The rosy outlook for plastics, one of the oil industry's most promising growth markets, is starting to sour.
U.S. shale is expected to account for nearly three-quarters of global supply growth over the next five years—even as it faces both short- and long-term questions about its viability.
Petchem growth appears guaranteed for the coming decades with demand rising faster than GDP in non-OECD countries and limited substitutes in this area.
After seeing massive growth so far this decade, natural gas liquids (NGLs) are expected to rise by about 1.2 million barrels in the next five years. Despite the increase in NGLs, a key source of supply for petchems, a global oil supply gap could still form early next decade.
U.S. oil production has received a lot of attention lately for stalling out and beginning to decline, but the U.S. shale gas revolution also appears to have also slowed down, at least for now.