Switch to chemicals saves oil giants from low energy prices

London

BIG Oil is suddenly Big Chemical. For years, the business of turning gas and crude into the chemicals used to make everything from plastic bags to paint has been a mostly unloved corner of the world's largest oil companies. Now, it's shining, cushioning companies from ExxonMobil to Royal Dutch Shell from the worst energy price slump in a decade.

"Chemicals are coming back on to the radar screen," said Simon Henry, chief financial officer (CFO) at Shell.

In good times, when high oil and gas prices deliver billions of dollars in profits, the chemical business is largely a footnote in the profit and loss account. Today, with most major oil firms losing money in production and exploration units, petrochemicals have become one of the biggest - i…