Jobs may be the key to resolve GCC oil dependency issue

Oil rates have dropped to $80 per barrel from around $100, which now raises the question whether these economies will be able to withstand the tests of time. Will these economies be able to flourish in an environment of fixed terms of trade?

This will depend on the condition in each nation. However, all the countries are bound by the need to increase generation of productive jobs and to improve skills and productivity of the workforces. Despite progress in economic diversification in some nations, this accomplishment will not be enough to offset the operational challenges. Dependency on the oil and gas sector has hardly changed in these countries.

Economic diversification may seem to be moving quickly, between 2007 and 2013 GCC non-oil GDP developed by 7 per cent per year, which surpasses the growth of a mere 2 per cent in the oil and gas sector. Nevertheless, the share of oil and gas sector in the GCC economies’ GDP has increased during the past 10 years, primarily because of the climbing oil prices in the period, which increased the minimal value of oil output.

Analysts believe that the diversification that has taken place is to sectors that rely on inexpensive hydrocarbon feedstock. GCC governments have formulated a plan to expand their economy away from oil and gas, which has boosted investment. The investment ratio of these nations has grown from 21 per cent of GDP in 2011 to around 24 per cent in 2014.

A number of projects are in the pipeline and these projects will account for nearly 155 per cent of 2013 GDP, with just Saudi Arabia planning on projects worth $1.1 trillion. But the other investments in infrastructure may not point directly to diversification or sustainable development.

The major hindrance to diversification lies in the lack of education, skills and jobs. The poor quality of education results in poor development of skills and a lack of innovation in the economy, and this can be seen in the number of patents registered that originate in the GCC. The effects of an unskilled population are also reflected in the little money that has been spent on research and development.

GCC nations can be regarded as the world’s weakest performers in primary as well as secondary school levels, accompanied by nations like Yemen and Ghana.

Thus, education continues to weaken the region and GCC’s plans of boosting investments into human resources should gain utmost importance. It seems like GCC members spend much more on infrastructure than any middle/high income nation, while expenditure on education is far less when compared to several other countries, excluding Saudi Arabia and the UAE.

This attitude towards education has led to reduced labour participation levels, especially among women. But when GCC girls surpass boys in global mathematical exams, then lower female participation levels cannot be explained by poor academic feats.

Labour force in GCC is growing by 3-4 per cent every year but the skills of the workforce remain underdeveloped, which makes higher employment rates and greater economic growth much more difficult to achieve.

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Is Mineral Oil really safe for you?

Mineral oil, a by-product of petroleum and an odorless, colorless substance, has become a much used ingredient of engine oils, wood preservative, facial creams, pesticides, hair care products, cosmetics and baby oil. Mineral oil is believed to relieve constipation, however recent studies show that constant use or exposure can prove detrimental.

Pregnant women who use mineral oil (orally) often can induce hypoprothrombinemia and hemorrhagic disease, which can lead to excessive bleeding in their new born babies. While, inhaling mineral oil by pregnant women can cause testicular cancer in the foetus.

The U.S. Department of Agriculture reported about a patient who had mineral oil injected into his lungs, leading to loss of vision, headaches, convulsions and brief coma.

Studies have shown that low quality or poorly refined mineral oil can lead to the development of skin and scrotal cancers after heavy exposure. Mineral oil has been classified as a carcinogen and tumorigenic by the U.S. Registry of Toxic Effects of Chemical

Mineral oil is often used to treat constipation and its side-effects are associated with the gastrointestinal tract. Continual use of mineral oil can cause the oil to enter the anal sphincter and the pruritus ani or affect the skin outside the rectum. It can also slow down healing of postoperative wounds in the anorectal region and disrupt normal defecatory

Those working in the petroleum industry are exposed to mineral oil mist in the air, which can induce coughing, wheezing, respiratory tract irritations, shortness of breath or tachypnea. Mineral oil is considered to even cause lipid pneumonitis. The oil may even move to the lower lobes of the lungs leading to cyst formations and fibrosis.

Mineral oil users can develop vitamin deficiencies. The oil covers the mucosa of the small intestine and decreases absorption of vitamins A, D, E and K. Lack of vitamin K can inhibit the ability of blood thinners to function properly, which may result in PT/INR levels in the blood to go beyond safe ranges.

Avoid using baby products with mineral oil as it can cause your child’s skin to become dry and irritated. Maybe it is time to switch to healthier and natural alternatives to mineral oil.

Replacing mineral oil with natural oils that are derived from foods is a safe alternative. Natural oils that can acts as great substitutes for mineral oil in hair and skin products include olive oil, almond oil, apricot kernel oil, rose hip seed oil, wheat germ oil, sunflower oil, jojoba oil, grape seed oil and coconut oil.

The makers often forget their responsibility of manufacturing products that are not detrimental to their clients’ health. However customers should never forget to read the ingredients label before making a purchase.

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Renewable energy may be the way out of economic quagmire for Egypt

Lack of abundant financial resources combined with the failure to form strategic plans is responsible for Egypt’s energy crisis.  Mohamed Shoeb, former president of the Egyptian Natural Gas Holding Company, said, "The energy problem is well known. Its solutions are also well known, but there is no will to solve it."

Experts suggested that the government should come up with innovative solutions. Solar energy is considered to be a viable and beneficial option for Egypt. Nations like Germany have formulated a plan to produce electricity from renewable energy by 2050. Solar energy has become extremely inexpensive; the cost of it has decreased by 90 per cent in the past 10 years.

Experts opined that smart electricity meters can bring down consumption in peak hours and thereby reduce electricity cuts. Power cuts have become frequent since 2008, but the cuts were limited to summer months. However, in the winter of 2012-12 blackouts became common.

The government can lower consumption of households that make use of several air conditioners or other power-hungry electronic devices.

Households can also increase use of energy saving LED light bulbs, which will reduce consumption by almost 20 per cent. "There are several ideas that can be studied and implemented, but we have been very slow," says Mohamed Moussa Omran, undersecretary of the Ministry of Electricity.

Despite being the first region to start use of solar energy, they were left behind by countries like Bahrain, UAE and Saudi Arabia, which have started use of smart meters. "Transparency is missing, and that is a problem that needs to be solved. The government thinks the people are not capable of understanding the problem," says Shoeb.

Egypt expects to use nearly 2,500 megawatts yearly for the next five years in order to meet the rising demand, at a cost of $2.5 billion per annum. Egypt would also require funds to set up power stations, and fuel needs would cost at least $700 million per station per year. Foreign investors are crucial to the process of developing power stations as well as the power grid.

Nearly 80 per cent of Egypt’s electricity needs are met with the help of natural gas, the production of which has declined tremendously in recent years as a result of political instability and rising government debts have made foreign energy companies hesitant to invest in development of new gas fields. 

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Does chemical Triclosan in Colgate Total lead to cancer-cell growth?

Triclosan is said to cause cancer-cell growth and disrupted development in animals. Thus, is it safe to put chemical triclosan in soaps, toys, toothpastes etc. Let’s find out.

Consumer companies are gradually stopping the use of this harmful chemical. However, millions continue to be exposed to triclosan put in toothpastes like Colgate-Palmolive Co.’s Total. Colgate asserts that Total is safe and that the product underwent rigorous Food and Drug Administration process that led to the toothpaste’s approval in 1997 as an over-the-counter drug.

However, FDA recently published Colgate’s findings on triclosan which proved that FDA’s drug approval process is based on company-backed science to show products are safe and effective. This report made experts question the company’s research on triclosan.

The study showed fetal bone malformations in mice and rats, which was put aside as irrelevant by Colgate. However, such findings when viewed in terms of today’s science may prove that triclosan is capable of disrupting the endocrine system and affecting hormonal functioning.

Colgate continues to defend the effectiveness of its product. Colgate spokesman Thomas DiPiazza said, “In the nearly 18 years that Colgate Total has been on the market in the U.S., there has been no signal of a safety issue from adverse-event reports. Colgate also pointed to an independent 2013 review by the Cochrane Oral Health Group, a network of doctors, researchers and health advocates, which found no evidence of harmful effects associated with using Colgate Total.” The safety of this product is supported by 80 clinical studies involving 19,000 people.

The FDA is reviewing safety information available on triclosan in hand soaps and not in Colgate Total as triclosan hasn’t been proven superior to soap and water at washing hands, however its effectiveness as an ingredient in toothpastes has been made clear through its FDA approval process. FDA, however, is positive that triclosan doesn’t pose a cancer risk for humans.

Colgate stopped use of triclosan in its Softsoap liquid handsoaps and Palmolive antibacterial dish liquid in 2011. Triclosan is the most scrutinized chemical since it is now used in nearly 200 products including rugs and pet-food dispensers. Firms like Johnson & Johnson, Avon Products Inc. and Procter & Gamble Co. have decided to remove triclosan from their products.

Consumers have turned away from chemicals like Bisphenol A and phthalates and have become much more aware about toxicity ranking.

At the end of the day it is the manufacturer’s responsibility to assure that its product is safe and to provide consumers with relevant information.

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Chemicals & Fertilisers Minister emphasize action points for Ministry

With the coming of new government, on 28th May, 2014 Chemicals& Fertilisers Minister Mr. Ananth Kumar who took charge had said that petrochemical hubs has been schedule to set up in Tamil Nadu, Assam and Orissa and to gain momentum and in order to make the country self-dependent on the widely used soil nutrient, necessary measures will be taken by the government to revive the sick urea manufacturing plants. Furthermore he stresses that the government should also plans to stimulate all closed urea plants and make the country self-reliant in fertiliser supply.

The Chemicals & Fertilisers Minister Mr. Ananth Kumar for his ministry on taking charge have stressed on three actions which is to set up petrochemical hubs in a hastening efforts in Assam, Orissa and Tamilnadu, plummeting the costs of medicines by over 25% and ensuring ample & appropriate supply of fertilisers to farmers and reinforcement of all closed urea plants.

In the year 2013, the global economic growth of fertiliser industry had been quite inadequate, whereas in 2014 the growth of world economic activity was seen as recuperating. Since mid 1990s the fertiliser sector had not seen any momentous growth to capacity for making urea which is noted as the most important fertiliser and for improving the domestic availability of fertilisers can only meet up by encouraging new projects particularly by existing manufacturers, however in last two decades demand and import of fertiliser has soared high. With the slowdown of growth in China towards 7% will affect many other countries especially the commodity exports. In the year 2014-15, highest growth rates have been projected in the emerging economies particularly in Indonesia, China and India.

Furthermore with the formation of the new government, the new Chemicals & Fertilisers Minister assures the farmers that there will be no shortage of urea in the coming kharif season. As per the sources, India produces nearly 22 million tonnes of urea whereas the annual domestic demand is about 30 million tonnes. According the market outline, the Ministry of Chemicals and Fertilizers are struggling to pay out subsidies and the demand of India continues to remain under pressure, moreover the demand of fertiliser may possibly collision with a nascent weakening rupee and inadequate monsoons season. Hence an innovative and comprehensive policy for fertiliser sector is needed.

For more than a decade the creation of chemical manufacturing hubs in coastal India is an idea that has been languished and only one petrochemical hub ONGC has taken off in Dahej which has commissioned a world-scale cracker and is will considerably boost the availability of raw materials for downstream processing. However diminutive progresses have been made by four other clusters in Orissa, Andhra Pradesh, Karnataka and Tamil Nadu not a great deal exists aside plans on paper. Moreover, to improve the battered image of the Indian chemical industry, the scheduled growth will be served.

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China’s shale gas production to enter its booming years

Chinese shale gas industry is about to enter its booming years, made possible by China National Petroleum Corp and Sinopec Group. These two oil and gas companies enabled the nation’s shale output to hit 200 million cubic meters in 2013.

Shale gas production in China is expected to reach 1.5 billion cubic meters this year. China has made significant breakthroughs in the unconventional oil and gas exploration sector. 

In 2013, at the Chongqing Fuling shale gas block Sinopec averaged single well output of 150,000 cubic meters per day. The company is hoping to reach an annual production of 1 billion cubic meters by the end of this year. 

CNPC has commercialized shale gas output of 70 million cubic meters from Changning-Weiyuan block in Sichuan province, Zhaotong block in Yunnan and the Fushun-Yongchuan block in Sichuan. Based on the current development level these Chinese companies have managed to achieve will help increase domestic shale gas capacity.

However, there are analysts who are not so upbeat about the future. China is expected to consume nearly 170 billion cubic meters of natural gas in 2014. And even if the country manages to accomplish the goal, all the production cannot be used for society as it requires well-developed pipeline infrastructure and other supporting facilities. 

Low utilization rate and issues in upstream exploration will hinder the industry’s forward march.

The greatest hindrance is the lack of a method that can be used for most shale gas blocks in China. For instance, Sinopec’s technology for the Chongqing Fuling block cannot be used for other blocks.

Other major concerns include groundwater exploitation and contamination. Furthermore, China’s geological conditions are very different from those in the US- world’s biggest shale gas producer.
Majority of the shale gas blocks in China are in mountainous regions, which makes it extremely difficult to bring in huge fracturing equipments necessary to extract gas.
Shale gas exploration requires huge quantities of fresh water and technology available at present hasn’t been able to address this issue. Fresh water once used in shale gas extraction can’t be cleared for residential use and removing fluids from reservoirs can lead to surface subsidence.

These challenges have been limiting the growth of the shale gas industry. Companies are also reluctant to carry out operations in blocks they won from the bidding. 

Drilling a well can cost around 100 million yuan, which still cannot assure that shale gas will be found. Thus, the high cost and the inherent risks in shale gas exploration have deterred Chinese companies from making any big moves. The reluctance of the companies has also prevented any further bids.

China’s shale gas boom, however, has brought about opportunities for some machinery manufacturers. For instance, Yantai Jereh Oilfield Services Group Co Ltd has been trying to manufacture fracturing equipment suitable to China’s geological contours. This company is the only Chinese firm to supply shale gas equipment to North American companies. Jereh, recently, started developing machines meant specifically for Chinese projects. Their equipments can be used in areas with poor roads and uneven land.

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Chemical waste can been recycled and reused

Waste disposed at the industries clusters can be recycled in a great way as it can be reused to make new products, however, if these waste are not recycled than new products are made by hauling out fresh raw material from the earth through mining and forestry process. Chemical materials like plastic, glass and aluminum can be recycled and can be used in manufacturing other products. For chemical industry, treating waste discharge is a mandatory requirement for using it to make useful products which requires innovative thinking. Aluminum which is a cheaper chemical produced using recycled and scraps aluminum instead of using ores.

Nowadays, recycled products are on augment by many consumers and major industries have adopted this stance and most of the manufacturers are facing mounting pressure to provide products from recycled materials. Carpet manufacturers are also facing this pressure. Major chemical producers such as Honeywell/Allied Signal and DSM Chemicals have developed new technology which can help to recycle approximately 1.8 million tons of nylon carpet each year. This technology allows nylon manufacturers to recover and reuse caprolactam which is a raw material used to make nylon 6.

The recycled materials used in manufacturing process considerably take less energy than required for producing new products from raw material. On the contrary, more energy is saved as extra energy is required to extort, refine, transport and process ready raw material for industry in compare with providing industry ready material.

This process of recycling diminishes the need for mining, quarrying and logging, refining and processing raw materials as each one creates substantial air and water pollution. It also helps in saving energy and cuts down greenhouse gas production which in turn embarks upon the climate change. Currently, recycling in UK has projected to save more than 18 million tonnes of C02 a year which is equivalent of taking 5 million cars off the road.

According to the Tata Strategic Management Group (TSMG) report, approximately 20% of global effluents are liable for the chemical industry, even though it accounts for only 3% of global chemicals industries. Consequently several chemical companies have started to explore green chemistry based routes of synthesis to depose wastage and optimize the usage of raw material consumption.

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Asian buyers reduce imports of Iranian oil

The Western sanctions imposed upon Iran in mid-2012 led to declining oil revenues and a wobbly economy. If sanctions on the Islamic Republic are fully lifted, Tehran will have to persevere to regain the share of world oil markets it lost.

iran oil

Six countries namely China, Japan, Taiwan, India, Turkey and South Korea continue purchasing Iranian crude, but under exemption from US financial sanctions for which they have to reduce import of Iranian oil.

Since the sanctions came into force, Iran has lost market share in all these countries. Taiwan’s import volumes are rather small and inconsistent. Combined imports of crude oil from Iran by China, Japan and South Korea hit 1.09 million bpd in 2011, a year before the sanctions came into force. In 2013, the combined imports were at 740,000 bpd- a decline of 33.27 per cent from the 2011 level.

Over the same period, the combined total crude import volume by the 3 countries was at 14.81 million bpd in 2013 compared to 11.18 million bpd in 2011, a rise of 32.43 per cent from the 2011 level.

Iran is the only nation with declining volumes, whereas other suppliers increased volumes. For instance, Saudi Arabia increased supply by 4.66 per cent, whereas Russia raised supply by 39.6 per cent. Russia has been delivering larger volumes to Asia- the perfect market for its ESPO crude blend considering demand and logistics. After Russia, the biggest increase in supplies was from Kuwait, Iraq and Oman.

In 2011, combined imports of Saudi crude by the 3 countries stood at 2.895 million bpd. In 2012, Saudi raised supply by 7.36 per cent to 3.108 million bpd. In 2013, Saudi reduced volumes by 2.5 per cent to 3.03 million bpd. Imports from the UAE also increased by over 10 per cent to 1.325 million bpd in the previous year from 1.2 million bpd in 2011 and 2012.

In 2011-13, imports from Qatar to Japan and South Korea increased from 634,000 bpd to 700,000 bpd- a rise of 10.41 per cent.

Imports from Oman rose by 22.9 per cent to 601,000 bpd in the previous year from 489,000 bpd in 2011. In Iraq, imports increased from 620,000 bpd in 2011 to 784,000 bpd in 2013- a rise of 26.25 per cent. Iraq’s supply increase was concentrated on China.

Iraqi imports increased to 472,000 bpd in 2013 from 277,000 bpd in 2011. Japan’s import of crude oil from Iraq declined to 63,000 bpd fro, 99,000 bpd- a drop of 36 per cent between 2011 and 2013. While South Korea’s imports of Iraqi crude, at 249,000 bpd in 2013, showed little change.

Combined crude imports from Kuwait increased to 882,000 bpd in 2013 from 753,000 bpd in 2011- an increase of 17.13 per cent. For Saudi Arabia the greatest year-on-year percentage increase was in 2012, when imports from Kuwait increased by 21.78 per cent to 917,000 bpd. However, between 2012 and 2013 import volume declined by 3.82 per cent.

Saudi Arabia, Qatar, Iraq, Kuwait and the UAE increased supply to China, Japan and South Korea by 516,000 bpd between 2011 and 2013.

Volume increase from Gulf exporters, including Oman, over the 2011-2013 period stood at 728,000 bpd, almost double the 369,000 bpd volume by which imports from Iran declined.

China witnessed increased supply from two other OPEC producers. Supply from Angola increased from 626,000 bpd in 2011 to 804,000 bpd in 2013, an increase of 28.43 per cent. Venezuela also raised supply from 231,000 bpd in 2011 to 316,000 bpd in 2013, an increase of 36.8 per cent.

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Outlook on Indian petrochemical industry

In the year 2013, Indian petrochemical industry was significantly affected by an economic slowdown and the depreciation of the Indian currency. The Indian petrochemical producers are optimistic about the outlook of Indian petrochemical industry in near future. A number of investments are begin made by various state-owned energy companies to boost their petrochemical activities and are also expecting to become a major players in the petrochemical industry.

Indian petrochemical industry

Several petrochemical producers have scheduled to expand their production capacity at their plants, which will slow and steadily fill the gap between domestic and supply. However, as per the industry sources, comparatively, limited new domestic capacity is projected to come on-stream and as a result, import threats from Mideast and East Asian producers remain noteworthy for Indian producers.

According to the market experts, in the recent year the overall outlook petrochemical industry in India is somewhat more positive as the augmentation in GDP and industrial output is anticipated to be higher in year 2014 in compare to the previous year. Since November 2013 the market condition had been buoyant and double digit growth is expected to grow in the ending of the FY15.

The Indian petrochemical and downstream industries were drastically affected by the fall of the Indian currency. This fall in Indian currency were directly impacted on the converter industry in India, as the values of majority of petrochemical products in India were based on an import parity price. In the fiscal year 2012, one of major petrochemical producers Indian Oil had reported revenue of almost USD 2.5 billion in compare to the previous fiscal year. Currently the total revenue of petrochemical business of Indian Oil accounts for about 3.5% and in the next few year the company is planning to increase the share of petrochemicals in the overall revenue.

During past three year, the economic growth in India is once again increasing after a slowdown and as per the estimates done by the research analyst, in the fiscal year ending 31st March 2014, the GDP growth rate of India will increase from 4.6% to 5.4% and 6.3% in the fiscal 2015. According to the market experts, the long term growth outlook of Indian petrochemical industry is likely to remain optimistic and during 2013, the demand growth in India was low in compare to the prior year. As the manufacturing sector is struggling the market experts do not expect the single digit growth rate to considerably improve in the near future.

Nearly few major petrochemical manufactures have scheduled to build up new petrochemical plants at their units. Indian Oil and BP which is one of the major petrochemical manufactures are planning to start a new Acetic Acid plant in Gujarat. The plant will be having production capacity of 1 million mt/year and will be one of the largest Acetic acid plants in Gujarat, India. This plant is a joint venture between Indian Oil and BP and the firm would be investing nearly USD 1 billion for setting up the facility near Koyali refinery of IOC. The acetic acid facility which is located in Vadodara city is expected to begin its operational in 2017. Indian Oil is also studying a number of projects based on refinery propylene at Koyali.

Another petrochemical major ONGC Mangalore Petrochemicals Ltd. is building an aromatics complex in the 

Mangalore special economic zone (SEZ). The OMPL is promoted by ONGC and Mangalore Refinery and Petrochemicals Ltd. is a subsidiary of ONGC. The Aromatics complex will be producing Paraxylene with production capacity of 900,000 mt/year, Benzene with about 300,000 mt/year and the plant is expected to starts its operational in the fiscal year ending March 2015.

Two major petrochemical industry Ineos and Sinopec have signed a joint venture agreement and the Articles of Association to form a 50-50 joint venture company at Nanjing on Tuesday. The joint venture will be called Ineos YPC Phenol Nanjing Co. which will set to build the largest Phenol-Acetone plant in China and will have a total investment of approximately USD 0.5 billion (RMB 3.15 billion) and is expected to start its operation by the end of 2016. The plant will be located Nanjing Chemical Industrial Park and the annual capacity of the new plant will be at least 400,000 tonnes of Phenol and 250,000 tonnes of Acetone. The complex will also include 550,000 mt/year of cumene capacity. This joint venture is the largest investment of Ineos in China and the eighth joint venture of Sinopec Yangzi Petrochemical Company.

Global Petrochemical manufacturer – Reliance to expand its production capacity at two major petrochemical plants based in Dahej and Jamnagar. The company will commission PTA plant located at Dahej around 1.1 million mt/year in the third quarter of 2014 which is followed by another plant of the same capacity within six months. However, the total production capacity of PTA will be 4.3 million mt/year, which will make the company the fifth largest producer of PTA in the world. In the year 2015, the company is likely to build Ethylene plant at Jamnagar. The commercial start up of the plant is expected to start in the second half of 2015. The plant situated at Jamnagar will have a production capacity of 1.5 million mt/year.

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Syria’s oil and gas production may take years to recover

The ongoing hostilities between the Syrian government and the rebels have made it impossible for the nation’s oil and gas production to recover in the near term. Oil production in Syria has dropped drastically since March 2011 primarily due to the conflict and also due to the imposition of Western sanctions, which has led to loss of oil export revenues.

Even Syria’s natural gas production has been adversely affected, although not as significantly as oil, but dry gas production has declined by nearly 30 per cent compared with pre-conflict production levels.

Analysts estimate that Syria’s oil and gas production may take months even years to recover. Even when the fighting subsides, it would probably take a while for the Syrian domestic energy system to reach pre-conflict levels. Production and export of crude oil has fallen dramatically. Syria is also facing supply shortages for some refined products.

Syria’s proven oil reserves are estimated to stand at 2.5 billion bbl, larger than all of Syria’s neighbours except for Iraq.

During 2008-10 Syria’s oil production was more than 400,000 bpd. However, in January the country’s oil production was estimated at less than 25,000 bpd. In 2014, production also included production outside control of the Syrian government. In late 2013, the Syrian government lost control of nearly all of the nation’s key oil fields. Rebels had managed to seize control of Syria’s oil and gas resources.

Majority of the international oil firms involved in Syria’s energy sector have terminated operations. The oil companies currently operating in Syria are Hayan Petroleum and the Elba Petroleum Co. However, these firms are operating without their IOC partners. In December 2013, the Syrian government and the Russian company SoyuzNefeGaz signed a 25-year exploration agreement in Block 2 offshore.

Although the oil fields have escaped damage from the violence and clashes, oil production has been stopped because of insufficient export opportunities and limited refining capacity.

Syria is facing serious issues in importing petroleum products and is also experiencing shortage of heating oil and diesel fuel. The shortfalls are expected to continue.

Currently, Syrian refineries are being operated at reduced rates. Syria has refineries in Hams and Banias and the combined capacity of both the refineries has fallen to half of their pre-conflict production levels.

Plans to set up new refineries are either on hold or have been cancelled. For instance, the proposed 100,000 bpd facility at Abu Khashab was cancelled due to widespread anarchy in the country.

In 2012, Syria’s consumption of products was below 260,000bpd. Experts believe that consumption in 2013 will be even lower.

The Syrian government continues to subsidize domestic use of petroleum products. The government spent over $1 billion on petroleum subsidies in the first half of 2013.

Thus, the future of Syrian energy sector appears rather bleak at the moment.

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Perfumes laced with chemicals?

A recent study has worried numerous perfume lovers, including me. The report revealed that fragrances often consist of hormone-disrupting chemicals and chemicals that could cause allergic reactions. Major perfume brands have not even bothered to mention the ingredients they use in their products. Consumers take into consideration only the brand, reading the product label is deemed unnecessary.

Perfume brands are allowed to use any chemical to manufacture fragrances, with no required safety assessments, and are not even obligated to reveal the ingredients. Cosmetics can reach consumers without pre-approval. Public awareness on how hazardous low-level toxins are is extremely low. Experts have found nearly 14 hidden chemicals in several popular fragrances, including American Eagle’s Seventy-Seven, Dolce & Gabbana Light Blue, Coco Mademoiselle Chanel and Calvin Klein Eternity. Majority of these chemicals are unstudied and unregulated.

The products that were tested comprised of 10 sensitizers, which are chemicals that can cause allergic reactions such as wheezing, asthma, headaches etc. These products also consisted of 12 hormone-disrupting chemicals. Low-dose exposure to toxic chemicals can lead to long-term health issues.
The commonly found chemicals in perfumes are:-

ACETONE – found in cologne, dishwashing liquid and detergent, nail enamel remover etc. Long-term exposure to this chemical can cause coma, dryness of the mouth and throat, dizziness, nausea, slurred speech etc. It acts as a central nervous system depressant.

BENZALDEHYDE – found in perfume, cologne, hairspray, laundry bleach, deodorants, detergent, Vaseline lotion, shaving cream, shampoo, bar soap, dishwasher detergent etc. This chemical can cause kidney damage, irritation to the throat, mouth, eyes, skin, lungs etc.

BENZYL ACETATE- found in perfume, cologne, shampoo, fabric softener, stickup air freshener, dishwashing liquid and detergent, soap, hairspray, bleach, after shave, deodorants. It is carcinogenic and can cause irritation to respiratory passages, eyes, skin etc.

BENZYL ALCOHOL - found in perfume, cologne, soap, shampoo, nail enamel remover, air freshener, laundry bleach and detergent, Vaseline lotion, deodorants, fabric softener.  Exposure to this chemical may lead to headache, nausea, dizziness, drop in blood pressure and respiratory failure.

CAMPHOR – found in perfume, shaving cream, nail enamel, fabric softener, dishwasher detergent, nail colour, stickup air freshener.  It is a central nervous system depressant and is readily absorbed through body tissues. It may cause irritation of eyes, throat, dizziness, nausea, convulsions etc.

ETHANOL –found in perfume, hairspray, shampoo, fabric softener, dishwashing liquid and detergent, laundry detergent, shaving cream, soap, Vaseline lotion, air fresheners, nail colour and remover, paint and varnish remover. Inhalation of ethanol vapours may lead to drowsiness, impaired vision, ataxia, CNS disorder, fatigue etc.

ETHYL ACETATE – found in after shave, cologne, perfume, shampoo, nail colour, nail enamel remover, fabric softener, dishwashing liquid. It can cause irritation to the eyes and the respiratory tract. It may also cause headache, anaemia, damage to liver and kidneys.

LIMONENE –found in perfume, cologne, disinfectant spray, bar soap, shaving cream, deodorants, nail colour and remover, fabric softener, dishwashing liquid, air fresheners, after shave, bleach, paint and varnish remover. It is carcinogenic and can cause irritation to eyes and skin.

LINALOOL –found in perfume, cologne, bar soap, shampoo, hand lotion, nail enamel remover, hairspray, laundry detergent, dishwashing liquid, Vaseline lotion, air fresheners, bleach powder, fabric softener, shaving cream, after shave, solid deodorant. Exposure to this chemical can lead to CNS disorder.

METHYLENE CHLORIDE – found in shampoo, cologne, paint and varnish remover. This chemical has been banned by the FDA. It is carcinogenic and can lead to headache, giddiness, irritability, CNS disorder etc.   

a-PINENE – found in bar and liquid soap, cologne, perfume, shaving cream, deodorants, dishwashing liquid, air freshener. This chemical is damaging to the immune system.

g-TERPINENE – found in cologne, perfume, soap, shaving cream, deodorant, air freshener. It may cause asthma and CNS disorder.

a-TERPINEOL – found in perfume, cologne, laundry detergent, bleach powder, laundry bleach, fabric softener, stickup air freshener, Vaseline lotion, cologne, soap, hairspray, after shave, roll-on deodorant. It can cause irritation to mucous membranes, hypothermia, ataxia, CNS and respiratory depression and headache.
Manufacturers need to divulge what’s in their products, eliminate use of hazardous chemicals and ensure safety of chemicals before putting them into their products.

The need for legislations that would overhaul outdated cosmetics oversight and regulation has become absolutely essential. Consumers have a right to know that the products they use are as safe as possible. 

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Global Chemical Price – Pricing assessment methodology

A very own price assessment methodology has been developed by GCP, which has taken into account as per the existing market standards. A well defined procedure is followed to ensure accuracy, reliability & consistency of the prices. After collecting recent information from active participants of the market like brokers, traders, distributors & consumers the daily price assessments are made. Our team collects the market data through emails, telephone calls, electronic transfer & instant messaging. 

methodology

Opening market prices based upon the transaction size are taken from the key brokers & producers in the market by our team of analysts who regularly communicate with them. A detailed price assessment followed by scrutiny is made at every level. Current market scenario, strong reason for fluctuations in prices, demand supply ratio, variation in upstream & downstream products, disparity in feedstock prices are various factors on the basis of which examination is done The prices are published only after thorough analysis, and these chemical prices are or bulk quantity.

We currently follow the above said methodology for nearly 30 organic chemicals & petrochemicals.

 Acetic Acid Methodology

 Acetone Methodology

 Acrylonitrile Methodology

 Butyl Acetate Methodology

 Butyl Acrylate Monomer Methodology

 Base Oil Methodology

 C9 Methodology

 Cyclohexanone Methodology

 Ethylene Dichloride Methodology

 Formaldehyde Methodology

 ISO Propanol Methodology

 Maleic Anhydride Methodology

 Melamine Methodology

 Methanol Methodology

 Methyl Ethyl Ketone Methodology

 Methyl Isobutyl Ketone Methodology

 Methylene Di Chloride Methodology

 Mixed Xylene Methodology

 Mono Ethylene Glycol Methodology

 N - Butanol Methodology

 N - Hexane Methodology

 N - Propanol Methodology

 Ortho Xylene Methodology

 Phenol Methodology

 Phthalic Anhydride Methodology

 Styrene Monomers Methodology

 Toluene Methodology

 Vinyl Acetate Monomers Methodology

 For more info about :Methodology

How chemically driven drugs affect the human body!

Drugs are chemicals that make changes to the structure of the human body and can only react chemically as it is the only action which drugs are competent. Due to the chemical structures of different drugs can affect the human body in various ways, however, few drugs make necessary changes that is, if a person needs an insulin for diabetes or chemotherapy for cancer. Most of the harmful drugs directly or indirectly target the reward system of the brain by tormenting the circuit with dopa mine which is a neurotransmitter present in regions of the brain that regulate movement, emotion, cognition, motivation, and feelings of pleasure.

How chemically driven drugs affect the human body!

Drugs can affect the brain

When drugs get into the bloodstream, it concedes to all parts of the body and few particles reach the brain which can affect the brain functionality. As brain is known as the master control center of the body, it sends messages to the rest of the body based on the signals that it gets from the drugs. The most easiest and dangerous way of getting drugs into the brain is to inject it intravenously or injecting it into the vein.

Few of the experiments done on animals have shown that certain drugs like ecstasy can damage brain cells, but experts do not agree on whether such thing happens with humans. By in taking a wide range of drugs such as ecstasy, LSD and solvents, there have been chances about damage to the brain. However, undue and long term use of alcohol can also lead to possible brain damage.

Drugs can affect the heart

Drugs can also have a consequence on the heart directly and aggravate heart disease. The drugs that are taken enter the bloodstream and the heart pumps blood containing the drug to the brain where it affects the human body. Taking customary and high doses of tonic drugs like amphetamine, cocaine/crack, ecstasy, anabolic steroids and even possibly caffeine may increase the risk of heart attacks, especially for people who are already suffering from heart problems or high blood pressure.

Heavy drinking of alcohol and regularly consuming of tobacco may lead to a greater risk of heart problems. Consuming alcohol on a regular basis may result in weakening the ability of the heart to pump blood, which might cause heart failure. Similarly, nicotine which is found in tobacco is a kind of stimulant which increases the workload of the heart and at the same time carbon monoxide takes away the oxygen of the heart which is needed.

Drugs can affect liver and lungs

Most of the drugs can cause damage to the liver and lungs of a human body, which will make the body powerless to fight off infection. Lungs which are one of the most important organs of a human body, helps inhaling oxygen directly and very effectively to the body, however anything that is inhaled will enter the blood and very quickly to the brain. Drugs such as solvents and poppers/nitrites can also be inhaled, whereas, drugs like solvents are directly absorbed into the lungs.

Gradually neutralizing the affects of the drug, the liver alters the chemical structure of the drugs and slowly but surely stops working. Drugs such as ecstasy and drinking of alcohol constantly can impairment the liver of a human body.

Thus while using drugs, many possible risks and dangers might rise and can even cause side effects. For an instant, a person whose stimulants are high may experience an augment in energy which is caused by intake of drugs may speed up the metabolism of the body and the heart rate. Hence intake of excessive drugs can risk ones health and over a long period, taking drugs on regular basis might slowly lose its result.

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How would Iranian economy look without sanctions?

Leaders from Iran had welcomed a short-term deal over its nuclear programme to facilitate world powers allowance from sanctions targeting its key energy and financial sectors, which have crippled its economy. International Atomic Energy Agency (IAEA) was unable to confirm assertions of Tehran whether these nuclear activities are solely for peaceful purpose, since nuclear programme of Iran became public in the year 2002. According to the market experts, the landmark agreement Iran clinched with world powers on its unclear nuclear programme took effect from 20th January 2014. According to the U.S. President Barack Obama, he has no delusion on the difficulty of reaching a final agreement with Iran.

Since November 2013, the news about Iran had almost been focused on the deal to limit that nuclear program of the country, Tehran agreed to curtail its nuclear drive for six months in exchange meant for receiving modest liberation from international sanctions and a promise by Western powers not to impose new measures against its hard-hit economy. According to the senior U.S. administration official, the first $550 million installment of $4.2 billion in frozen chattels was released early in the month of December 2013. As per the research analysts, unblocking the funds will breathe new life into the economy and provide much-needed relief across Iran.

The deal which is between Iran and the six world powers known as P5+1, anticipate the six-month suspension of certain sanctions on gold and precious metals, auto sector and petrochemical exports of Iran. Less than a month after Iran and the P5+1 countries reached a deal over the final nuclear program, the Iranian people and many international stakeholders are still waiting for economic sanctions on Iran to be lifted.  

Oil, Inflation and the Auto Sector 

After the lift of economic sanctions, global businesses are piling back into Tehran and for foreign firms the biggest prize in Iran is indisputably its sanctions crippled on oil and gas sector. During past nine months, Iran had sold $34 billion worth of oil and byproducts earning $32billion.

According to Leylaz, sanctions relief could strengthen the state assets in the long term and the annual revenue was estimated that it will rise by $20-25 billion dollars, which will help the government control inflation and will meet the demands of a population ravenous for more consumer goods.

Another big opportunity in Iran is the auto sector of Iran which had been essential for European producers before the sanctions hit. It accounts for 10% of its gross domestic product and is the second biggest industry after oil and is also likely to profit from sanctions relief. 

According to the White House, during the six months of the interim nuclear agreement oil exports from Iran are to remain at the current level of about 1 million bpd. During the period from sales of petrochemicals, trading in gold and other precious metals and the improved transactions with foreign firms involved in the automotive sector will estimate that Iran will mount up to $1.5 billion.

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