“There is inadequate capacity to meet energy demand with U.S. oil and gas E&P spending falling. U.S. energy policy should be encouraging production for the
February 28, 2022
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“There is inadequate capacity to meet energy demand with U.S. oil and gas E&P spending falling. U.S. energy policy should be encouraging production for the
Global commodity indicators frame an environment of stronger-for-longer product prices in 2022 ahead of a mid-decade global commodity mega-cycle. The period for a potential late
European chemical feedstock values have risen meaningfully since mid-2021, ahead of the recent jolt from the Russia/Ukraine conflict. We view this setting and demand trends
The Russia/Ukraine conflict is giving energy prices a boost, steepening the global chemical production cost curve in favor of US producers. This trend is negative
As diesel belching tanks roll across Ukraine, publishing research on emission abatement feels odd, but the climate challenges will worsen from conflict.
Sector performance
Global market indicators remain favorable for US commodity chemical producers relative to peers in Asia. Though factors are likely to shift by 2H22, a stronger-for-longer
The US commodity chemical production cost advantage remains sizable, and global market indicators support US integrated polymer profit WoW. Our confidence in a mid-decade global
US commodity chemical profit hit record levels in 2021, but strategic M&A is taking priority among producers relative to greenfield expansion. We think this trend
Chemical demand indicators, ranging from US building product market updates to farmer spending trends, broadly remain robust. We add to recent research studying why demand
A significant observation from 4Q business updates is the variation in results and expectations that, in many cases, have changed notably relative to six months
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