Petrochemical industry has a positive future in parallel with global growth

Organization of Petroleum Exporting Countries confirmed (OPEC) that the global petrochemical industry has a positive future and will continue to grow in parallel with the growth of the global economy and high population growth.

The organization said that the petrochemical important source of demand for oil and consumes about 11 per cent of the total demand for oil.

The most prominent products of ethylene and propylene this industry and butadiene, benzene, toluene, which represents the basic petrochemical production and represents more than 90 per cent of the final petrochemical products.

“OPEC” bulletin pointed out that the discussions finally took place between representatives of the Member States to emphasize the close relationship between the demand for petrochemicals growth and GDP growth of any country especially during which production countries.

She said that the GDP may be exposed to some of the economic problems and slowing growth rate, however, increased resources and population growth accelerated in many developing countries will ensure a growing demand for petrochemical sector and will continue developing countries are the main driver of demand at the international level.

She explained that the profitability of the sector is mainly based on the low cost of production, particularly in respect of raw and intermediate materials and exploited optimally advantage, noting that according to the current market conditions, the ethane gas in the Middle East, North America’s best to use in production and the most effective in terms of lower cost of production.

The report said that in North America happened broad activity in shale gas discovery which was reflected clearly on the growth of the petrochemical industry due to the large increase in the amount of low-cost ethane in the market.

For production in China, “OPEC” bulletin has noted an increase in the production of olefins based on the methanol derived from low-grade coal is expected to lead to a boom in production by about more than eight million tons of ethylene per year by 2018.

With regard to the European Union said that the petrochemical industry in the European Union was forced to fight a long period of restructuring as a result of increased competitive pressures in all of the field of export and domestic markets.

She said, “OPEC” The European producers have been forced to adapt to changes in economic conditions and the market where some of them to close uneconomic production centers of production and transformation of others toward extreme specialization in a petrochemical sectors.

She pointed out that the recent period has seen the European trend towards investment in gas import US ethane at attractive prices from the United States to lower the cost of production.

She explained, “OPEC” that despite the challenges and difficulties faced by the petrochemical sector in the European Union, but it can not deny the leading and pivotal role of European producers in the development of the industry and provide many added values.

She stressed that the industry, which relies on crude oil from naphtha, will thrive and grow again and increasingly important in the long run and in spite of the economic developments in North America and China.

And called for the continuation of studies and hold discussions and share specialists in all issues of concern to the energy industry in the coming period, because it contributes to the development of ideas necessary to cope with the economic variables and mechanisms.

She said, “OPEC” The petrochemical industry has seen significant changes in the past few years and is the changes that have affected directly or indirectly in the “OPEC” countries in the “OPEC” Partners In the forefront of the European Union.

She explained that the industry played an important role in the economies of the Member States of the European Union, referring to the petrochemicals accounts for nearly 25 per cent of the chemical industry in Europe as it directly employs 400 thousand employees and more directly than twice or twice that figure.

In “OPEC” countries of the organization noted that the petrochemical likewise played an important role in enhancing the value added in the production of hydrocarbons and diversify the economies of OECD countries.

She noted the close connection between the refining and petrochemical industries in the past few years, indicating that the refining industry in the European Union faced many of the difficult challenges, including unbalanced increase in fuels, especially diesel and gasoline production and increase competition with productivity growth in the global market as well as strict environmental standards.

She noted that the European petrochemical industry has faced other challenges such as high rates of growth in employment and strict environmental legislation and the difficulty of obtaining cheap raw materials as well as weak demand growth.