WPC 2018
Peter Huntsman, president and CEO of Huntsman Corp., believes while "these are great times" and he is "very optimistic" about the future of the petrochemical industry, industry stakeholders should consider one caveat: "Now is the time to prepare for when times ain't so good."
"Our competition is no longer a half-dozen large chemical companies," Huntsman said. "It's hundreds of smaller, more competitive, more aggressive, faster decision-making companies that are moving downstream."
Another consideration molding the industry's future, Huntsman said, is people.
"You must build something that people can take pride in, and you must have a set of corporate ethics -- something that's larger and more valuable than just a balance sheet," he said, addressing delegates to the World Petrochemical Conference 2018 by IHS Markit, held recently in Houston. "We have got to empower people and look at ways to keep that product pipeline going. Reward people who push against conventional wisdom because our competition is moving very quickly."
A third point, he said, is "global focus." Speaking on a panel titled "Strategies for Prospering in an Extended Upcycle," Huntsman encouraged industry leaders to look at environmental changes taking place globally, particularly in China, India and Vietnam -- countries that have aggressively begun to enforce environmental regulations in recent years.
Bi Chen, executive vice president for China National Offshore Oil Corp., said China's petrochemical industry still has "great development potential in years to come."
Chen noted a "huge and continuously growing market, mature infrastructure, low investment cost and high capital efficiency" all contribute to China's advantage in petrochemical investment.
Population growth + demand = Responsibility
According to Thomas Casparie, vice president of Chemicals Americas for Shell Chemicals, population growth is one of several factors emerging as a major challenge to the energy industry's future.
Global population is expected to increase from approximately 7.4 billion today to nearly 10 billion by 2050, with 67 percent living in cities, Casparie said.
The resulting global energy demand, Casparie said, is likely to be almost 60-percent higher in 2060 than it is today, with 2 billion vehicles on the road versus the 800 million vehicles currently in operation.
In terms of ongoing supply, renewable energy could triple by 2050, "but we will still need large amounts of oil and gas to provide the full range of energy products we need," Casparie said.
Addressing the issue of climate change, Casparie said "net-zero emissions is a potentially achievable societal ambition."
Nick Clausi, senior vice president of polymers for ExxonMobil Chemical Co., noted the petrochemical industry has much to be proud of.
"We've improved the lives of literally millions of people around the globe, and we all have a responsibility to continue innovating to deliver sustainable solutions to support this growing and thriving population," he said.
The petrochemical industry's history of innovation is a reminder and a signal of the impact it can continue to have in the decades to come, Clausi said. "That is how we maintain a strong, growing demand for our products, and that is a strategy for maintaining an extended upcycle."
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