Petrochemicals as a product play a very significant part in the development of products for the chemical industry. They are the building blocks for majorly most of the products commercialized in the market. Petrochemicals basically are the chemical compounds sourced from petroleum, fossil fuels and renewable sources such as corn, sugarcane and biomass variants. Petrochemicals are the second-tier goods derived after numerous refining processing on crude oil.
Petrochemical products are segregated into three major categories:
1. Olefins – ethylene & propylene are used in manufacturing of various industrial chemical as well as other plastic product, whereas butadiene is utilized in the production of synthetic rubber
2. Aromatics – Benzene finds its usage in the production of dyes and various other daily use synthetic products; Toluene is used as a solvent for various products such as thinners, nail polish remover, glues and fluids; Xylene is the source material for the production of plastics and synthetic-based fibers
3. Synthesis Gas – is categorically defined as the mixture of carbon monoxide and hydrogen which finds its application in the development of methanol and ammonia. These products find their uses in respective fields. Ammonia is utilized as a fertilizer, whereas methanol is utilized as an intermediary for manufacturing of chemical products as well as being a solvent
The above mentioned products only cover the broad-scale uses of petrochemicals, and not the in-depth application areas. Although, petrochemical industry only constitutes a small share of petroleum industry as a whole, whereas the products derived from petrochemicals constitute more than half of the share of the raw materials utilized for the production of various end-use products in the market, such as plastics, agricultural goods, packaging products, digital & electronic devices, synthetic detergents, rubber products to name a few.
Even with the major environmental concerns for plastics, the market is growing at a significant pace, resulting in greater consumption than steel, aluminum, and other bulk materials. This demand is set to expand for the foreseeable future as well, because of the lack of alternative to plastics that can immediately take over its significant demand.
Conclusion
The widespread utilization of petrochemicals as a raw material and having a part in the production in the various respective fields is one of the major trends being associated with the growth of the market, where major manufacturers are shifting or expanding their geographical presence to be present closer to the feedstock i.e., petroleum. This is inducing major petroleum manufacturers into expanding their capabilities from petroleum suppliers and stepping into petrochemical industry.
Currently, though the market is not under threat due to various changes in the production process arising from technological developments. This transformation has resulted in greater volumetric production of petrochemicals, although in the coming years the market might be under threat which would give rise to major manufacturers adopting analytical services to overhaul their manufacturing systems.
One of the major threats impacting the market of petrochemicals is the major environmental concerns associated with their extraction and production. Due to the utilization of fossil fuels, crude oil and the creation of waste associated with the production process the market is being severely impacted with environmental concerns. The major concern for the petrochemical industry is reducing the raw materials consumption such as water, crude oil, and other human resources.
