Plastics and the sustainable future of the petrochemical industry

Abstract

As the transport sector becomes increasingly electrified, oil demand is expected to decline over the next few decades. The oil and gas industry's response can be summarized in one word: Plastics. Petrochemicals could be the industry's "lifeline". However, industry players will need to shift to sustainable strategies to ensure long-term competitive advantage. This dissertation examines the impact of sustainability initiatives on the petrochemical industry and drivers of long-term competitive positioning for industry players related to sustainable plastics alternatives. First, current literature on sustainability initiatives in the petrochemical industry and strategic literature concerning competitive advantage and sustainability werereviewed. Primary data was gathered through expert interviews and a survey with experts from the petrochemical industry and management consulting. Finally, all findings were leveraged to develop a scenario analysis for the industry. The findings revealed that the industry will experience a significant shift to a circular economy to mitigate waste pollution. Recycled and renewable feedstock for plastics will pave the industry’s way to decarbonization. However, to successfully transition to net-zero and no waste, petrochemical companies will have to rely on collaboration along the entire value chain.

Date of Award	30 Jun 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor)