Petroleum liquid feedstock is commonly used to generate the energy required to produce petroleum products. They are available as naphtha and gas oil, which can be further subdivided on the basis of ethylene, benzene, naphthalene, propylene, and hexane, for various purposes such as industrial solvents, petrol additive, gas, or cleaning liquids. Moreover, depending on the source, these feedstocks can also be segregated into wood, petroleum, or coal naphtha.
Global Dependency of Petroleum Boosts Requirements
The growth of the petroleum liquid feedstock market continues to largely rely largely on world’s high dependency of petroleum products for power production. Moreover, with the constantly expanding influence of the automobile industry, the consumption of petroleum liquid feedstock is expected to rise for the foreseeable future. This growth is further anticipated to be augmented by the high global commercial and industrial activity, and also the increasing use of these feedstock in the production of gasoline and synthetic aromatics.
As per a recent study by Future Market Insights on the global petroleum liquid feedstock market, in comparison to light naphtha, the applications of heavy naphtha are anticipated to rise significantly in the near future. Fuel and aromatics manufacture have been observed to be the primary drivers for the increased opportunities of petroleum liquid feedstock producers. While heavy naphtha is primarily used in refineries, it is also now being used as a reformer feed in the development of high octane gasoline as well.
Demand for Feedstock Rises with Applications of Heavy Crude Blending
The consumption of light naphtha is estimated to rapidly increase across the world, with the exception of the exception of Canada and the United States, largely owing to their movement from traditional petrochemical production processes to the use of steam cracking procedures.
The demand for petroleum liquid feedstock are currently arising from emerging economies in Asia and the Middle East owing to continual industrial expansion. On the other hand, the consumption of light naphtha is seen to be rising in North America, owing to its increased application for diluting heavy crude oils in the blending process in gasoline production and the isomerization of such fuels during enhancement process with the inclusion of octane additives. This is anticipated to positive influence petroleum liquid feedstock producers in the future.
Shale Gas Production Generates Innovations in Feedstock
Currently, the growth of the shale sector in North America has disrupted the worldwide chemical sector. Shale has enabled North America to join the Middle East in leadership for cost-effective production of ethylene. Moreover, the direct conversion of crude to chemicals provides the industry with savings in the cost of naphtha feedstock, in addition to reducing energy consumption and emissions by simplifying the process of naphtha production.
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