Covid-19 may have done permanent damage to oil consumption in the transport sector. Some analysts see global oil demand peaking later this decade, while others believe it may never return to the giddy heights of 100 million barrels per day (b/d). But strong growth in petrochemicals use could delay peak oil demand for a couple of decades.
Platts Analytics sees continued growth in long-term petrochemicals demand as potentially delaying peak oil demand to 2021. Indeed, many plastics have sustained net positive growth even during the downturn over the past few months.
The International Energy Agency is also skeptical of those writing the obituary for oil demand growth. “If oil demand goes back to 100 million b/d I would not be surprised. And under a strong recovery, I would not be surprised if it went higher than that,” said its head, Fatih Birol, in early July.
PetroNeft Resources plc (LON:PTR) is an international oil and gas exploration and production company, focussed on Russia. The company’s s shares are listed on the London AIM and Dublin ESM Markets.