Bioplastics Chronicles

Is The End of Big Oil Coming?

Many Oil companies are investing in refineries to convert fossil fuels into plastics. But is it wise?

According to the BP Energy Outlook 2019 projections, the largest demand for oil in the next twenty years will come from plastics. The EIA expects U.S. demand for crude oil to increase from 40 million metric tons a year to 60 million by 2040.

On the other hand, we have public concerns over plastic waste, CO2 emissions and a war on plastics is coming at us. Some experts forecast that this my lead to a decrease in crude oil demand by 20% in the coming years.

In contrast to big oil companies, other companies invest in bio and renewable energy and chemicals. Neste announced that they will sell their fossil retail operations in Russia to Tatneft and will focus on renewable from now on. Total invested in a PLA production unit in Thailand (Total Corbion) to tap into the bioplastics market.

Bosch announced that they seem to have found a buyer for their plastics packaging operations. They announced their intention to sell the unit in June 2018 and hoped to get between €1.3 and 1.5 Bln. The current deal is set to go through for € 850 Mln. It lost almost half of its value in 365 days; and it’s not even sold yet.


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