Petrochemicals
The six base petrochemicals — ethylene, propylene, butylenes, benzene, toluene and xylenes — are the building blocks to millions of products that make life better, safer and healthier. These base petrochemicals are used to make products that keep our homes warm in the winter and cool in the summer; keep our healthcare workers safe and our medical facilities clean; reduce emissions by lightweighting cars and emergency services, and help keep us healthy.
In-demand Petrochemicals
Our petrochemical manufacturers continue to be global leaders in the production of ethylene and propylene, the two most in-demand petrochemicals in the world that are essential to countless products we rely on every day.
Ethane, which is produced with natural gas and crude oil, is the primary feedstock for U.S. ethylene production. It provides our petrochemical companies with a significant cost advantage over our competitors that use naphtha as a feedstock, which is derived from crude oil. These companies also benefit from the well-developed and interconnected infrastructure system along the U.S. Gulf Coast petrochemical manufacturing corridor. This system allows them to more efficiently and affordably move feedstocks and products, usually by pipeline, minimizing disruptions.
In 2023, U.S. exports of ethane and ethane-based petrochemicals (i.e., ethylene and its derivatives) reached an all-time high of 21.6 million metric tons. This represents an increase of 135% in the last decade and a 17% increase since 2022. Our cost advantage is expected to continue and improve by the end of the decade and qualifies ethane and ethane-based petrochemicals as important contributors to our nation’s positive trade balance.
China is the largest importer of ethylene from the United States, accounting for 38% of all exports. Belgium (19%), Indonesia (16%), Taiwan (6%) and France (5%) rounded out the top five.8
Propane, which is produced with natural gas and crude oil, has become a primary feedstock for U.S. propylene production. In the U.S. propane production more than doubled in the last 10 years, providing a cost advantage to propylene producers. The United States is the second largest exporter of propylene in the world, after the Netherlands, shipping most to Mexico and Colombia. Propylene is the second-most consumed petrochemical in the world, after ethylene.
