A petrochemical renewal

The petrochemical industry is in a downturn likely to be so long and so deep that it will be forever transformed when it emerges at the other end. Over the next several years, many older, less efficient chemical plants, particularly in Europe, will close. The center of gravity will shift to newer facilities in North America, the Middle East, and China. When the downturn is over, the industry will likely be more sustainable too. Projects to decarbonize chemical production, such as with low-carbon hydrogen fuel, will start coming online by the end of the decade. Companies are ramping up efforts to produce recycled plastics. Even biobased substitutes for fossil fuel–derived plastics may be in the offing. These are some of the takeaways from the World Chemical Forum, held last month in Houston by the consulting firm Chemical Market Analytics by OPIS (CMA). “We are in a trough; it’s wide, relatively