Lyn Tattum, vice president of oil, midstream, downstream and chemical for IHS Markit, recently described the current fluctuating state of economies and society around the world.
"Behavioral patterns are altering like never before, [perhaps similar to] the time of the Renaissance which, we know, fueled innovation and insight in science," she said.
As the oil, gas and petrochemical industry takes on challenges including energy transition and plastics circularity, its leaders shared insights at the World Petrochemical Conference 2021.
"As recent events have taught us, industry must be prepared for potential cycle disrupters in things like the energy transition and regulatory changes," said Mark Lashier of Chevron Phillips Chemical.
Lashier said he believes it is imperative that elected officials understand the value of circular investments "to avoid putting prohibitive regulatory environments on top of industry that may actually disrupt our ability to provide more sustainable solutions."
Bob Patel, CEO of LyondellBasell, reminded conference delegates that energy transition is not a new phenomenon.
"Energy transitions have occurred in the past, from biomass to coal, coal to petroleum, then we had nuclear and natural gas, and now renewables," he said. "What's important about those is recognizing they're occurring and the role of innovation in managing those transitions."
Despite these shifting challenges of recent years that have included a pandemic, hurricanes and historic freezing, Patel said there is "no doubt that this industry is extremely resilient or very innovative, and now we're proving that we can collaborate across the value chain to solve some of the world's most challenging problems.
"So, I look forward to the future," he said. "The chemical industry has a very bright future."
Finding opportunity amid challenge
Thomas Casparie, executive vice president of Shell Chemicals, said he believes one of the most pressing challenges for industry is dealing with climate change. In order to do that successfully, the entirety of the globe's current energy systems needs to develop and implement more solar panels, wind turbines, lightweight materials and batteries - "all of the products for which our industry actually provide the building blocks," he said.
"The good news," he added, "is demand for our products will continue to grow throughout the energy transition."
Regarding the sustainability challenges it faces, Casparie said he is proud of how the industry is stepping up to address the issue of plastic waste while recognizing that there is still a lot more to do.
"Now is the time for the industry to unite around the issue of climate change and really look at the credible pathways to net zero," he said.
Eelco Hoekstra, chairman of the executive board and CEO of Royal Vopak, said he believes 2020 will prove to have been an inflection point to reflect that industry has once again changed.
"We expect the high volatility to continue, and we believe the industry will organize for much greater collaboration, particularly between the industrial complex and infrastructure providers," Hoekstra said.
Karen McKee, president of ExxonMobil Chemical Co., noted that industry's response to the COVID-19 pandemic to develop the products and solutions for society speaks to the crucial role of technology as problem solver.
"The lessons we are taking on from the COVID-19 world are foundations for resilience that will be hugely beneficial as the industry works to deliver essential products and respond to the desires of society and our customers' changing needs," she said. "Whatever our future might hold, based on the developments the industry has delivered [in response to COVID-19], I am confident that we will continue to demonstrate the resilience and agility to deliver more innovative solutions for the benefit of society."
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