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Oil companies: Why investment in petrochemicals is considered risky

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Published: December 5th, 2024,
Last updated: May 28th, 2025

Demonstration for an ambitious plastics agreement during the UN negotiations in Busan. The summit also failed due to the blockade by oil states.

Oil companies overestimate the chemical industry’s future demand for their products. This means they are taking a high investment risk. This is the conclusion of a new report by the British think tank Carbon Tracker. The background: IEA forecasts predict that global fossil fuel demand will peak by the end of the decade and then decline. However, the IEA expects demand for liquefied natural gas in the petrochemical industry, in particular, to continue to grow.

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