Future of petrochemical raw materials in oleochemical markets

Abstract

The petrochemical industry (PCI) has undergone profound changes during the last decade and is continuing to adjust to changing world economic conditions. One of the most important of these is the price of crude oil. Although an equilibrated pricing structure remains to be demonstrated, anticipated adequacy of supply and versatile, innovative methods of converting crude and natural gas to high valued products assures it a vital and healthy future. The product areas in which the PCI and the oleochemical industry (OCI) overlap are actually quite small in terms of the total capacity. In those limited areas of overlap, we expect the role of the PCI during the next several years to continue to be cone of a complementary nature. By providing security of supply at competitive prices, it will create confidence and reliability which will benefit both the petrochemical and oleochemical industries. And most significantly, the resources of the petrochemical industry will also allow it to respond to new market conditions, particularly those of accelerated volume needs and specific performance, with the flexibility and creativity which have been its hallmarks. © 1984 American Oil Chemists' Society.