Plastic recycling threatens oil demand growth
Technology developments could take a chunk out of demand forecasts, but the impact may be just to moderate growth rather than shrink overall demand
Plastic recycling has the potential to displace some future assumed oil demand growth. But, unless the most optimistic technology assumptions come to pass, overall thirst for oil from the plastics industry may continue to grow, with recycling simply moderating the pace. Currently, 85pc of the world’s plastic is incinerated, dumped into landfills or ends up in the oceans. Just 18 developing countries contribute 80pc of this global mismanaged plastic waste. China is by far the largest contributor on 28pc, followed by Indonesia on 10pc. On the demand side, c.9mn bl/d of oil is used to make plastics at naphtha crackers in China, Europe and emerging Asian economies, according to research earlier
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
