As the oil & gas industry keeps on flourishing and expanding its horizons to various markets in the world, either by rail or by pipelines, the need for storage also becomes a necessity, especially when the pipelines remain full. The developments in logistics and increasing production of oil & gas has called upon the need for such storage services around the globe. The production levels are quite high than the storage capacity levels, which is augmenting the growth of this market. The market players involved in such services are a pivotal logistic midway link amid the upstream exploration and production and downstream refining and marketing segments of the oil & gas industry. The rising prices of crude oil is propelling the oil & gas vendors to opt for such storage services. As per the data revealed by the U.S. Energy Information Administration, since 2015 a steep rise in the difference between foreign and domestic crude oil prices was observed. Now-a-days, independent oil & gas storage service providers are gaining more attention and investments, owing to the scope for high return on investments.
Until the target crude oil spot prices are attained, the surge in crude oil spot prices is propelling the oil & gas producers and refineries to opt for storage services. In addition, the oil & gas trading companies are witnessing a business boom all around the globe. This is anticipated to boost the market growth during the upcoming years. Moreover, the occupancy rate of oil & gas terminals is expected to witness an increase, which in turn will fuel the growth of the market. The market growth is also positively impacted by the measured growth of oil & gas pipeline projects because of lack of adequate financial aid. However, high operational costs and upfront investment capital might acts as a serious restraint to the market growth. Moreover, the selection of strategic locations for oil and gas terminals coupled with the fluctuating prices of crude oil and gas might restrain the market growth. Higher profit returns are expected to be gained by the terminals considering geopolitical factors, future exploration projects, and transportation routes while deciding on their location. The oil & gas storage service market offers great potential in the near future, owing to the increasing production and stocks of crude oil.
Some major market players are Royal Vopak, Oiltanking, Magellan Midstream Partners, L.P, Buckeye Partners, L.P., Vitol, Blueknight Energy Partners, CIM-CCMP Group, CLH Group, Dalian Port Corporation Limited, Horizon Terminals limited, International Matex Tank Terminals IMTT , Kinder Morgan, Nustar Energy L.P. and ODFJELL. The key market players are focusing on partnerships, joint ventures, and acquisitions in order to expand their global presence and gain a higher edge than their competitors.
The global oil and gas storage market is mainly segmented on the basis of product type, end use application and geography. On the basis of product type, the market is segmented into storage, ancillary and others. By end use application, the market is categorized into oil and gas. Geographically, the market is segmented into U.S., Europe, Japan, China and South East Asia. The U.S. emerged out as the leading market for oil & gas storage services holding more than 1/4th share of the global market. On the basis of product type, storage is expected to lead the overall market throughout the forecast period.
As the world economy struggles to recover from the pandemic, the vaccination drive spells hope…
UAE based companies and agencies have no option but to penetrate new markets more effectively…
Latest Report on Global Sodium Chloride Injection including Market Landscape, and Market size, Revenues by…
Latest Report on Global Varicose Vein Treatment Devices including Market Landscape, and Market size, Revenues…
Latest Report on Global Colorectal Cancer Therapeutics Market including Market Landscape, and Market size, Revenues by players,…
To celebrate World Poetry Day, International Schools Partnership (ISP) has launched a student Poetry Contest…