Oil's Hidden Role in Modern Manufacturing: The Petrochemical Connection
Oil's role in modern manufacturing extends far beyond fueling transportation. A significant portion of crude oil is refined into petrochemical feedstocks, which are then converted into essential building blocks for various products.
These petrochemicals are used to manufacture plastics, synthetic fibers, and rubber, among other materials. According to the International Energy Agency (IEA), petrochemicals accounted for about 16% of global oil demand as of 2025.
The IEA projects that this trend will continue through 2030, with petrochemicals driving oil demand growth. Much of this growth is expected to come from Asia, where factories rely heavily on these materials in their production.
Canada is likely to play a significant role in meeting this growing demand, as the share of Canadian crude oil exports shipped to Asia has increased significantly since 2015.