Earlier this month, Royal Dutch Shell plc decided to shut down operations at its Convent refinery in Louisiana—a move that will result in a loss of 700 jobs. This is just one American refinery that has been shut down as a result of shifts in the oil-refining industry stemming from the COVID-19 pandemic.
With their economies recovering well from the coronavirus pandemic, China and several other Asian countries have experienced surging demand for plastics and fuels; a stark contrast to the situation in the United States.
Refineries across the United States are struggling to survive amidst national attempts to dismiss the excessive use of fossil fuels. As a result, China is now in a prime position to take charge as the world leader in oil-refinery.
According to the International Energy Agency, China can be expected to take the United States’ crown as early as next year. This will see the U.S. lose their elite status for the first time since the mid-nineteenth century.
Much of China’s expansion efforts are expected to result from the growing demand in Asia for petrochemicals used in the manufacturing of plastics. Between 2019 and 2027, it is predicted that 70% to 80% of the increased demand for petrochemicals will be for the production of plastics.
