Petrochemicals Driving surge in Oil Demand- IEA


In short
The projection is good news for countries in East Africa especially Uganda as it moves towards the production of oil and gas in the Albertine Graben.

The International Energy Agency (IEA) says petrochemicals are rapidly becoming the largest driver of global oil consumption.  In a report released on Friday, IEA estimates that there will be an incremental demand growth of 9.6 million barrels of oil a day between 2017 to 2030 with about 99 million barrels per day (bpd).
Petrochemicals - that are derived from oil and gas are used in all sorts of daily products such as plastics, fertilisers, packaging, clothing, digital devices, medical equipment, detergents and tyres. The projection is good news for countries in East Africa especially Uganda as it moves towards the production of oil and gas in the Albertine Graben. 

Some experts have suggested that petrochemicals and fertilizer industries can  be developed alongside Uganda's oil and gas industry.   Some had suggested that Uganda's oil and gas development faces a bleak future as the global automobile industry moves from fossil powered cars to electric ones. 
The Future of Petrochemicals report is among the most comprehensive reviews of the global petrochemicals sector, and follows other reports in the series, including the impact of air conditioners on electricity demand, the impact of trucking on oil demand, or the role of modern bioenergy in the renewable sector.
Petrochemicals are particularly important given how prevalent they are in everyday products. They are also required to manufacture many parts of the modern energy systems, including solar panels, wind turbines, batteries, thermal insulation and electric vehicles.

Dr.  Fatih Birol, the IEA's Executive Director said economies are heavily dependent on petrochemicals, but the sector receives far less attention than it deserves. "Petrochemicals are one of the key blind spots in the global energy debate, especially given the influence they will exert on future energy trends," said Birol
He said their analysis shows that they will have a greater influence on the future of oil demand than cars, trucks and aviation. Demand for plastics - the key driver for petrochemicals from an energy perspective - has outpaced all other bulk materials (such as steel, aluminium, or cement), nearly doubling since 2000.
In Kampala, and other urban areas across the country, it is becoming common to see piles of plastics collected by human "scavengers" for sale to recycling firms. Some of the plastics are re-exported to garment firms in China and Japan.  
Globally, advanced economies are estimated to  use up to 20 times more plastic and up to 10 times more fertiliser than developing economies on a per capita basis, underscoring the huge potential for global growth.