It also acknowledges the “efforts” of companies such as ExxonMobil, Shell and TotalEnergies, as they aim to establish circular economy for plastics “as a commodity”.
GlobalData has said that of the industry’s conventional products, plastic is arguably the most relevant to circular economy. Increasing demand fo circular economy solutions in oil and gas is said to present long-term opportunities for companies. These companies can invest in the production of circular polymers, therefore making it easier to recycle plstics.
The report suggested that there is “considerable scope” to increase companies’ recycling capacities, allowing them to “reduce virgin plastic production”.
‘Remedy the situation’
Ravindra Puranik, oil and gas analyst at GlobalData, added: “The use of plastics has skyrocketed in the last few decades and has accelerated plastic pollution in the soil and aquatic environments. As awareness about the ill effects of plastic use grows among consumers, several countries and some enterprises are taking steps to remedy the situation, while ensuring the economic activity remains unaffected.”
Puranik continued: “Several economies are taking steps to limit their plastic pollution and encourage circularity. The European Union has set specific targets to reduce the use of single-use plastic in its jurisdiction. Countries in other regions, such as Japan and Australia, have also set targets to eliminate plastic waste generation.
“Companies are working to find suitable alternatives, to minimise the dependence on plastic made from conventional methods. The use of bioplastics is an emerging trend in the industry. Bioplastics are produced using alternative feedstock such as agricultural waste. Industry leaders such as BP, Shell and TotalEnergies, have set themselves targets for plastic recycling. Companies are pursuing approaches such as mechanical recycling, chemical recycling, besides bioplastic production to support their ESG commitments.”
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