Plastics generally begin life either as naphtha (a crude oil derivative) or natural gas liquids. Historically, crude and natural gas prices have moved in tandem, however this relationship has broken as hydraulic fracturing technologies have lead to a huge increase in gas supply – primarily in the US but with effects for global markets. This situation presents interesting questions for manufacturers of plastic goods.

Montachem Inc.

At current prices the production of palstics from natural gas has a huge cost advantage over naphta.