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Oil Storage Market By Type (Crude oil, Gasoline, Aviation fuel, Naphtha, Diesel, Kerosene) By Material (Steel, Carbon Steel By Product Design (Open Top Tank,Fixed Roof Tank, Floating Roof Tank) - Growth, Future Prospects & Competitive Analysis, 2016-2028

The Global Oil Storage Market report explores the critical analysis of the Oil Storage industry using key parameters. The report consists of investment strategies, the need for investments in the Oil Storage industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the Oil Storage industry, as well as how economic and non-economic barriers are helping the Oil Storage market. Moreover, the report analyses the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses such as porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

oil-storage-market

Key Highlights of the report

How are the major segments performing in the Oil Storage Market?

In 2021, crude oil will be the leading segment. Over the forecast period, increased crude oil storage is anticipated as upstream and midstream demand for the fuel declines and production rises.

In 2021, the carbon steel segment will dominate the market. Since carbon steel is less expensive than stainless steel, it is frequently used to construct oil storage tanks.

In 2021, floating roof tanks will be the leading segment. Floating roof tanks are frequently employed in pumping stations and terminals where crude oil is stabilized at vapor pressures below 11.1 psi.

Which region dominated the Oil Storage Market?

In 2021, North America was one of the major contributors to global oil storage. Because of the region's increasing need for oil stockpiles, rising shale gas exploration and production operations directly impact global market demand. Furthermore, a significant strategic petroleum reserve in the United States is expected to boost regional market growth even further.

What is the competitive environment of the Oil Storage Market?

The emergence of seasoned and international firms has helped to consolidate the oil storage sector. Industry participants invest in research and development projects to produce technologically improved storage tanks. To protect the economy and preserve national security during an energy crisis, public or private companies provide oil storage services for inventories of crude and petroleum products. Increased rig counts and ongoing investments in O&G field exploration and production will improve the prospects for the industry. For instance, in September 2021, the phase 2 storage facility for Brooge Petroleum and Gas Investment Company (BPGIC), a division of Brooge Energy, began operations in the UAE port of Fujairah. All commissioning and testing requirements have been met where crude oil and clean petroleum products are stored. With the phase 2 operations, BPGIC has increased its storage capacity to about 1 million m3, making it the second-largest operator in the area (6.3 million bbl). Similarly, in July 2021, the acquisition of Antwerp Gas Terminal N.V., one of Europe's main independent LPG and petrochemical gas terminals, by Oil Tanking strengthened the company's position as a preeminent global independent gas storage partner.

Executive Summary

How has the decline in global crude oil prices affected the need for oil storage tanks?

Terminals or tanks that store produced or processed oil above or below ground are oil storage facilities. The tanks transfer and process the reservoir through various stages. The type of oil and its characteristics influence the material and structure of tanks. There are several styles of storage tanks, including open-top, fixed roof, floating roof, single skin, double skin, and bunded. The market is driven by falling crude oil prices because, as oil prices fall, more people are expected to store more of it when prices are low, increasing the demand for oil storage. Globally, the average annual price of Brent crude oil increased to USD 70.68 per barrel in 2021, surpassing the average annual price in 2020, when the COVID pandemic's crippled demand caused an oil emergency. The price of crude oil is the one commodity that is most closely watched since it affects costs across the whole production cycle and consumer pricing.

Which are the key investments by the Oil Storage Industry Market players?

Countries are focusing on expanding their storage capacity to fulfill oil demand in the event of an import disruption or a national emergency due to the necessity for strategic petroleum reserves (SPR). For instance, each member of the European Union is obligated to have a strategic oil reserve sufficient to cover 90 days of typical domestic consumption. As the international oil trade is anticipated to rise, governments are projected to expand their investments in storage terminals during the predicted period. China, the largest consumer of crude oil, increased its daily imports to 10.47 million barrels in November 2021 from 8.9 million barrels per day in October, which was the lowest level since September 2018.

Some of the major players in the market are Energy Transfer Partners, LP (Sunoco Logistics Partners), Synalloy Corporation, Columbian TecTank, Inc., Poly Processing Company, Inc., Red Ewald Inc., and ZCL Composites Inc.

What are the Major Driving Factors for the Oil Storage Market?

The global oil storage market is primarily driven by an ongoing improvement in the energy picture and increased worry over providing crude oil for emergencies. The market is expanding due to rising import-export activity in the petroleum sector. Logistics and transportation are essential tasks in the oil and gas sector. Players in this market can expect prospective income prospects due to technical innovation, investment in the construction of storage facilities, and new pipelines for increasing tank storage capacity.

What are the Major Risks for the Oil Storage Market?

The market for oil storage terminals is significantly constrained by the rising use of renewable energy sources to generate electricity. The significant expense involved in building the terminal and maintaining it while it is in use is another factor limiting market expansion for oil storage terminals. However, strict laws governing oil storage in above- and below-ground tanks are anticipated to hinder the industry's expansion.

Which is the Key Material in the Oil Storage Market?

In 2021, the carbon steel segment dominated the oil storage market. 90% of the steel produced worldwide is carbon steel. Oil storage tanks are usually carbon steel since they are less expensive than stainless steel. It is more durable than steel and includes up to 2.1% carbon, making it stronger and tougher. Carbon steel tanks can be lined or painted to increase their chemical and water resistance, enabling them to store most liquids and gases. Low-carbon, medium-carbon, and high-carbon steel are the three main divisions of carbon steel. Mild, or low-carbon, steel has a carbon content of 0.05% to 0.15%. As a result, it is highly flexible and simple to roll, weld, and bend into the necessary forms.

How is the Oil Storage Market performing in regions?

In 2021, the global oil storage market was dominated by North America. Increased shale gas production and development activities directly impact the demand for oil storage. The presence of a sizable U.S. strategic petroleum reserve is anticipated to accelerate regional growth significantly. The capacity of Canada's pipelines and storage facilities has been fully utilized due to the country's rising petroleum production. To meet the needs of domestic oil producers, new oil storage terminals have been proposed for the nation. Additionally, it is anticipated that market growth will be positively impacted by investment activity in the region. It is projected that the availability of a sizable U.S. strategic petroleum reserve will support regional market expansion even more.

Besides, the Asia Pacific is expected to grow significantly over the forecast period. Growing oil and gas demand from the Asia Pacific area's main economies, including China and India, and expanding investments in offshore and onshore operations are expected to boost the industry across the region. Energy and oil-based commodity consumption have increased in China and India. Crude oil contributes significantly to these countries' electricity and energy supplies. South Korea and Singapore are major oil storage hubs in this region.

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Increasing government measures to reduce greenhouse gas emissions and storing oil to protect the national economy during energy crises are among the reasons projected to drive market expansion.

What is the Market Size of Oil Storage regarding value?

The Oil Storage Market is anticipated to grow at a substantial CAGR of 4.10% in the upcoming years. The Global Oil Storage industry was estimated to be worth USD 12739.2 million in 2021 and was expected to be worth USD 16212.37 million by 2028.

What effect does COVID-19 have on the market for Oil Storage?

The new coronavirus has limited market expansion because it has damaged various economies and triggered a lockdown in numerous nations. The closure of industrial producers caused a drop in the demand for fossil fuels in the transportation and aviation industries, which slowed the growth of the oil storage industry. The production processes at both onshore and offshore locations have been put on hold due to the decline in demand for oil and oil-related products. Consequently, the industry shutdown is anticipated to cause construction and upgrade projects for oil storage tank terminals to move forward more quickly.

Segmentation of Global Oil Storage Market-

Global Oil Storage Market – By Type

  • Crude oil
  • Gasoline
  • Aviation fuel
  • Naphtha
  • Diesel
  • Kerosene
  • Liquefied Petroleum Gas (LPG)

Global Oil Storage Market – By Material

  • Steel
  • Carbon Steel
  • Fiberglass-reinforced Plastic (FRP)

Global Oil Storage Market – By Product Design

  • Open Top Tank
  • Fixed Roof Tank
  • Floating Roof Tank
  • Others

Global Oil Storage Market – By Region

  • North America
    • S.
    • Canada
  • Europe
    • Germany
    • France
    • K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East and Africa

Frequently asked questions about the global Oil Storage industry

COVID-19 is expected to affect the global Oil Storage market negatively.

North America accounted for the highest global oil storage market share.

The global oil storage market is primarily driven by an ongoing improvement in the energy picture and increased worry over the provision of crude oil for emergencies.

The crude oil segment had a major share in 2021, with more than 30% of the market revenue share.

The carbon steel segment had a major share in 2021, with more than 40% of the market revenue share.

Oil Storage Market Scope

Report Attribute Details
Market Value in 2021 USD 12739.2 million
Market Value in 2028 USD 16212.37 million
CAGR 4.10%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Oct 2016
Category:  Oil & Gas
Report ID:   58146
Report Format:   PDF
Pages:   120
Rating:    4.2 (60)
Delivery Time: 24 Hours to 48 Hours   
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