The big oil, gas and petrochemicals companies have already started planning for how the world will look after we have conquered the virus. What follows is therefore one scenario for how the petrochemicals world might look. I hope it helps to stimulate and challenge your thinking. These are my personal views only and not the […]
Asian Chemical Connections
Be very, very cautious about buying into the idea of a Q2 crude price rally
By John Richardson IT IS the unprecedented nature of the demand shock that’s the thing, regardless of how much Saudi Arabia and Russia might cut crude production. In the old world, big production cutbacks would often result in a sustained rise in oil prices. But that was when there was normal demand. With some 3bn […]
China: temper your expectations of a H2 recovery for supply as well as demand reasons
By John Richardson CHINA IS gradually getting back to work, but only gradually because the government is trying to carefully calibrate the release of tens of millions of people from quarantine without triggering a second wave of infections. The way that China has tackled the disease has been nothing short of heroic. Small and medium-sized […]
Petrochemical feedstock purchasing managers: What to think about and what do next
By John Richardson ALL THE old assumptions about how oil, feedstock and petrochemicals markets work need to quite literally be thrown out of the window. No old model or way of thinking will work anymore until the crisis is over. The permanent changes that will take place in markets, and there will be many, is […]
Vital work to maintain petrochemicals supply for essential services must continue
By John Richardson INDUSTRY associations around the world are lobbying governments about the importance of the petrochemical industry for vital services beyond just the obvious production of hygiene products, face masks, pill bottles and disposable plastic bed sheets etc. This vital work needs to continue as the petrochemicals business is not fully understood by many […]
Polyethylene: How to plan sensibly as we face threat of new Global Depression
By John Richardson I SINCERELY want to help you guys. That’s what I am here for. To this end, here is another warning not to heed what I believe is wrong advice about the polyethylene (PE) demand being to some extent immune from an economic crisis that Bruno Le Maire, France’s finance minister, yesterday said […]
Coronavirus may take as much as two years to be brought under control
By John Richardson The only honest answer is that none of us know how events will turn out because of the rapid pace and unpredictable nature of the coronavirus crisis. As of writing, for instance, India had just gone announced a temporary lockdown But petrochemicals companies must still try and predict the future otherwise they […]
Coronavirus: The new ten-point guide for the petrochemicals industry
By John Richardson EARLIER THIS month I provided you with a ten-point guide for the impact of coronavirus on the petrochemicals industry. There have been many, many changes since then. Here is the latest version: The number One priority is employees and their well-being. Their psychological and emotional as well as physical needs will be […]
Container freight shortages will lead to regional petrochemicals trade and supply shortages
By John Richardson THIS excellent chart highlights the lingering effects of the coronavirus outbreak in China on the global container freight industry. Now, because the crisis has gone global, we must expect the disruptions to intensify: Many containers will be stuck in the wrong places, unable to find cargoes to move to where they are […]
Sustained collapse in oil prices: Effect on petrochemicals and the global economy
By John Richardson IT COULD be a game of chicken designed to pull Russia back to the negotiating table and the Saudis might win the game. This is how you could be interpreting the Saudi decision to raise oil production and offer aggressive discounts to customers following last week’s failure by OPEC to agree cuts […]