America's Leg Up on Petrochemicals || Apr. 23, 2026
The Iran War has caused a massive disruption in global petrochemical production. Since most of the world relies on oil-derived naptha, the ~12 million barrels/day shortage is taking a toll.
Many countries in Asia and Europe are beginning to feel the pressure, but the U.S. has a leg up on everyone else. Thanks to the shale revolution, America's cheap and abundant natural gas is used to produce its petrochemicals. This has enabled the U.S. to avoid shortages and become a dominant global supplier of key petrochemical inputs.
Nearly every industry, from plastics to fertilizers, is impacted by these materials. So, the global industrial landscape is getting shaken up once again.
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Comments (42)
How are we doing on jet fuel? Will it impact airline ticket prices in North America? All sorts of flights & routes getting cancelled in the Philippines right now
It is spelled "naphtha".
No biggies...😆
Sounds to me like just another reason to detest America. Keep stacking up those victories, the rest of the world is counting.
it's not victories, it's disruptions for others and profit for themselves.
And here i am watching my goverment sell our natural gas for nothing.
Good one Ribbon, so blame the Australian government for the US caused disaster.
For $5 a month your Patreon is worth it, but not for $15. I’ll just wait a couple of days and it’ll be on YouTube.
I wonder if the Middle Eastern natural gas supply takes as long as oil to come back online if it were shut off.
There’s half a dozen or more people on the internet machine I don’t mind supporting. Peter is one of them. Keep on keeping on Peter.
This was a good post !! Zoomed out and looking at the big picture. I like this far more than the repeating of Trump surrounds himself with yes people, and all who mattered were fired with no replacements. etc.. I can get that for free... This post is what I like to pay for.
I wonder if the narrative about Israel leading Trump by the nose into this war is just a smokescreen. Perhaps it was his buddies in the oil and petrochemical industries that have been leading him by the nose. I wonder how many megabucks Trump, his family, and his ass-kissing cohorts have invested in this area?
I'd like to hear your perspective on the irgc not pursuing negotiations because they believe they are in an existential battle and what they and China might be concocting on the quiet.
You in walla walla! That's like right next door!
Buy any onions in Walla Walla Peter?
So, we have basically "beggared" our global allies and trading partners to make a quick buck. Do i have that right?
Your question presumes that the Trump administration thought that far ahead. There is no evidence for this.
Well everybody hates us but we have oil...
so interesting - would like to hear more downstream effects - since we import so many everyday products - how will our petrochemical benefit help? Since we have little of the needed manufacturing base to take advantage. Or is this just going to make the rich oil barons richer. Meanwhile Americans can't find any product they need that is made out of all these petrochemicals.
This comment coming in from 1890.
According to the chart, Propylene is NOT derived from natural gas. Only Ethylene, C4, and Pygas can be derived from natural gas.
https://www.thechemicalengineer.com/news/us-designed-natural-gas-reactor-heats-up-alternative-propylene-production/ April 2024
Every time I’m reminded of how much oil, food and other resources North America has an abundance I’m reminded of the Otto von Bismarck quote "God has a special providence for fools, drunkards, and the United States of America."
Peter. What are your thoughts on Carneys announcement for an LNG facility on Hudson Bay. Big talk up here. Tidewater for the prairie provinces & Artic security?
I think I've misunderstood some aspects of this video. I thought the US exports about 100MTPA of LNG per year, while Australia exports 80MTPA of LNG per year. While the US refines this domestically into petrochemicals... There are a number of countries (Japan, China, etc) that refine LNG into petrochemicals, such as LNG from Australia. Why would that become a US monopoly? Yes, Qatar was a big LNG exporter, but certainly not the only one.
Peter: Can you post that Petro Chemicals chart so that we can download it?
Just added it!
This is going to be the US Vs the rest of the world.
Or the rest of the world vs. Iran, the direct cause of the issues in the Strait.
OMG OMG OMG So Donny did somehting good for the US? But Pete couldn't acknowledge that of course.
I already see maga people would say how Trump played chess where others played checkers. This was plan all along,but nobody really got it. And now we got us all this advantage , and all because of forward looking policies of Trump administration under wise guidance of POTUS himself.
You know it; It's the "Plan". Our dear leader is playing the long game. He glows with BRILLIANCE. So..., pass the Coolaid, Bubba.
And the rest of the world is going to thank the US for potentially gouging for petroleum products that are in short supply due to this fiasco?
Only partly. The rest is Russia. Unless you're one of those it is "your fault for existing" people.
It's very likely in fact Peter that this, not nuclear proliferation, was the very purpose of the war. Especially if you consider Russian sanctions, Ukraine attacking Russian refineries and Nordstream. 🤔
no it is not, Trump is too stupid for this
Hummm. America First?
Its almost as if the US did this on purpose!
Will our almost exclusive advantage hurt Iran?
Just wondering how the side effects of the US having the only functioning petrochemical industrial base square with the recent posting - "The End of American Power"
I feel like this is going to result in like an aspiring Indonesian businessman confronting a young, impressionable college graduate by the pool one evening: “I just one to say one word to you Agus. Just one word… Seaweed.” And then thousands of others that offer non-petroleum based solutions to modern life.
Norway collects seaweed for a lot of products, in large quantities it leads to the destruction of the ecosystem that needs the seaweed fields underwater for their life cycle and food. Gathering is allso energy intencive. Petroleum is what keeps the world go round. Lets hope Venezuela back online can relive a lot of the issues in a 12-60 month period.