Global Petrochemical Industry Research Articles

Turning the tanker? Exploring the preconditions for change in the global petrochemical industry

Meeting the goals set out in the Paris Agreement will require rapid and deep reductions of greenhouse gas emissions (GHG) across all sectors of the global economy. Like all major societal transformations, this climate transition will impact both social and technical aspects of society and, depending on how it evolves, will reallocate social and economic benefits and costs differently. Recognising the importance of decarbonising key industry sectors with large GHG emissions and an significant impact on society, this study explores the opportunities and tensions involved in a transition of the petrochemical industry. We do so by analysing how access to natural resources, the petrochemical industry's role in the economy and the socio-political landscape in key petrochemical producing countries impacts prerequisites for change. The assessment shows that devising adequate policy responses, building legitimacy for change and potentially building bottom-up pressure for a timely climate transition are likely to look very different in the 10 countries with the greatest active petrochemical capacity in the world: China, the United States, India, South Korea, Saudi Arabia, Japan, Russia, Iran, Germany and Taiwan. The indicators used to explore the prerequisites for change all point to areas where actions and policies must advance for a transition to be realised. This includes efforts to cap fossil feedstock supply and production capacity, efforts to limit and ultimately reduce demand for plastics and fertilisers, and measures to formulate transition strategies and policies that capture and provide agency for communities and groups that are currently on the receiving end of negative health and environmental impacts from the petrochemical industry and that will also, in many cases, be most closely affected by a transition.

Evaluation of Financial Condition and Performance Optimization of the Petrochemical Industry Organization in the Context of Increased Financial Risks

The global petrochemical industry is one of the most dynamically developing - it is twice as fast as the world GDP in terms of growth rates. Over the past 20 years, significant changes have taken place in this industry. New major players have appeared and the structure has changed. As for Russia, its share in the global petrochemical production is about 2.5%. At the same time, Russia is one of the world leaders in the production and export of hydrocarbon raw materials, where the country's share is about 12 - 19%. Currently, a steady trend in the development of polymer materials science has been observed and it will continue to develop. In the next 15 years, the demand for petrochemical products will grow by an average of 4% per year. The purpose of this study is to analyze the financial standing, assess the prospects for development and optimize the activity of one of the largest systemically important organizations of the petrochemical industry in Russia - PJSC

Spatial analysis of Hyperion hyperspectral indices to map the vegetation state in the coastal oases of Tunisia

An elevated human presence due to the involvement of the coastal oases of Tunisia in the global petrochemical industry and population pressure in the 1970s has resulted in major changes in the oases’ agro–ecosystem environment. The consequences of this have been urbanisation and rural exodus, priority to the industrial sectors and services at the expense of agriculture, high mobility and rise of trade. The coastal oases of Gabes located in the South-East of Tunisia are considered in this study. This has been affected by sharp degradation, mainly of anthropogenic origins such as demographic growth, extension of the urban areas and creation of a highly contaminating chemical zone amplifying their environmental vulnerability. Satellite data is an essential tool in the study and mapping of these types of environment and for that, we started with the mapping of the vegetative land use using the vegetation indices derived from the hyperspectral scene of the Hyperion sensor (25 April 2010) and field data. This has allowed us to better characterise the most vulnerable areas and to identify the socio–environmental risks. The analysis of the radiometric indices leads to the definition of the spatial extension of vegetation cover in the oases. This study has permitted us to outline the oases’ typologies in Gabes and to discuss their dynamics in the short term.

Integration and Isolation in the Global Petrochemical Industry: A Multiscalar Corporate Network Analysis

abstract The global petrochemical industry has long been characterized by stable patterns of Western corporate and geographic leadership, but since the early 2000s, the global playing field has changed significantly. China has overtaken the US and Europe as the world’s largest petrochemical producer, and other emerging economies have become global petrochemical players. Combining insights from scholarship on global corporate elites, world city networks, and relational economic geography, this article examines patterns in the corporate networks of leading petrochemical corporations. The research is based on a multiscalar corporate network analysis, applying social network analysis to identify board interlocks, joint venture interlocks, and spatial interlocks between corporations. Through analyzing corporate networks across multiple scales, the research reveals patterns of both integration and isolation within the petrochemical industry. Isolation is evident in disconnected regional corporate elite networks, where the established North Atlantic corporate elite is interconnected through board interlocks, while corporate networks in Asia and other emerging economies remain disconnected. However, high levels of integration within the industry are also evident in an interconnected international company system formed through joint venture collaborations and in overlapping subsidiary networks centered on petrochemical hubs around the world. The article argues that the results demonstrate a combination of resilience and change, or path dependence and contingency, in patterns of corporate power and collaboration. Western company networks still form the social and spatial backbone of the industry, but these have been challenged by emerging strategic centers and isolated elite networks in other parts of the world. This article contributes to debates on industrial corporate elites, multiple globalizations, and the multipolar global economy.

The Middle East’s Oil Industry in the Global Market: Focusing on Its Strength, Weakness, Opportunity, and Threat

This study analyzes the Middle East’s oil industry with the SWOT technique, by investigating its strengths, weaknesses, opportunities, and threats. The industry’s strengths include its reserves, low production costs, and the ability to form alliances with other oil-producing countries. Meanwhile, geopolitical risks and the region’s dependence on oil serve as weaknesses of the industry. Opportunities encompass efforts to develop technologies for the clean use of oil and an expansion of the global petrochemical industry. However, the shale revolution and climate change pose serious threats. Overall, the status of the Middle East’s oil industry will not quickly reduce soon. The oil-producing countries in the Middle East are trying to achieve their goals of balanced growth by overcoming the weaknesses and threats, and by taking advantage of the strengths and opportunities.

R&D DYNAMICS AND FIRM GROWTH: THE IMPORTANCE OF R&D PERSISTENCY IN THE ECONOMIC CRISIS

There has been a lot of interest in R&D dynamics, including the persistency and volatility of R&D investment. However, there is a lack of empirical evidence supporting the impact of R&D dynamics on firm growth in the context of an economic crisis. This study examines the effects of R&D dynamics on firm growth during and after the global financial crisis of 2008–2009. Based on firm-level data, we construct a balanced panel for 1,137 firms in the global petrochemical industry. Our findings indicate that firms with R&D persistency show higher growth during and after the crisis, regardless of firm size. R&D persistency has a higher impact on firm growth in large firms than in smaller ones. In addition, R&D persistency has greater influence than the level of R&D investment. Firms should pursue non-cyclical and consistent R&D strategies with a long-term perspective, especially in high uncertainty conditions.

A Post-Oil Era Is a Myth

The often quoted statement attributed to the former Saudi oil minister Sheikh Ahmad Zaki Yamani that “the Stone Age came to an end not for lack of stone and the Oil Age will end long before we run out of oil” is not strictly accurate. The Stone Age has never ended. It is still with us to this very minute in the form of the stones we continue to use to build houses, bridges and monuments. What has ended is only an aspect of the Stone Age, namely tool making from stone, which has been substituted for practicability by bronze and metal tool making with the advent of metalworking, namely, smelting of Bronze and Iron. The same logic applies to oil. There could never be a post-oil era throughout the 21st century and far beyond because it is very doubtful that an alternative as versatile and practicable as oil, particularly in transport, could totally replace oil in the next 100 years and beyond. What will change is some aspects of the multi-uses of oil in transport, electricity generation and water desalination which will eventually be mostly powered by solar energy. However, oil will continue to be used extensively in the global petrochemical industry and other industries and outlets from pharmaceuticals to plastics, aviation and computers to agriculture and also in transport in most of the developing countries. Oil will continue to reign supreme throughout the 21st century and far beyond.

Deadly accidents strike Mexico, Saudi Arabia

It was a disastrous week for the global petrochemical industry as two major chemical complexes—one in Mexico and another in Saudi Arabia—both suffered deadly industrial accidents. On April 20, an explosion rocked a vinyl chloride plant in Coatzacoalcos, Mexico, belonging to Mexichem and the state oil company Pemex. The explosion killed 13 workers and injured 136, 48 of whom have already been released from the hospital, according to the companies. Some 2,000 inhabitants of the surrounding area were temporarily evacuated. The cause of the accident, which is at a site where the partners recently conducted a $200 million expansion, is under investigation. In Saudi Arabia, a fire on April 16 killed 12 workers and injured 11 at the Saudi Basic Industries Corp. affiliate Jubail United Petrochemical in Jubail. Employees were carrying out routine maintenance and changing catalysts at the site’s ethylene glycol plant when the accident occurred, the company says.

Petrochemistry - basis for development of domestic processing industry

Global petrochemical industry development trends were considered. SWOT analysis of domestic petrochemical industry was given, and approaches to its development in the country were examined.

Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective

This paper analyses the competitive advantages of Saudi Arabia in the global petrochemical industry. Porter's model is used for this purpose. Saudi Arabia, a leading producer of oil, is also the largest worldwide producer of a number of petrochemical products. Competitiveness in the global market demands an examination of comparative advantages and is the reason why Saudi Arabia is yet to succeed in the global market. This paper is an attempt to analyse the industry and to provide strategic alternatives.

The long-term impact of GHG reduction policies on global trade: A case study for the petrochemical industry

A systems engineering model has been developed for the global petrochemical industry, named FREAK (FoReign trade Effect Assessment Kit). FREAK has been developed for the analysis of the impact of CO 2 taxes on the international trade and the global production structure. A life cycle approach has been applied for 50 petrochemical products and a broad range of emission reduction strategies have been considered. The scope of the policies has been varied (which countries apply the tax) and the policy ambition has been varied (the tax level). The results show that the regional distribution of the petrochemical production will not change significantly in case global policies are introduced. However, the regional distribution will change significantly if only a limited number of industrialised countries introduce a tax. The regional impact of such a tax depends on the carbon accounting approach for intermediate petrochemical products trade. The impacts can even be positive for the industry within the policy region. The techno-economic potential for emission mitigation is significant, even from a global perspective. The physical production volume increases threefold between 1995 and 2025. In the base case (BC) without policies, emissions increase by 65% to 970 Mt CO 2 in 2025. Global greenhouse gas (GHG) policies could halve these emissions. A 20% reduction (approximately 200 Mt) can be achieved in case developing countries and oil exporting countries do not participate in emission reduction.

Petrochemical makers warned of capacity pitfall

Producers of large-volume organic chemicals are being cautioned to curb their euphoria over current high profitability and to avoid rushing to invest in new plant capacity that would lead to another round of overcapacity. The petrochemical industry is advised to examine carefully future U.S. demand growth, to be aware of competition to its rising exports, and to continue improving its technology that will cut costs, maintain the environment, and provide better products and services. This advice was presented late last month to a large and optimistic segment of the global petrochemical industry's managers at the International Petrochemical Conference, sponsored by the National Petroleum Refiners Association and held in San Antonio. NPRA officials estimate that nearly half the 2700 or more attendees at the conference represented chemical and related companies with headquarters outside the U.S. The companies doing business today learned tough lessons during the past two decades, Frank P. Popoff, president an...

The Product Life-Cycle and the Location of the Global Petrochemical Industry after the Second Oil Shock

Vernon's product life-cycle model is elaborated to relate a three-stage demand cycle to corporate behavior and the location of global production for a capital- intensive, scale-sensitive industry u...