The ethylene industry in developed countries has strategically leveraged their natural resource advantages to enhance the competitiveness of petrochemical products, especially in times of high oil prices. Since China's reform and opening-up, rapid economic growth has led to a surge in demand for petrochemicals, driving the domestic industry into a phase of accelerated development. As various regions and major companies plan and invest in ethylene projects, it becomes increasingly important to carefully consider the regional layout of the industry.
The ethylene industry is a capital-intensive, technology-driven sector that requires careful alignment with national development goals and regional economic conditions. Over the past few decades, Western oil and chemical industries have continuously evolved, adapting to strategic, large-scale, and modernization demands. They have focused on optimizing product structures, strengthening core operations, and accelerating technological innovation. This evolution has led to the formation of highly concentrated industrial zones, where upstream and downstream integration creates significant economies of scale and enhances overall efficiency.
For example, in the Gulf of Mexico in the U.S., Tokyo Bay in Japan, and coastal areas in South Korea, concentrated investments and integrated operations have allowed for shared raw material supply, reduced production costs, and improved competitiveness in the high oil price environment. These regions have become key centers for ethylene production, demonstrating how strategic location and resource optimization can drive long-term success.
In the U.S., 93% of ethylene production capacity is located in the Gulf of Mexico. Despite global economic changes over the years, this regional concentration has remained stable. In 1981, the Gulf of Mexico produced 85.03 million tons of crude oil annually, accounting for 20.2% of the U.S. total, and 16.06 million tons of ethylene, making up 88.9% of the national output. With 66 large petrochemical plants concentrated in Texas and Louisiana, the region became a hub for integrated oil and gas processing. Most ethylene plants used ethane from natural gas, and this layout has largely remained unchanged since then, maximizing resource efficiency.
Today, the U.S. ethylene industry is characterized by high concentration, diversified feedstocks like naphtha and natural gas, and close proximity to raw material sources. Texas and Louisiana remain central to production, hosting 29% of U.S. refineries and 42.6% of refining capacity. This setup allows for larger-scale operations and stronger international competitiveness.
Similarly, Japan’s ethylene production is concentrated in Tokyo Bay and Okayama, with 60% of its total capacity located in these two regions. Despite being a resource-poor country, Japan has built a strong, high-quality petrochemical industry, with many products exported globally. Its focus on quality and stability has helped maintain a competitive edge.
South Korea also concentrates its ethylene production in coastal port areas such as Ulsan, Incheon, and Daesan. While relying heavily on imported naphtha, the country emphasizes technological innovation and export-oriented production, with many petrochemical products entering the Chinese market.
In general, most ethylene plants are located in coastal cities due to better access to ports, transportation, and markets. These locations offer ideal conditions for investment and industrial growth, which is why developed countries have historically focused their ethylene infrastructure along coastlines. This trend continues to shape the global petrochemical landscape.
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