Betting Billions On Petrochemicals, The Feedstocks That Become Plastics

Read more at The Guardian

  • The Industry Pivot: Facing declining gasoline demand, major fossil fuel companies like Exxon, Shell, and Dow are betting billions on petrochemicals (plastics) as a primary source of future growth.
  • The Proposed Plant: Exxon’s delayed $10 billion plastics plant in Calhoun County, Texas, was designed to produce 3 million tons of polyethylene pellets annually, the raw material for countless plastic products.
  • Pollution Concerns: This pivot is characterized as “doubling down on pollution,” extending a fossil-fuel chain from West Texas wells to manufacturing zones in Asia, raising major health and environmental risks for the Gulf coast.
  • Community Activist: Diane Wilson, a 77-year-old shrimper, led the resistance to Exxon’s project in her lifelong home of Seadrift, Texas, a village deeply connected to the bay and fishing.
  • The Lawsuit: Wilson sued the Calhoun County school board, arguing it violated Texas open-meeting laws by rushing the approval of a tax abatement for Exxon “to avoid public opposition.”
  • Legal Victory and Delay: A district judge struck down the tax abatement approval. Less than two weeks later, Exxon announced it would pause plans for the new facility, citing “market conditions”—a timing the author finds hard to ignore.
  • Historic Precedent: Wilson previously led a historic $50 million Clean Water Act settlement against Formosa Plastics for illegal plastic pellet dumping, establishing her as a formidable grassroots leader.
  • Power of the Local Fight: The delay shows that even in regions dominated by fossil fuel interests, local, community-led resistance can force major corporations to pause and demand transparency.
  • Regional Reckoning: This local action is part of a larger regional reckoning against extractive industries across the Gulf South, including similar fights in Louisiana’s Cancer Alley.

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