The dynamics of the upstream crude oil industry influence the economics of petrochemicals and their derived products. The shale boom in the US, political instability in the Middle East and high production of crude oil to dominate its market share by major producers have positively affected the supply-chain of the petrochemicals industry. With refiners expanding their existing capacities along with Greenfield investments and looking for alternative feedstock, the industry will see swift volume growth globally, adding more worth to the multi-billion dollar industry.
Since oil price decline in 2014, the petrochemical industry has witnessed increased competition due to improving profit margins of naphtha based crackers. Prior to 2014, natural gas was gaining prominence due to its comparatively lower price. Many refiners were shifting from naphtha based crude cracking to natural gas crackers. However, the drop in crude oil prices to nearly 40% of their 2013 price has reversed the trends in petrochemical industry rejuvenating the profitability of crude oil-based petrochemicals.
Prismane consulting offers built-in price and volume models to track down the profitability in the petrochemicals industry at different oil price scenarios. These models link the price and demand of petrochemicals with input and feedstock enabling the user to predict and forecast the possible outcomes in the petrochemical industry. These predictive models are used to articulate strategies for our clients helping them to make critical decisions.
Connect with us to know more about our models. Based on these models we can formulate effective strategies that will help you smoothly steer through the clouds of competition.