The Dark Side Of Oil: Plastic Production's Impact

Plastic production and oil demand are intertwined, with oil being a key raw material in the production of plastics. As of 2019, 9 million barrels of oil were used to make plastics every day worldwide, with the International Energy Agency expecting this to rise to almost half of oil demand by the 2050s. The US uses about 12 million barrels of oil annually to produce plastic bags, and 17 million barrels to produce plastic water bottles. While the US Energy Information Administration does not track total oil-to-plastic usage domestically, it is known that the portion of oil used for plastic production in Europe averages between 4% and 6%. The link between plastic and oil is concerning, as global emissions linked to plastic are already at almost 900 million tons of carbon dioxide equivalent annually, and the fossil fuel and petrochemical industries are investing billions in new plants to produce more plastic.

Plastic bags in the US are made from 12 million barrels of oil a year

Plastic is a product derived from oil, among other sources. Crude oil, which is made from animal and plant matter that has endured heat and pressure underground for millions of years, is a source of raw material (feedstock) for making plastics. However, it is not the major source of feedstock for plastics production in the United States. In the US, most domestic plastic is derived from natural gas, which is itself produced from crude oil refining.

The link between plastic bags and oil is significant. In the US, plastic bags are usually made from petroleum, a product of crude oil. It is estimated that about 12 million barrels of oil a year are used in making the plastic bags used in the US. This is a huge number, considering that the US throws away an estimated 100 billion plastic bags annually. An average American throws away about 10 bags a week, which amounts to 520 bags a year – the fuel equivalent of 60 miles of driving.

The production of plastic bags and the consumption of oil are closely intertwined. For instance, during the 1973 US oil crisis, when oil became scarce and expensive, plastic production slowed down due to a lack of raw materials. The International Energy Agency (IEA) predicts that the demand for plastic will make up nearly 50% of oil demand by the 2050s, despite the finite nature of this resource.

The environmental impact of plastic bags is notable, and plastic bags are notoriously difficult to recycle. While some plastic bags are recycled into composite lumber, which is used for decking, door and window frames, and park benches, the vast majority end up in landfills. This has led to a growing movement to ban or reduce the use of plastic bags, with cities like Chicago and New York implementing plastic bag bans to mitigate their environmental impact.

The US uses 17 million barrels of oil for plastic water bottles

Plastic is made from oil, and it takes a significant quantity of energy to transform oil into plastic as well as ship, store, and cool bottled water. The US market for water bottles requires 17 million barrels of oil, according to a 2007 estimate by the Pacific Institute. This amount of energy could power up to 1.3 million automobiles for a year.

The Pacific Institute's research found that it took 17 million barrels of oil to produce plastic for bottled water consumed by Americans in 2006. This was enough energy to power more than 1 million American cars and light trucks for a year. The widely cited 1.5 million barrel statistic is an error that occurred due to a miscommunication between a journalist and a researcher in 2003.

The International Energy Agency (IEA) predicts that plastics will account for nearly 50% of oil demand by the 2050s. This is significantly higher than the current demand, and the global supply of crude oil may only be able to meet our demands through the middle of the century. The IEA also stated that 9 million barrels of oil are used to make plastics every day globally as of 2019.

Although crude oil is a raw material for making plastics, it is not the primary source of feedstock for plastic production in the US. Natural gas and feedstocks derived from natural gas processing and crude oil refining are used to make plastics in the US. The US Energy Information Administration (EIA) is unable to determine the specific amounts or origins of the feedstocks used to manufacture plastics in the country.

Plastic made from oil drives huge demand in the oil industry

Plastic is made from oil, and this drives huge demand in the oil industry. The biggest group of plastics are synthetic plastics, which are most often made with petroleum in China, Europe, Southeast Asia, and Japan. Petroleum, or crude oil, is made from animal and plant matter that undergoes heat and pressure underground for millions of years.

The International Energy Agency (IEA) predicts that plastics will make up nearly 50% of oil demand by the 2050s. This is a significant increase from the current worldwide average of around 6%. For example, during the 1973 U.S. oil crisis, when oil became scarce and expensive due to an embargo by the Organization of Arab Petroleum Exporting Countries (OAPEC), plastic production slowed down due to a lack of raw materials.

The link between oil and plastic is evident in the production of plastic bags and water bottles. In 2019, the then-governor of New York, Andrew Cuomo, stated that the U.S. alone uses about 12 million barrels of oil annually to produce plastic bags. This is in addition to the estimated 17 million barrels of oil used each year to produce plastic water bottles, according to a 2007 estimate by the Pacific Institute.

The production of plastic is not limited to crude oil but also includes natural gas and other feedstocks derived from natural gas processing and crude oil refining. The flexibility in feedstock sources makes it challenging to determine the exact amounts and origins of the materials used in plastic manufacturing. However, the increasing demand for plastic contributes to the oil industry's growth and drives the need for oil as a raw material.

Major oil companies are investing in new petrochemical plants to increase their plastics output. This expansion is driven by the concern that a global response to climate change might reduce demand for their fuels. As a result, companies are pouring billions of dollars into new plants to produce even more plastic.

The US gets its plastic feedstock ethane from fracking

The use of oil in the production of plastics is a significant concern, with the International Energy Agency (IEA) predicting that plastics will make up nearly 50% of oil demand by the 2050s. This is reflected in the fact that as of 2019, 9 million barrels of oil were used to make plastics every day worldwide.

However, the US is increasingly sourcing its plastic feedstock from another source: ethane, a gas liquid produced through natural gas fracking. Fracking in the US has led to a boom in the availability of ethane, a common raw ingredient in petrochemicals and plastics. This has made it an attractive feedstock for the plastics industry, as it is chemically efficient and inexpensive, allowing plastics to be manufactured more profitably.

The development of new plants that convert directly from crude oil to plastics has been prompted by the anticipation of a shift from fossil fuels to electric vehicles. However, the US petrochemical and plastics sector has also undergone a major shift in the last decade, with large volumes of ethane becoming available for plastics production through fracking technologies. This has resulted in an expansion of the industry, with companies investing over $200 billion in 333 plastic and other chemical projects in the US since 2010.

The US is now a big growth area for plastic production, with companies like Shell building multi-billion-dollar chemical plants to convert ethane into plastic. This has led to concerns about pollution and the environmental impact of the ethane-to-plastics industrial production network, particularly in areas like "Cancer Alley" along the Gulf Coast of Texas and Louisiana, and in rural areas where fracking is driving expansion. Despite these concerns, the availability of cheap ethane from the US fracking boom is fueling plastics production not only domestically but also overseas, with companies shipping ethane to chemical plants in Europe, Brazil, India, and China.

The International Energy Agency expects plastics to make up half of oil demand by the 2050s

The International Energy Agency (IEA) has predicted that by the 2050s, nearly 50% of oil demand will be for plastics. This is a significant increase from the current worldwide average of oil used in plastic production, which sits at around 6%. In 2010, the IEA estimated that around 191 million barrels of oil a year (approximately half a million a day) were used to create plastic. As of 2019, this figure had risen to 9 million barrels of oil a day.

The US Energy Information Administration (EIA) does not track total oil-to-plastic conversion domestically, so it is unclear how much petroleum from the US is used for plastic production. However, it is known that the US uses about 12 million barrels of oil a year to produce plastic bags, and 17 million barrels a year to produce plastic water bottles.

The IEA attributes the expected increase in petrochemical demand to the rapid growth of emerging economies, such as India and China. Petrochemicals are derived from oil and gas feedstocks, which form the building blocks for a wide range of products, including plastic bottles, beauty products, fertilisers, and explosives. Despite government efforts to curb carbon emissions, the IEA predicts that recycling will only meet around 5% of high-value chemical demand.

The extensive refining process that fossil fuels undergo to become plastic polymers further complicates the issue. Natural gas, for example, undergoes steam cracking to become a plastic polymer. The IEA has identified the petrochemical sector as a blind spot in the global energy debate, and IEA Executive Director Fatih Birol has stated that it will be the key driver of oil demand growth for many years to come.

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