Petroleum and Petrochemical Economics

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For 40 years, the Petroleum and Petrochemical Economics (PPE) program has provided highly respected reliable data, insightful analysis and dependable forecasts of the profitability, competitive position and supply/demand trends of the global petroleum and petrochemical industry. 

All commodity sectors of the petroleum, petrochemical, polymer and intermediates industry are included, with over sixty products tracked on an on-going basis.

New to the PPE program in 2017 is inclusion of methanol and key derivatives: formaldehyde, acetic acid and methy tert-butyl ether (MTBE). 

Reports, and the accompanying Online Database, provide global data, analysis and forecasts in two major inter-related areas: Markets and Economics

Markets

Our Market Dynamics reports identify the key issues shaping the industry, providing invaluable support for strategic decision making and business planning.  Analysis is segmented into three principle areas:

  1. Consumption
    Assesses historic and forecast consumption; forecasts are based on projections of economic activity and diverse end use applications across key consuming industry sectors.
  2. Supply
    Identifies all producers, the capacity, location, and process of all current production assets, along with discussion regarding the status of new projects and capacity under construction.
  3. Supply, Demand and Trade
    Provides historical analysis and forecasts to 2035 of consumption, production, imports/exports, inventory build-up/decline, capacity and capacity utilisation.  The analysis provides a key insight into the relative strength of regional markets.

Economics

Analysis is presented in two different reports prepared for each key price setting region (Asia Pacific, Middle East, Western Europe and the United States):

Quarterly Business Analysis provides a key insight into production economics for a broad range of commodity petrochemicals.  The analysis presents a review of costs, prices and margins for typical production assets, providing a valuable view of regional and value chain competitiveness.  A quarterly report provides insightful commentary to illustrate current trends, related to recent market developments.  The accompanying database is updated monthly.

An annual techno-economic evaluation is conducted to ensure the archetype cost models accurately reflect typical regional production assets.  

Profitability Forecast Analysis provide long-term profitability and price projections to 2035 for the major price setting regions under three distinct crude oil scenarios.  Nexant’s robust price forecasting methodology consolidates the many price influences in petrochemical markets.  The methodology has been enhanced over 40 years of industry observations and associated price sets are used extensively to support investment decisions in capital intensive assets with a long production life cycle.

Petroleum & Petrochemical Economics Coverage

Over sixty petrochemicals, polymers and feedstocks are now tracked and regularly updated across the following value chains:

  • Aromatics and derivatives
  • Butadiene derivatives
  • Methanol and derivatives
  • Olefins
  • Polyester and intermediates
  • Polyolefins
  • Propylene derivatives
  • Styrenics
  • Vinyls
  • Petrochemical feedstocks
  • Refined Products