Supercomputers to Replace Engineers in Oil & Gas Company?

The latest trend in oil and gas companies including some of petrochemical players are setting the horizon for the upcoming age of abundance, and possibly replacing most engineers and skilled individuals in the oil and gas industry by the supercomputers. The likes of BP has spent millions of dollars of building its supercomputer, aimed at seismic imaging and interpreting geological data previously done by groups of skilled geologists. 

BP datacenter in Houston houses 2 petaflops supercomputer which is also used for drilling activities. Already

Indonesia Becoming Petrochemical Net Exporter

Indonesia is fast building its petrochemical industry with the government in planning to bring Indonesia petrochemical output dramatically by 2016 making it a net exporter country in terms of petrochemical products. Through its state oil and gas company, Pertamina, Indonesia is gazetting two major petrochemical hub in Muara Enim and Bintuni Bay for production of methanol, ammonia, polypropylene and polyethylene. 

The government is looking at putting up world scale refinery and petrochemical cracker with a foreign partner. South Korean Honam Petrochemical and PTT Chemicals are some of the potential partners with Pertamina. Indonesia government is also announcing considerable tax breaks to attract foreign direct investment for its growth in the petrochemical industry.

Indonesia's Pertamina To Become Asia Oil & Gas Major in Asia

Pertamina, Indonesian state oil company which was once considered a pioneer in government-owned oil and gas major is setting a goal to become the Asia's biggest oil and gas player by 2025. The announcement came after a recent announcement that it is currently looking at petrochemical partner to further add value of its downstream petrochemical business. 

 Pertamina owns many of Indonesia's refineries and is venturing into partnership with PTT Global Chemical into bringing alive its petrochemical business again. Many considered Pertamina demise was due to the influence of Indonesian government into its business during its peak.

Petchem Plant: US Capitalizing Shale Gas - Mitsubishi Building a US Resin Plant

US is capitalizing and promoting the use of shale gas in its petrochemical downstream production. Mitsubishi is reportedly in planning to set up a resin processing plant in the US that takes the feedstock from a "cheap" shale gas. 

The plant is said to obtain the feedstock from Dow Chemical which is building a cracker to produce ethylene from the US shale gas. The new plant will be commissioned in 2017 producing 250 ktpa of acrylic resin.

Malaysian Politics Pull Both Strings on PETRONAS

Malaysia politics from both end of the string, ruling and opposition are trying to impose power on PETRONAS as the Malaysian poll is approaching. The opposition led by Anwar Ibrahim is asking for change of PETRONAS policy, a state oil and energy company, towards boosting overseas expenditure.

He calls for reduction of PETRONAS dividend to the state but also a change in policy of payment according to certain percentage. The announcement is seen to also impact many of PETRONAS project in domestic Malaysia especially the new mega refinery-petrochemical project in southern Johor, a the tip of the peninsular Malaysia, at the Pengerang site. 

 The project which involves numerous of parties and commercial partners will be subject to the opposition review of viability and will call for certain transparency. The announcement comes to a no surprise to industry analysts which foresee that new political power will play its role on the country's biggest state company. There is likelihood that the new marginal fields in the domestic Malaysia will require further review.

Market History: Top 20 Petrochemical Companies in 2012

As we are approaching the end of 2012, let's have a look at the list of top petrochemical companies. The list is for Dec 2011 year end, consolidated in 2012. BASF of Germany maintains its top position of top spot for biggest petrochemical company in the world followed by Sinopec which slightly topples Exxon Mobil for a second place.

Global Ranking	Petrochemical Company	Revenue in US$ Million for 2011
1	BASF	95,245
2	Sinopec	65,752
3	Exxon Mobil	64,731
4	Dow Chemical	59,985
5	Lyondell Basell Industries	51,035
6	SABIC	50,636
7	Shell	46,963
8	Mitsubishi Chemical	38,713
9	DuPont	37,961
10	INEOS	27,529
11	Total	26,839
12	Bayer	24,975
13	Sumitomo Chemical	23,505
14	Akzo Nobel	20,342
15	LG Chem	19,580
16	Johnson Matthey	19,252
17	Toray	19,170
18	Air Liquid	18,735
19	Evonik	18,308
20	Linde Group	17,867

Sabic Building Ultra-high Molecular-weight Polyethylene Plant

Sabic through its two affiliates are building a 35 ktpa ultra-high molecular-weight polyethylene (UHMWPE) plant in Jubail, Saudi Arabia which will be located at Kayan Petrochemical Complex. The plant is expected to be commissioned in 2014.

Mitsubishi Building A Methanol Plant in Trinidad Tobago

Mitsubishi is planning a methanol plant which will be the feedstock for its downstream petrochemical products. The plant, which will convert methanol to DME (dimethyl ether) will be built in La Brea, Trinidad and Tobago. The project is estimated to cost around USD 850 million.