Who controls the global petrochemical industry, and how might that change?

Abdullah AlHassan, Luc Leruth, Adnan Mazarei, Charles Meuwly, Joseph Moussa and Pierre Regibeau
Additional contact information
Abdullah AlHassan: International Monetary Fund
Luc Leruth: University of Clermont Ferrand
Charles Meuwly: ZENO-Indices
Joseph Moussa: International Monetary Fund
Pierre Regibeau: Warsaw School of Economics

No WP26-4, Working Paper Series from Peterson Institute for International Economics

Abstract: Key Takeaways - A small group of large firms dominates the global petrochemical industry, with ownership heavily concentrated among corporations and geographically in China, the United States, and Saudi Arabia. - Ownership does not equal control. Chinese and other Asian investors exert significant control, while US investors exercise limited control due to reliance on passive investments. Saudi Arabia has full control over its investments. - Europe has weak control and limited presence in the petrochemical industry, with very few major companies, leaving it more dependent on external suppliers. Petrochemicals--used in everything from fertilizers, solar panels, clothing, and cosmetics to electric vehicles, electronics, and medicines--are integral to food security, manufacturing, and clean energy. They are also becoming the fastest-growing source of demand for oil. The 2026 conflict in the Middle East has exposed vulnerabilities in petrochemical supply chains, especially since Middle Eastern producers account for much of the global supply of key petrochemical products, including fertilizers, and one-third of global seaborne fertilizer trade transits the Strait of Hormuz. Understanding the petrochemical industry, including its size, geographical distribution, and ownership and control structure, is essential to reduce risks from geopolitical shocks, hostile takeovers, and fragile supply chains.

JEL-codes: G3 L1 L7 Q3 Q5 (search for similar items in EconPapers)
Date: 2026-03
New Economics Papers: this item is included in nep-ara and nep-min
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