Hi guys! Today’s blog will be about should you still invest in the petrochemicals Industry? I will tell you in detail and I’ll mention each and everything. Let’s start:
What is the petrochemical industry?
Petrochemicals are chemicals that are manufactured from crude oil and natural gas and are used for a variety of commercial purposes.
The two common type of petrochemicals are aromatics and olefins.
Olefins and aromatics are used for building a wide range of products like detergents, adhesives, solvents, plastic, and polymers.
Past of the petrochemical Industry:
In the 1970s petrochemical Industry came into existence and it grows rapidly from 1990s.
In today’s time, the petrochemical industry has its roots around the globe each and every part of the world is engaged with this industry it gives a lot of household products, is used in infrastructure, health care, etc.
In 2019 the production of ethylene globally was 190 million tonnes and propylene was 120 million tonnes. The production of aromatics was also off the charts it was produced in an enormous amount of 70 million tonnes.
A lot of people think that Saudi Arabia is very notorious for making petroleum and petrochemicals but ironically the biggest petrochemical plants are in the U.S.A and Western Europe, but the major and high growth is seen in the Middle East and Asia.
Future of this industry:
Petrochemicals is needed in our daily day to day life from our clothes to our detergent to our car tires to our food, so the future appears to be bright and there is nothing surprising that economically we are dependent on the petrochemical industry very much, but the main question is will it going to survive in the near future.
With passing time our world is also shifting to more environment friendly energies like solar energy, wind energy.
The world is heavily dependent on this industry the main product that is growing is plastic and the large number of plastics made is also harming the earth severely, but this demand will continue to grow and it won’t stop. Petrochemicals are expected to grow to 171.6 metric tonnes per year by 2050.
According to IEA the affect of petrochemicals in the air will decline to 90% and water will decline to 30% by 2050.
Should I invest in this industry or not?
Now the main question arises, I think you should go and invest in it but in the right companies there are various companies in this industry but the best ones are Conoco Phillips, Enbridge and Phillips 66.
So this is our blog about Petrochemical Industry