How Fracked Gas, Cheap Oil, and Unburnable Coal are Driving the Plastics Boom

The report details a global surge in plastics production capacity driven by cheap fossil fuel feedstocks. In the US, shale gas has led to planned investments of $164 billion for 264 new or expanded facilities. China is heavily investing in carbon-intensive coal-to-olefins technology to overcome a lack of natural gas. Meanwhile, the Middle East continues to leverage oil and gas, and Europe is seeing new investments enabled by US liquefied natural gas shipments. The report warns that this capacity expansion could lock in high plastic production for decades, exacerbating environmental pollution and the climate crisis.

• The United States is experiencing a massive investment wave in plastics infrastructure due to cheap shale gas, with the American Chemistry Council projecting $164 billion in spending on 264 new facilities or expansion projects by 2023.
• China is aggressively expanding its plastics capacity, specifically as the world's leading propylene producer, and is investing heavily in coal-to-olefins (CTO) technology to utilize its coal oversupply, despite the process being highly carbon-intensive.
• Global production capacity for the primary plastic feedstocks, ethylene and propylene, is projected to increase by 33% or more by 2025, with ethylene rising from 170 million to 230 million metric tons and propylene from 120 to 160 million metric tons.
• New investments in the European chemicals industry, such as those by INEOS in Belgium, Scotland, and Norway, are being enabled by the ability of American companies to ship liquefied natural gas across the Atlantic.
• The Middle East has seen significant olefin capacity expansions, including the $20 billion Sadara Chemical Company joint venture in Saudi Arabia, though some analysts suggest the era of massive new projects in the region may be slowing.
• The report argues that the current surge in production capacity risks 'locking in' a fossil-fuel-based plastics economy for decades, which will likely lead to increased environmental contamination and the creation of new markets to absorb the oversupply.

APA

Center for International Environmental Law (n.d.). How Fracked Gas, Cheap Oil, and Unburnable Coal are Driving the Plastics Boom. https://www.ciel.org/wp-content/uploads/2017/09/Fueling-Plastics-How-Fracked-Gas-Cheap-Oil-and-Unburnable-Coal-are-Driving-the-Plastics-Boom.pdf

Chicago

Center for International Environmental Law. How Fracked Gas, Cheap Oil, and Unburnable Coal are Driving the Plastics Boom. n.d. https://www.ciel.org/wp-content/uploads/2017/09/Fueling-Plastics-How-Fracked-Gas-Cheap-Oil-and-Unburnable-Coal-are-Driving-the-Plastics-Boom.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=How Fracked Gas, Cheap Oil, and Unburnable Coal are Driving the Plastics Boom |url=https://www.ciel.org/wp-content/uploads/2017/09/Fueling-Plastics-How-Fracked-Gas-Cheap-Oil-and-Unburnable-Coal-are-Driving-the-Plastics-Boom.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallawndhow, author = {{Center for International Environmental Law}}, title = {{How Fracked Gas, Cheap Oil, and Unburnable Coal are Driving the Plastics Boom}}, institution = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2017/09/Fueling-Plastics-How-Fracked-Gas-Cheap-Oil-and-Unburnable-Coal-are-Driving-the-Plastics-Boom.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }