With the recent fracking boom causing low gas prices, fossil fuel companies are seeking other ways to bolster their profits — by making more plastic.
Just as the world is starting to address its enormous plastic pollution problem, these companies are doubling down on plastic, with huge potential consequences for climate and the environment.
The over-abundance of natural gas has resulted in the lowest gas prices since 2016. Consequently, some fossil fuel companies are being forced to shut down drilling rigs and file for bankruptcy protection. Big companies like Exxon Mobil, Shell and Saudi Aramco, which see signs of a coming decline in fossil fuel use, are compensating for the low prices by investing in plastic production, since plastics are made from oil, gas and their byproducts. As a result, the World Economic Forum expects plastic production to double by 2040.
Natural gas contains ethane, which is a building block of plastic. Because the U.S. has extracted so much ethane with its natural gas, over $200 billion have been invested into 333 new chemical and plastics projects, as of the end of 2019.
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