WEBVTT - S6 Part 1 | Plastic Pipelines | Ep 3: And Then There Was Covid...

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<v Speaker 1>The International Solid Waste Association estimates consumption of single use

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<v Speaker 1>plastic may have grown two hundred and fifty to three

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<v Speaker 1>hundred percent in America since the pandemic begins.

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<v Speaker 2>The resurgence of the thin, single use truly single use

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<v Speaker 2>plastic bags is astonished.

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<v Speaker 3>And is concerned New York's plastic bag ban is not

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<v Speaker 3>being enforced.

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<v Speaker 1>The lost full implementation was first delayed in February by

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<v Speaker 1>a court challenge.

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<v Speaker 4>And then COVID hit, so the thirty day delay became

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<v Speaker 4>a sixty day delayed to the ninety day delays. The

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<v Speaker 4>pandemic has led to a lot of confusion about whether

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<v Speaker 4>it's safe to bring reusable bags into grocery stores. While

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<v Speaker 4>some stores allow them, others.

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<v Speaker 5>Don't, But single use plastic is also surging in other ways.

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<v Speaker 5>Deliveries wrapped in plastic have soared. Coffee shops like Starbucks

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<v Speaker 5>have temporarily stopped filling we Use A cups, and some

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<v Speaker 5>US cities and states suspended or postponed fans on plastic

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<v Speaker 5>shopping bags. The plastics industry has lobbied for these rollbacks,

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<v Speaker 5>arguing that single use plastic is the safest material to

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<v Speaker 5>protect people from COVID nineteen.

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<v Speaker 4>It probably comes as no surprise to you that the

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<v Speaker 4>pandemic spurred a massive uptick in plastic. If you were

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<v Speaker 4>here in the US, you almost immediately saw it everywhere.

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<v Speaker 4>Plastic bags back at the grocery store, plastic wrapping on everything,

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<v Speaker 4>the masks, the gloves. But what you might not have

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<v Speaker 4>known was just how intentional that was on the part

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<v Speaker 4>of the industry, just how ready they were to deploy

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<v Speaker 4>a strategy that would increase the use of plastic. If

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<v Speaker 4>there's one thing I've learned from covering the fossil fuel

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<v Speaker 4>industry and its various forms over the last twenty years,

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<v Speaker 4>it's that they are prepared for absolutely everything. Shell actually

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<v Speaker 4>invented something called scenario planning back in the late eighties

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<v Speaker 4>and early nineties. Now all the oil companies do it,

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<v Speaker 4>and lots of other industries too. It's basically what it

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<v Speaker 4>sounds like, brainstorming all the possible future scenarios and making

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<v Speaker 4>a plan for each of them. No industry is better

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<v Speaker 4>at it than the fossil fuel industry, which is why

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<v Speaker 4>they always seem to have a response ready for everything.

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<v Speaker 4>When COVID nineteen first started to really take hold in

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<v Speaker 4>the US back in March twenty twenty, I started scouring

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<v Speaker 4>all my usual sources for evidence of the industry's response,

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<v Speaker 4>and sure enough, the American Petroleum Institute and the American

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<v Speaker 4>Fuel and Petrochemical Manufacturers, the two main trade groups for

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<v Speaker 4>the industry, were immediately with politicians asking for regulatory rollbacks

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<v Speaker 4>and other types of support. The API tackled everything from

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<v Speaker 4>pipeline permitting to emissions regulations, while the AFPM focused on

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<v Speaker 4>all the rules that would affect the buildout of plastic

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<v Speaker 4>manufacturing facilities. But they also set their sights on getting

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<v Speaker 4>rid of something that's been bugging the industry for years,

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<v Speaker 4>plastic bag bands. As you heard at the top of

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<v Speaker 4>the episode, there was some concern early on that people

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<v Speaker 4>might spread COVID by bringing their bags to the grocery store.

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<v Speaker 4>We just didn't know how the virus was spread at

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<v Speaker 4>the time, and the industry pounced on that confusion and

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<v Speaker 4>the fear that accompanied it, and they pushed this idea

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<v Speaker 4>that plastic bags were somehow safer than reusable bags, that

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<v Speaker 4>somehow the virus wouldn't live on them. It was sort

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<v Speaker 4>of a miracle for the industry when they were starting

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<v Speaker 4>to worry that plastic demand would actually not ever be

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<v Speaker 4>quite what they wanted it to be. Here comes a

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<v Speaker 4>way to increase that demand exponentially.

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<v Speaker 3>Well, I think what we're seeing is just how much

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<v Speaker 3>the industry is relying on plastics to save it going forward.

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<v Speaker 4>This is Carol Muffett, President and CEO of the Center

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<v Speaker 4>for International Environmental Law. You heard from him earlier this

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<v Speaker 4>season too.

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<v Speaker 3>The industry has, on the one hand, been working on

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<v Speaker 3>an array of regulatory rollbacks, on working to close down

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<v Speaker 3>public opposition in public participation in decisions affecting a lot

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<v Speaker 3>of its operations. But on the plastic side, it's gone

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<v Speaker 3>still further and is actually seeking to exploit the current

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<v Speaker 3>crisis to say that the world needs.

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<v Speaker 6>To be using more, not less, plastic.

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<v Speaker 3>And it's doing this at a time where, again, even

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<v Speaker 3>before the crisis began, you had major producers of plastics

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<v Speaker 3>residents acknowledging that the industry's two hundred billion dollar investment

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<v Speaker 3>in infrastructure had been overly optimistic, that capacity was being overbuilt,

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<v Speaker 3>that prices for plastic resins and demand for plastic goods

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<v Speaker 3>were not growing at anywhere near what the industry had

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<v Speaker 3>been assuming it would.

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<v Speaker 4>Imman Westervelt, and this is drilled. We're continuing part one

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<v Speaker 4>of season six to day plastic pipelines. If you missed

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<v Speaker 4>the first two episodes, go back and start there. Our

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<v Speaker 4>story today the industry's COVID strategy. Did it work? Did

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<v Speaker 4>COVID save plastic? That's coming up after this quick break.

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<v Speaker 4>We heard in episode one of this series that plastic

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<v Speaker 4>was a way to make up for money that fracking

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<v Speaker 4>was not making. But there's another side to the explosion

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<v Speaker 4>of plastics over the past decade. It's the oil industry's

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<v Speaker 4>escape hatch.

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<v Speaker 1>You know.

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<v Speaker 7>Expiration spend is down seventy five percent from the peak,

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<v Speaker 7>seventy five percent over seventy five percent, and I don't

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<v Speaker 7>see it going up from that point. I see it

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<v Speaker 7>going down.

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<v Speaker 4>This is Bernard Looney, CEO of BP, talking about peak

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<v Speaker 4>oil in twenty twenty.

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<v Speaker 7>So I think life has changed over the last couple

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<v Speaker 7>of years, but it is important to acknowledge reality, and

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<v Speaker 7>that's what we've done.

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<v Speaker 4>Peak oil is the term that's used to talk about

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<v Speaker 4>this point where global oil demand will take a downward

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<v Speaker 4>turn and never really bounce back. And oil companies have

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<v Speaker 4>been seeing that point coming for a while in their

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<v Speaker 4>projections and annual reports. They've been talking about a decrease

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<v Speaker 4>in fossil fuel use in transportation and residential areas, but

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<v Speaker 4>they've also been talking about this other area where revenues

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<v Speaker 4>are going to increase, petrochemicals, especially plastic. And keep in mind,

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<v Speaker 4>while we have solar and wind as replacements for fossil

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<v Speaker 4>fuel energy in homes and cars, there aren't a ton

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<v Speaker 4>of great replacements for petrochemicals. That's one part of the

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<v Speaker 4>reason that the industry is banking on them. Here's Kingsmill Bond,

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<v Speaker 4>an analyst with the nonprofit Carbon Tracker who's been researching

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<v Speaker 4>the petrochemical industry over the last few years.

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<v Speaker 8>Plastics was always like something that you did on the

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<v Speaker 8>with your on on the side once once you use

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<v Speaker 8>the primary use of oil in transportation other areas, so

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<v Speaker 8>it's quite surprising that it's shot up the agenda. And

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<v Speaker 8>pretty much, as you say, what's happened over the last

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<v Speaker 8>few years is that all of the other growth drivers

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<v Speaker 8>of oil have kind of fallen by the wayside. So

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<v Speaker 8>cars used to be one of the four big growth vectors,

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<v Speaker 8>and and and as cars gone more efficient and electric

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<v Speaker 8>vehicles coming to the mix, people and now said, well,

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<v Speaker 8>you know, even the IA is now saying, actually, we've

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<v Speaker 8>probably reached peak demand for oil from cars, and then

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<v Speaker 8>the same thing's starting to happen with trucks. And obviously

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<v Speaker 8>in recent months, the COVID crisis has taken the steam

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<v Speaker 8>out of the the third big pillar, which was airlines,

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<v Speaker 8>and like petrochemicals, has become a kind of mantra for

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<v Speaker 8>the oil industry that thank goodness for petro chemicals because

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<v Speaker 8>you know, that's where all the growth lies. And it's

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<v Speaker 8>quite interesting if you if you take the data now

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<v Speaker 8>from VP and the i A, probably the two leading

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<v Speaker 8>forecasters of the entire system, then from our calculations, about

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<v Speaker 8>half the growth of oil demand in the next twenty

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<v Speaker 8>years in the i A numbers is actually from plastics.

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<v Speaker 4>So plastic is the savior for the fracking guys and

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<v Speaker 4>the oil guys. That's a lot writing on plastic demand

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<v Speaker 4>staying high and growing, which is why when COVID hit

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<v Speaker 4>it looked like a golden opportunity. Here's Carol Muffett again.

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<v Speaker 3>So what we're seeing in the face of COVID is

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<v Speaker 3>the industry trying to exploit this crisis in two very

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<v Speaker 3>distinct ways. First is to secure additional government investments and

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<v Speaker 3>additional regulatory rollbacks to make these projects move forward. And

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<v Speaker 3>the second is the push to exploit the idea of

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<v Speaker 3>COVID to argue not only against bands on the single

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<v Speaker 3>used to disposable plastics that many countries were moving forward with,

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<v Speaker 3>but also to argue that the world should be wrapping

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<v Speaker 3>ever more items in plastic packaging in the name of

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<v Speaker 3>hygiene and and public safety. And there's a remarkable there's

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<v Speaker 3>a remarkable instance of this where you have an industry

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<v Speaker 3>representative actually fantasizing, and I'm using this word very advisedly,

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<v Speaker 3>fantasizing that they'll be able to get the public to

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<v Speaker 3>rep bananas and apples in plastic packaging in the name

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<v Speaker 3>of hygiene and fighting the COVID pandemic. And I think

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<v Speaker 3>that that is a testament to how overly optimistic the

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<v Speaker 3>industry is about how.

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<v Speaker 6>It's going to be able to exploit COVID nineteen to

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<v Speaker 6>fill that gap in plastic demand.

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<v Speaker 4>Trade groups like the FPM and the American Chemistry Council

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<v Speaker 4>moved quickly to push out studies to state governors and

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<v Speaker 4>to the media showing that reusable bags might be COVID

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<v Speaker 4>spreaders governors in some conservative states main I'm looking at

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<v Speaker 4>you actually moved quicker to ban reusable bags grocery stores

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<v Speaker 4>and toss plastic bag bands. Then they did to implement

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<v Speaker 4>social distancing and masking guidelines. All of those studies were

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<v Speaker 4>industry funded, most of them were a decade or more old,

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<v Speaker 4>and none of them showed anything at all about the coronavirus.

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<v Speaker 4>One literally looked at a single reusable bag that someone

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<v Speaker 4>had vomited next to solid science there but the lack

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<v Speaker 4>of evidence did not stop the industry from succeeding in

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<v Speaker 4>its goal, at least for a while, which had some

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<v Speaker 4>environmental advocates worried the shift away from disposable bags was

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<v Speaker 4>a hard one behavioral change.

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<v Speaker 3>The industry's goal is clearly to reverse a behavioral shift

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<v Speaker 3>that was starting to really take root and grow.

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<v Speaker 4>But six months or so into the pandemic, the messaging

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<v Speaker 4>around plastic bags stopped working so well. Stores started to

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<v Speaker 4>allow reusable bags again, and it didn't take long for

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<v Speaker 4>consumers to get back on board with it. The dream

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<v Speaker 4>of wrapping every piece of fruit in plastic never materialized.

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<v Speaker 3>The challenge to face and the reason they're likely to fail,

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<v Speaker 3>is that the opposition is coming not only from consumers,

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<v Speaker 3>but increasingly from the communities who are on the front

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<v Speaker 3>lines of build out of plastics, who are working to

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<v Speaker 3>stop these plants from being built, increasingly from investors who

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<v Speaker 3>are increasingly skeptical about about the prospects of.

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<v Speaker 6>Sinking money into this industry.

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<v Speaker 3>Clearly, the industry's goal is to see this opportunity to

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<v Speaker 3>trigger a short term increase in packaging that takes advantage

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<v Speaker 3>of fear. The problem that they face is that fear

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<v Speaker 3>is momentary.

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<v Speaker 4>The pandemic isn't quite over yet. But what the early

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<v Speaker 4>numbers are telling us is that the industry's COVID strategy

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<v Speaker 4>did not work. They were able to drive a momentary

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<v Speaker 4>spike in demand, but as Muffett predicted, it was in

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<v Speaker 4>fact momentary, and according to carbon tracker analyst Kingsmill Bond,

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<v Speaker 4>although the pandemic drove demand up in some areas, it

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<v Speaker 4>actually drove it down in others, so much so that

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<v Speaker 4>it canceled out the increase the plastic needed for new cars,

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<v Speaker 4>for example, or planes, and that actually made for an

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<v Speaker 4>overall decline in demand for plastic. Here's Bond explaining the

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<v Speaker 4>impacts of that decline.

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<v Speaker 8>What's the impact on plastic demand of increasing demand for

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<v Speaker 8>medical plastic for ppeus and gloves and stuff. And then

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<v Speaker 8>what's the impact of lower demand because of the economic shocks.

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<v Speaker 8>So we're buying less cars and we come to the shops,

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<v Speaker 8>so we're buying less less clothes, and because you use

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<v Speaker 8>a thousand times or more plastic in a car to

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<v Speaker 8>what you use in a mask, the actual impact is

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<v Speaker 8>to have a four percent decline day estimate in plastics

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<v Speaker 8>demand this year, and not to state the obviously a

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<v Speaker 8>four percent decline in demand and a four percent increase

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<v Speaker 8>in capacity to you know, things looking quite ugly.

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<v Speaker 4>So the industry continued to build out more plastic manufacturing

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<v Speaker 4>capability and it anticipated an increase in demand, but instead

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<v Speaker 4>there's been a four percent decrease in demand at the

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<v Speaker 4>same time that we've seen a four percent increase in

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<v Speaker 4>capacity last and eight percent gap between supply and demand,

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<v Speaker 4>which is a pretty big gap. The industry, of course,

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<v Speaker 4>still thinks it's going to close that gap.

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<v Speaker 9>Do you think that even before this pandemic that they

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<v Speaker 9>are also just sort of convinced in their abilities to

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<v Speaker 9>create demand where there is then that like they just

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<v Speaker 9>figured that they would that they would find a way.

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<v Speaker 3>I think that is certainly the case, and I think

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<v Speaker 3>it is the case for the very simple reason that

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<v Speaker 3>for decades that strategy has worked.

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<v Speaker 6>That strategy has been effective for decades.

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<v Speaker 3>This is an industry that has been very good at

0:15:01.920 --> 0:15:06.280
<v Speaker 3>creating consumer demand, creating markets where they didn't exist, for

0:15:06.800 --> 0:15:10.880
<v Speaker 3>products that people weren't looking for and didn't necessarily need.

0:15:11.400 --> 0:15:13.840
<v Speaker 3>And so it's you know, it may come across as

0:15:13.880 --> 0:15:17.760
<v Speaker 3>over confidence, but it's overconfidence been built on decades of

0:15:17.800 --> 0:15:22.880
<v Speaker 3>an industry effectively exploiting its understandings of consumer behavior.

0:15:24.040 --> 0:15:27.520
<v Speaker 4>For decades, the fossil fuel industry has successfully told one

0:15:27.880 --> 0:15:33.240
<v Speaker 4>story that it simply supplies a demand that you are

0:15:33.280 --> 0:15:36.120
<v Speaker 4>the one buying and using its products. So if you're

0:15:36.160 --> 0:15:39.280
<v Speaker 4>worried about the impacts of those products, all you need

0:15:39.320 --> 0:15:43.440
<v Speaker 4>to do is reduce your consumption. And don't get me wrong,

0:15:43.520 --> 0:15:48.080
<v Speaker 4>it's absolutely necessary for individuals to reduce their carbon footprints,

0:15:48.400 --> 0:15:51.400
<v Speaker 4>especially those of us in the global North, and especially

0:15:51.440 --> 0:15:56.560
<v Speaker 4>the wealthiest individuals. But that action in the absence of

0:15:56.680 --> 0:16:02.160
<v Speaker 4>regulating supply will never work because the industry doesn't just

0:16:02.360 --> 0:16:07.160
<v Speaker 4>respond to demand. It works really hard to generate.

0:16:06.760 --> 0:16:11.240
<v Speaker 3>It's pervasive and It's a corrosive myth, this this idea

0:16:11.560 --> 0:16:16.680
<v Speaker 3>that oil and gas companies and plastics producers are just

0:16:16.840 --> 0:16:18.320
<v Speaker 3>producing their products because.

0:16:18.040 --> 0:16:18.920
<v Speaker 6>The demand is there.

0:16:19.400 --> 0:16:22.280
<v Speaker 3>When you look behind that, what you find is, in truth,

0:16:22.640 --> 0:16:27.560
<v Speaker 3>these companies have, you know, very detailed strategies to create

0:16:27.600 --> 0:16:31.360
<v Speaker 3>the demand. And nowhere is that clearer than in the

0:16:31.360 --> 0:16:34.080
<v Speaker 3>context of plastics. You know, there's no other commodity where

0:16:34.080 --> 0:16:37.920
<v Speaker 3>that story of we've got we've got a product, we

0:16:38.040 --> 0:16:40.880
<v Speaker 3>need a market for it is clear. And we're seeing

0:16:40.920 --> 0:16:44.960
<v Speaker 3>that with the massive buildout of new infrastructure for plastics

0:16:44.960 --> 0:16:48.440
<v Speaker 3>here in the US, not because we need it, there's

0:16:48.480 --> 0:16:52.400
<v Speaker 3>a glut of plastics on the market, there's no excess demand,

0:16:52.880 --> 0:16:56.040
<v Speaker 3>but because there's all of this cheap natural gas, and

0:16:56.120 --> 0:16:59.520
<v Speaker 3>so the industry builds out this infrastructure and then looks

0:16:59.880 --> 0:17:05.440
<v Speaker 3>to persuade young people to buy more plastics, or increasingly,

0:17:06.040 --> 0:17:09.800
<v Speaker 3>to persuade the Global South to buy more plastics, all

0:17:09.840 --> 0:17:14.200
<v Speaker 3>while blaming the Global South and Asia for the plastics crisis.

0:17:15.240 --> 0:17:17.880
<v Speaker 3>I think one of the starkest ironies in our work

0:17:17.880 --> 0:17:24.240
<v Speaker 3>on plastics has actually been seeing simultaneously Exon and the

0:17:24.240 --> 0:17:27.879
<v Speaker 3>oil industry and the American Chemistry Council saying yes, plastics

0:17:27.920 --> 0:17:31.560
<v Speaker 3>is a problem, but the problem is originating in China

0:17:31.600 --> 0:17:34.639
<v Speaker 3>and Asia. And on the other hand, finding a speech

0:17:34.760 --> 0:17:38.879
<v Speaker 3>from a vice president of Exxon Mobile delivered in China

0:17:39.040 --> 0:17:42.439
<v Speaker 3>saying Asia needs more plastics and we Exon Mobile want

0:17:42.480 --> 0:17:45.800
<v Speaker 3>I help you make them. And for anyone who has

0:17:45.880 --> 0:17:49.560
<v Speaker 3>worked for as long as I have in the climate context,

0:17:49.960 --> 0:17:53.320
<v Speaker 3>that story that blamed China, story that blame the individual,

0:17:53.359 --> 0:17:56.400
<v Speaker 3>blame the consumer, story is very very familiar.

0:18:00.200 --> 0:18:03.480
<v Speaker 4>Can people do? How are folks like Diane Wilson and

0:18:03.560 --> 0:18:09.560
<v Speaker 4>Texas Sharon Levine in Louisiana managing to successfully fight back?

0:18:09.760 --> 0:18:12.280
<v Speaker 4>And what can their fights tell us about the global

0:18:12.320 --> 0:18:16.840
<v Speaker 4>push to tackle this problem? That story next time, next

0:18:16.840 --> 0:18:18.280
<v Speaker 4>time on drilled.

0:18:19.560 --> 0:18:23.280
<v Speaker 1>The twenty million that we put into this co op

0:18:24.200 --> 0:18:26.879
<v Speaker 1>was a chance at reviving our to be auson.

0:18:27.800 --> 0:18:29.399
<v Speaker 6>I mean, it's going to devastate it.

0:18:29.480 --> 0:18:31.639
<v Speaker 4>I mean I think for a long time we're just

0:18:31.680 --> 0:18:35.639
<v Speaker 4>going to be playing whackamall with facilities that have already

0:18:35.680 --> 0:18:41.359
<v Speaker 4>been proposed. Wow, okay, so there's already twelve other industrial.

0:18:40.840 --> 0:18:43.960
<v Speaker 9>Sites in Saint James Parish.

0:18:43.480 --> 0:18:48.040
<v Speaker 2>Right, and more being proposed, like including SoC We's even

0:18:48.080 --> 0:18:55.480
<v Speaker 2>a methanol another pet can facility just Downriver from Formosa.

0:18:55.800 --> 0:19:00.119
<v Speaker 4>Drilled is an original production of the Critical Frequency podcast Network.

0:19:00.400 --> 0:19:04.600
<v Speaker 4>The show is reported, written, and hosted by me Amy Westervelt.

0:19:04.840 --> 0:19:08.439
<v Speaker 4>Our producer this season is Juliana Bradley. Our editor is

0:19:08.520 --> 0:19:12.280
<v Speaker 4>Julia Ritchie. Our theme song this season is Death Song

0:19:12.440 --> 0:19:16.320
<v Speaker 4>by be Beeman. Additional music for the season composed by

0:19:16.359 --> 0:19:20.360
<v Speaker 4>Elliott Peltzman. Our artwork for the season is done by

0:19:20.400 --> 0:19:24.960
<v Speaker 4>Matthew Fleming. Our First Amendment attorney is James Wheaton at

0:19:24.960 --> 0:19:29.480
<v Speaker 4>the First Amendment Project. You can find additional reporting and

0:19:29.640 --> 0:19:32.639
<v Speaker 4>photos for this season on our Twitter feed at We

0:19:32.800 --> 0:19:37.320
<v Speaker 4>Are Drilled, or online at drillednews dot com. If you're

0:19:37.359 --> 0:19:40.199
<v Speaker 4>a fan of the show, please consider supporting us in

0:19:40.359 --> 0:19:43.960
<v Speaker 4>two ways. One, if you want to spend some money

0:19:44.040 --> 0:19:47.240
<v Speaker 4>and get some extra bonus content at learn the episodes,

0:19:47.359 --> 0:19:51.159
<v Speaker 4>check out our patreon at patreon dot com slash Drilled.

0:19:51.840 --> 0:19:54.359
<v Speaker 4>You can also support us by giving us a rating

0:19:54.520 --> 0:19:58.000
<v Speaker 4>or review in Apple Podcasts. It really helps us find

0:19:58.040 --> 0:20:02.720
<v Speaker 4>new listeners and combat the army of climate denier trolls

0:20:02.760 --> 0:20:06.199
<v Speaker 4>that are constantly trying to tank our ratings. Thanks for

0:20:06.240 --> 0:20:46.000
<v Speaker 4>doing that, and we'll see you next week.