There is an increased awareness about the environmental damage caused by plastics in one form or another. Most plastic is made from petroleum. Every year, 1.5 million barrels of crude oil are used to make plastic bottles in the U.S. alone.
The plastic ban can dent oil demand growth
Oil giant BP has predicted that tougher regulations on plastic around the world will result in decreased global demand for oil.
BP’s chief economist, Spencer Dale, predicted that global demand for oil could be impacted by as much as 2 million barrels per day by 2040 due to global efforts to regulate petrochemical products, particularly single-use plastics.
The UK-headquartered oil and gas firm also predicts that oil production will continue to rise over the next two decades until the late 2030s.
But these are only predictions
Predictions should always be taken with a heavy pinch of salt. In fact, BP just revised down its growth forecast of renewable energy from previous years, now estimating that renewable energy will constitute 40 percent of all energy growth in the near future.
BP chief executive officer Bob Dudley said, “We cannot predict where these changes will take us, but we can use this knowledge to get fit and ready to play our role in meeting the energy needs of tomorrow.”