Today plastic production contributes about 5% of global carbon dioxide emissions. And our current moment shows how embedded oil and gas products are in our lives. This goes far beyond their use for energy.
As I write this, I’m wearing clothes that contain plastic fibers, I’m typing on a plastic keyboard, and looking through the plastic lenses of my glasses. It is hard to imagine what our world would look like without plastic. And in some ways, moving away from fossil-derived plastics may prove even more complicated than decarbonizing our energy system.
Crude oil prices have been volatile in recent weeks with prices recently reaching above $100 per barrel.
Crude oil contains a vast range of hydrocarbons, and is typically refined by putting it through a distillation unit that separates the raw materials into different fractions according to their boiling points. Those fractions are then processed into everything from jet fuel to asphalt binder. We have already seen prices of some crude oil derivatives, such as gasoline and jet fuel, rise.
Let’s zoom in on another ingredient, naphtha. It can be added to gasoline and jet fuel to improve performance. It can also be used as a solvent or as a raw material for making plastics.
The Middle East currently accounts for about 20% of global naphtha production and supplies about 40% of the market in Asia, where prices are already up 50% compared to last month.
We are already starting to see these impacts subside. The price of polypropylene (which is made from naphtha and used for food containers, bottle caps and even automotive parts) is rising, especially in Asia.
Typically, manufacturers have a little stock on hand, but that will run out soon, possibly in the coming weeks. India’s largest supplier of water bottles recently announced it would raise prices by 11% after its packaging costs increased by more than 70%. Reporting from Reuters. Toys may get more expensive this holiday season, according to manufacturers Struggling with supply chain concerns.
