In this article, we will discuss the global variables which affect the bitumen and oil market, bitumen sellers, and bitumen demand. We also propose a highly probable prospective for the situation of bitumen sellers in the next year.
The importance of the oil and bitumen market
As we all know, oil and gas are the most important sources of human energy today; since crude oil supplies 37%
and natural gas 21% of the world’s energy. Therefore, oil and gas are of strategic importance in the economic-political equations
of the world and can play a major role in the process of international relations.Generally speaking, the countries of the world drop into two groups in terms of energy reserves:
The first group, which consumes the most energy in the world, has a small share of world oil and gas reserves.
For example, the OECD group of industrialized nations, which burn about 62 percent of the world’s oil,
has only 7 percent of its oil reserves.These countries meet 34% of their needs from oil-rich countries
and are in dire need of the second group of countries with oil and gas reserves to supply their energy. In this group, Middle Eastern countries with 48% of the world’s
oil resources consume only 9% of this energy, and with 43% of the world’s gas resources,
only 14% of the world’s total gas consumption exists in this region.
Global oil consumption of bitumen sellers rate
Moreover, with only 1 percent of the world’s oil reserves, the European Union consumed 14 percent of the world’s oil in 2014. Similarly, the European Union accounts for 14%
of the world’s gas consumption, accounting for 2% of the world’s gas reserves. Studies show that in 2014,
94 million and 929 thousand barrels of crude oil were refined daily in the world. The Asia-Pacific region with a capacity of 31 million and 284 thousand barrels has a share of 33% of the world’s total refining capacity. On the other hand,
North America, Europe and Eurasia are in second and third place with 22.5% and 19%, respectively. The Middle East’s bitumen sellers also account for only 9% of the world’s refining capacity.
The importance of the petrochemical market in the world
In recent years, petrochemicals have been affected by globalization policies as well as the integration of supply, production and sales chains. In fact, the dispersion of production resources
(raw materials, human and financial capital, technology) in different parts of the world,
and the maturity of countries and companies involved in
the petrochemical industry and bitumen sellers has led to cooperation in recent years.
It’s worth mentioning that only 6% of the energy used in the world in 2014 as feed entered the petrochemical industry,
which with this minimal share in consumption, among other areas of energy consumption,
has created the maximum share in value-added production. Besides, the total value of manufactured products
in the world petrochemical industry is about $ 3.2 trillion. The dependence of all industries on petrochemical products
as well as the high diversity of products in this industry has made the countries of the world have a special focus on this sector.
More specifically, several factors have affected the petrochemical industry:
Economies of Scale
The economy of diversity
Crude oil prices
Development of Shale Gas
Maximum exploitation of coal resources in China
It’s essential to know that the world’s largest petrochemical companies and bitumen sellers for sustainable development,
well identify and analyze each of the
above variables and put the necessary measures to actively deal with each of the above, in their agenda.
For instance, each of the bitumen sellers companies,
in order to increase profit margins and, of course, to ensure stability in the supply of production inputs,
has developed a product value chain (Backward & Forward Integration) as well as developing cooperation with
companies and countries with production resources.
For this reason, many large and multinational companies that have owned various petrochemical complexes
around the world to increase their productivity and production efficiency, sell these complexes or
buy other complexes have a supply and production chain integration approach (vertical and horizontal integration).
Bitumen sellers in the European Union
Geographically speaking, the European Union, made up of 28 European countries with a population of more than 500 million,
is in continental Europe as a political and economic union. Furthermore, the European Union has 1% of the world’s oil reserves,
2% of its gas reserves and 5% of its coal reserves. Meanwhile, this region of the world has a 14% share in the world’s
annual oil consumption and also a 14% share in world gas. The above statistics show that this region of the world,
despite having less access to hydrocarbon resources,
the region consumes a significant amount of world oil and gas.
In 2014, this region produced 19 million and 264 thousand tons of ethylene in the world. Keep in mind that 71% of the ethylene produced in this region is from naphtha. To be more specific,
16% was from liquefied petroleum gas (total propane and butane) and only 8% was from ethane.
These statistics show that this region has produced a smaller share of ethylene
production than ethane compared to other parts of the world, including North America and the Middle East.
In fact, the European Union provides the feed needed by steam cracking units by importing crude oil and converting it into naphtha slices. 58% of the ethylene produced in this region
converts to different grades of polyethylene, 14% to ethylene dichloride (EDC) and 11% to ethylene oxide.
Petrochemicals market in the European Union
Propylene production in 2014 in the European Union was 13 million 668 thousand tons per year. In addition, 74% of the propylene produced in this area is dependant on the steam cracking process
and 22% is refinery flow recovery (FCC unit). Besides, 59% of the propylene produced in this
region converts to polypropylene and 14% to propylene oxide.
According to reports, the European Union produced 2.43 million tons of methanol in 2014. 47% of the methanol produced was on natural gas feed and 46% on heavy hydrocarbon liquids. In 2014, the European Union bitumen sellers
consumed 6 million and 791 thousand tons of methanol, which shows that the region is an importer of methanol. Formaldehyde with a share of 46 percent,
biodiesel with a share of 13 percent and methyl tertiary butyl ether with a share of 10 percent are in the first to third ranks of methanol consumption.
As the final point, 6 million and 793 thousand tons of benzene were produced in the European Union. 59% of the benzene produced is from pyrolysis gasoline (pygas)
cuts produced in steam cracking units and 28% from reformed cuts. As a matter of fact, Ethylbenzene
consumes 46% and Cumene 24% of the benzene produced in this region.