Petrochemical companies advised to reduce capex

The shale gas advantage of North American petrochemical majors provides a boost for investments in the region, primarily in the US. However, the oil price crash narrowed this advantage and is likely to affect profitability. GlobalData, a leading data and analytics company, anticipates that North American petrochemical majors that strive to pace investments efficiently, in line with market trends, will boost their competitiveness and seize further opportunities for growth over the long-term. 
John Paul Somavarapu, Oil and Gas Analyst at GlobalData, comments: “The sudden decline in crude oil prices have distinctly affected the planned investments by the North American producers and they now need to efficiently pace investments while preserving long-term gains. GlobalData expects companies to lower their operating expenses and capital expenditures and focus on less capital intense investments to position themselves well while the market recovers.”
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