Electrical energy and the petro-chemical industry: Where are we going?

The petroleum and chemical industries use nearly 26% (≈ 1/4^th) of all electricity consumed by industry and nearly 7% of all electrical energy consumed in the US. A segment of the overall energy industry using such a large percentage of the electricity can hardly help but be affected by the future trends in the usage and generation of electricity. Developments in renewable energy systems augmented by the renewable portfolio standards mandated in many states, various energy conservation measures, and the legislative climate all provide cause to reassess the way industry uses and generates electricity. Future taxation, limits on carbon emissions, other environmental and political concerns, high unemployment and overall economic conditions and future growth will also make necessary a paradigm shift on how electricity will be delivered and utilized. This paper examines the present state of energy usage in the petroleum and chemical industry, trends in energy usage and generation, and where these trends may be leading.