Petrochemicals may fare better as feed costs dip and processes are improved

Journal Article · Mon Apr 07 04:00:00 EST 1986 · Oil Gas J.; (United States)

OSTI ID:5755205

Wett, T

With fewer projects under way and with lower feedstock costs, the U.S. and European petrochemical industries could fare better this year. According to a survey by the Chemical Manufacturers Association, chemical industry shipments were up nearly 3% in the U.S. in 1984, compared to a year earlier. However, basic petrochemical production did not share uniformly in that increase. Comparative polymer and aromatics output was on the positive side, as was output of acetic acid, acrylonitrile, and vinyl chloride. But production of many other materials, including ethylene and propylene, was lower than the year before. The drop in ethylene output is somewhat deceiving. Producers for the most part were running available capacity near the maximum. Demand held up well and inventories dropped throughout the year, falling from over 2 billion lb to about 970 million lb as of the end of December. U.S. demand for ethylene and propylene is expected to remain strong in 1986. Propylene, in particular, should benefit from a worldwide shift to lighter feedstock. Petrochemical demand was also strong worldwide, and U.S. exports were relatively good. The long term projection is for a drop in the U.S. balance of trade in petrochemicals for the rest of the decade. But 1985 saw mishaps at production facilities in Europe that actually prompted a healthy increase in imports from the U.S., particularly for high-density polyethylene. Still, the International Trade Commission sees a drop in the U.S. petrochemical trade balance from the current $10 billion to around $1.6 billion in 1990 as a result of the expansion of the petrochemical industry in developing countries. Falling oil prices have given European producers some breathing room, however. One producer feels that European plants based on naphtha can, at least for a time, be competitive with the Middle East's ethane-fed plants, when delivery costs are factored in.

• Research Organization: Petrochemical/Gas
• OSTI ID: 5755205
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 84:14; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020500* -- Petroleum-- Products & By-Products
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
ACETIC ACID
ACRYLONITRILE
ALKENES
AROMATICS
CARBOXYLIC ACIDS
CHEMICAL FEEDSTOCKS
CHEMICAL INDUSTRY
CHEMICAL PLANTS
CHLORINATED ALIPHATIC HYDROCARBONS
COST
ETHYLENE
EUROPE
HALOGENATED ALIPHATIC HYDROCARBONS
HYDROCARBONS
INDUSTRIAL PLANTS
INDUSTRY
MONOCARBOXYLIC ACIDS
NITRILES
NORTH AMERICA
ORGANIC ACIDS
ORGANIC CHLORINE COMPOUNDS
ORGANIC COMPOUNDS
ORGANIC HALOGEN COMPOUNDS
ORGANIC NITROGEN COMPOUNDS
PETROCHEMICAL PLANTS
PETROCHEMICALS
PETROLEUM INDUSTRY
PETROLEUM PRODUCTS
POLYMERS
PRODUCTION
PROPYLENE
SUPPLY AND DEMAND
SURVEYS
TRADE
USA
VINYL CHLORIDE