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Petrochemical Producers in Survival Mode Amid Record Profits

Oil Companies Shift Focus to Value-Added Chemicals

Global Industry Poised for Capacity Expansion

In a recent industry update, Reuters reported that petrochemical producers in Europe and Asia are battling for survival amidst record-high profits. Despite facing a global glut, China continues to expand its petrochemical capacity, adding to the competitive landscape.

Meanwhile, Indian oil companies are embracing a shift in strategy, aiming to enhance value creation by converting crude oil to chemicals. Globally, the industry is anticipated to witness a significant increase in propylene and ethylene capacity.

Key players like PetroChina, Reliance, and Sinopec are spearheading these efforts, propelling the sector towards robust growth. In 2021 and the first half of 2022, petrochemical companies reaped unprecedented revenues and profits.

Petrochemicals are projected to account for a substantial portion of global oil demand growth through 2030. The industry's recent consolidation culminated in the acquisition of the world's largest oil producer by a state-owned entity.