The Future of Plastics Will Determine the Future of Oil Demand 

Posted on April 30, 2024 by DrRossH in General

Source: The Future of Plastics Will Determine the Future of Oil Demand | Markets Insider

The UN is this week discussing the future of plastic—or so it would seem on the surface. The UN Global Plastics Treaty negotiations aim to curb plastic pollution by essentially curbing the use of plastics globally. And they look set to fail.

The goal is certainly noble. Reducing the massive amount of plastic waste that we produce on a daily basis to keep it from ending up in rivers, oceans and, according to some researchers, our bodies. Achieving this goal, however, is quite another matter.

Plastics, especially single-use plastics in packaging, has been instrumental in making a lot of products more affordable to more people. And while electronics, for instance, can certainly be sold in non-plastic packaging, fresh fruit, vegetables, and meat are another matter—and expensive matter.

The report above cites BP predictions that plastics will come to account for as much as 95% of oil demand growth in the two decades to 2040, which echoes a lot of other forecasts for oil demand prospects. Indeed, plastics are widely seen as the biggest driver of oil demand in the future, although we might end up surprised at how long demand from the transport sector endures in view of the latest developments in EV markets.