Are plastics expected to become more important to the oil industry as fuel demand declines?
As use of electric vehicles, alternative fuels and public transit grows, the International Energy Agency predicts petrochemicals (used to make plastics) will drive a third of all fossil fuel industry growth by 2030, and nearly half by 2050.
The American Chemistry Council reports that from 2010-2018, the chemical and plastics industry invested over $200 billion in natural gas liquids like ethane, “the main feedstock for basic petrochemicals and plastics in the United States.”
The World Economic Forum expects global plastics demand to double in the next 20 years. According to the Center for International Environmental Law, if the plastics industry continues expanding at its current rate, by 2050 it will account for 10% to 13% of the emissions allowable in our remaining “carbon budget”—i.e., the emissions ceiling to avoid the earth warming by more than a dangerous 1.5° C.
