Market Analysis - Petrochemistry 2017
This report segments the global petrochemicals market as follows:
- Petrochemicals Market: Product Segment Analysis
- Propylene oxide
- Acrylic acid
- Other (Including Polygas chemicals and oxo-chemicals)
- Styrene-butadiene rubber
- Butadiene rubber
- Acrylonitrile butadiene styrene
- Styrene-butadiene latex
- Other (Including Nitrile rubber and mechanical belts)
- Ethyl benzene
- Alkyl benzene
- Other (Including Maleic anhydride)
- Petrochemicals Market: Regional Analysis
- North America
- Rest of Asia Pacific
- Middle East & Africa
- Latin America
- Petrochemicals are widely used in various end-use industries such as construction, automobile and packaging. Hence, growth in these end-use industries is one of the major factors driving the global petrochemicals market. Abundant availability of raw materials in the Middle East - the region is one of the largest producers and exporters of crude oil and natural gas in the world - is another factor boosting the petrochemicals market. Government initiatives in India and China for establishing petrochemical complexes are also expected to drive the market for petrochemicals. However, shift towards bio-based chemicals coupled with environmental issues arising due to usage of various petrochemicals is projected to hamper market growth during the forecast period.
- Ethylene was the leading petrochemical product, accounting for over 25% of the global petrochemicals market in 2013. Ethylene was followed by propylene, which is primarily used in the manufacture of polypropylene and propylene oxide. Methanol is projected to be the fastest growing segment from 2014 to 2020. Growth of methanol is directly related to its increasing usage in gasoline blending and methanol to olefins (MTO) processes. Other petrochemicals such as butadiene, benzene, xylene, toluene, vinyls and styrene accounted for a significant portion of the global petrochemicals market share in 2013.
- The global market for petrochemicals is highly fragmented in nature. It is dominated by top multinational corporations that operate across the value chain. Major players in the petrochemicals industry include BASF SE, ExxonMobil, The Dow Chemical Company, Shell Chemical Company, SABIC, Sinopec Limited, LyondellBasell Industries, Total S.A., Sumitomo Chemical Co. Ltd., Chevron Phillips Chemical Company LLC and E. I. du Pont de Nemours and Company.
Snapshot of American Petrochemical Market:
Oil prices imploded in 2015, and experts say they will decline further before recovering later in 2016. The drop is a challenge to the natural-gas-based petrochemical industry in the U.S., but producers should remain competitive versus the rest of the world.
After hitting a peak of more than $105 per barrel last June, oil prices dropped below $60 in December. Oversupply in the marketplace is running 700,000 bbl ahead of global demand of about 92 million bbl per day, according to the Energy Information Administration. This overhang, EIA says, will persist through the middle of the year, putting downward pressure on prices.
That’s good news for chemical companies in Asia and Europe, which make ethylene primarily from oil-based naphtha. Most U.S. chemical makers crack natural-gas-derived ethane, which has been cheap since the shale gas boom began late last decade. But now the oil price decline is pinching their cost advantage.
For example, high-cost Asian producers set global prices for petrochemical derivatives such as polyethylene, notes Dewey Johnson, senior director of market research for IHS Chemical. Lower oil prices are starting to push those prices down.
However, strong demand at home might mute the impact for U.S. companies. “I don’t think it is a given that the U.S. matches Asian movement,” Johnson says. “I would expect there will be reduced margins for U.S. producers—but still very favorable margins.”
Sergey Vasnetsov, head of strategic planning and transactions at LyondellBasell Industries, made a similar assessment before an investor conference last month. It costs between 10 and 15 cents to make a pound of ethylene in a U.S. ethane cracker, he said, and 40 to 60 cents to do so in naphtha crackers elsewhere. Lower oil prices might bring costs for naphtha crackers down somewhat, but not to North American levels.
And the economic effect of lower oil prices should be beneficial, Vasnetsov pointed out, citing a rule of thumb that the global economy gets a 0.2% lift in annual growth and a 0.5% reduction in inflation for every $15 decline in oil prices.
Top 15 largest world oil companies by reserves and production are Saudi Aramco, NIOC, Qatar Petroleum, ExxonMobil, PetroChina, PDVSA, BP, ADNOC, Royal Dutch Shell, Pemex, NNPC, Chevron, NOC, Kuwait Petroleum Corporation, Sonatrach.
Top U.S. oil and gas companies
The oil and gas industry is one of the largest industries worldwide. This sector is involved in exploration, extraction, refining, transport and marketing of these commodities. Many industries are extremely dependent on oil and gas products, mostly in the form of energy fuels or raw materials for chemical products.
Oil and gas companies from the United States are among the world’s largest corporations. For example, ExxonMobil, Conoco Phillips and Chevron are long on top globally based on revenue. Periodically, ExxonMobil was the world’s largest company in general, with revenues exceeding by far the mark of 400 billion U.S. dollars. As of March 2015, it was also the company with the highest market capitalization, only topped by technology giant Apple. Most of the top U.S. oil and gas companies are involved all over the world, generating large portions of their incomes outside the United States.
The United States has a long tradition of oil and gas companies. ExxonMobil, for example, is a direct descendent of Rockefeller’s Standard Oil Company, which was founded in 1870. Chevron has its roots in the Pacific Coast Oil Company, founded in 1879.
Market value in billion U.S dollars.
Top 10 Universities which offer Petroleum Engineering:
- University of Adelaide
- Texas A&M University
- University of New South Wales
- Colorado School of Mines
- University of Manchester
- University of Texas
- The University of Stavanger
- Curtin University
- Universiti Teknologi Petronas
- Heriot-Watt University
Global Petroleum Associations:
- American Association of Petroleum Geologists
- American Institute of Mining, Metallurgical, and Petroleum Engineers
- Australian Institute of Petroleum
- Australian Petroleum Production and Exploration Association
- Canadian Association of Oil well Drilling Contractors
- Canadian Association Of Petroleum Producers
- Canadian Heavy Oil Association
- Canadian Institute of Mining, Metallurgy and Petroleum
- Canadian Society of Petroleum Geologists
- Denver Region Exploration Geologists' Society
- Independent Petroleum Association of America
- Japanese Association for Petroleum Technology
Professional and Industry Associations in America:
- The Society of Petroleum Engineers (SPE)
- American Association of Petroleum Geologists
- American Association of Drilling Engineers
- American Institute of Chemical Engineers
- Council of Petroleum Accountants Societies
- Society of Petroleum Engineers
- American Association of Professional Landmen
In Atlanta there are more than 45 Petroleum companies and around 1.2 million people are working and researching on Petroleum. Major petroleum companies in Georgia State are: Mansfield Energy, Atlanta Petroleum, Akins Petroleum Company, Amicalola Propane, B P Amoco Marketer's Association, Barrow Propane Gas Inc, Blue Flame Gas Company, City of Tifton Natural Gas Sys, Colonial Group Inc, Dilmar Oil Company, Dixie Gas & Oil Corporation, Fletcher Oil, Gas South, Lewis & Raulerson Inc, May & Carter Oil Company, South Star, Strickland Oil Company and Tugalo Gas Company.
Why to attend???
With members from around the world focused on learning about Petroleum and Refinery; this is your single best opportunity to reach the largest assemblage of participants from the global petroleum sector. Conduct demonstrations, distribute information, meet with current and potential customers, make a splash with a new product line, and receive name recognition at this 3-day event.
World-renowned speakers, the most recent techniques, tactics, and the newest updates in the field of petroleum and refinery are hallmarks of this conference.
Petrochemical Markets provides detailed supply, demand and price forecasts of the key petrochemical feedstock naphtha along with an overview of the petrochemicals market including ethylene, propylene, benzene and paraxylene. The service also provides analysis on cracking economics, arbitrage economics, refinery and petrochemical facility turnarounds and their impacts on regional balance. Clients make confident decisions based on actionable insight from HIS Energy’s in-depth knowledge of market forces and political developments that drive petrochemical feedstock market combined with deep quantitative detail and extensive industry experience.
Petrochemical Market analysis:
Petrochemicals are an essential part of commodities used in daily lives. They are used in various end-use industries, ranging from manufacturing to consumer goods. Petrochemicals are chemical compounds derived from petroleum and other hydrocarbons, which are obtained from crude oil and natural gas. They are primarily used as chemical building blocks for a variety of materials and applications. Rising demand for petrochemicals in major end-use industries coupled with favourable operating conditions, primarily in the Middle East and Asia Pacific, is expected to drive the global market for petrochemicals from 2013 to 2030. Demand for bio-based chemicals is increasing due to growing consumer awareness and benefits associated with their usage. Investment in bio-based chemicals in the public sector (including national laboratories and universities) and commercial sector (including large multinational corporations) is anticipated to increase in the near future. Therefore, this trend is estimated to hamper the petrochemicals market. Additionally, volatility in prices of crude oil & natural gas is likely to inhibit market growth. However, rising shale gas discoveries, primarily in North America (including the U.S. and Canada) is benefitting petrochemical producers, since shale gas is considered a substitute feedstock that is used in the manufacture of petrochemicals.
The report provides analysis and forecast for the global petrochemicals market in terms of volume (million tons) and revenue (US$ Bn) from 2013 to 2020. The study segments the market based on product type into ethylene, propylene, butadiene, benzene, xylene, toluene, vinyls, styrene and methanol. The report further analyzes each product type based on their application and region from 2013 to 2030. The report also includes estimates and forecast of demand for petrochemicals in major geographical regions including North America, Europe, China, Rest of Asia Pacific, the Middle East & Africa, and Latin America. The market size and forecast for each region has been provided for the period from 2013 to 2020 along with the CAGR (%) for the forecast period between 2014 and 2020. All product segments are forecast for the period from 2013 to 2020 in terms of volume (million tons) and revenue (US$ Bn).
The report also comprises a detailed value chain analysis that offers a comprehensive view of value addition at each stage of the value chain. The value chain of petrochemical is significantly integrated, both from the downstream and the upstream perspective. It is dominated by refineries that process raw crude oil, natural gas and coal to manufacture olefins and aromatics through fluid catalytic cracking of petroleum fractions. The study includes Porter’s Five Forces model, which analyzes the existing competition, bargaining power of suppliers, bargaining power of buyers, threat from substitutes, and threat from new entrants. The report includes drivers and restraints affecting the growth of the petrochemicals market, and the impact of these factors on the market in the near future. Additionally, it provides opportunities for the petrochemicals market on the global level during the forecast period. The report also includes market shares of major companies operating in the global petrochemicals market. It also provides market attractiveness of petrochemicals. The market attractiveness analysis is based on various factors such as market size of each product, growth rate during the forecast period, demand for downstream products, and government and environmental regulations.
The report comprises company profiles of major players in the market. These profiles cover parameters such as company overview, product portfolio, financial overview, business strategies, and recent developments. Major players analyzed in the report include BASF SE, ExxonMobil, The Dow Chemical Company, Shell Chemical Company, SABIC, Sinopec Limited, LyondellBasell Industries, Total S.A., Sumitomo Chemical Co. Ltd., Chevron Phillips Chemical Company LLC and E. I. du Pont de Nemours and Company.