Impact of COVID-19 on Economy, Industry and Company :
The emergence of novel coronavirus has affected the global economy, industry dynamics and company’s top line. The entire ecosystem has to suffer the impact of this pandemic disease which would result in significant demand & supply gap, production delay and weak consumer demand of end products across industries. At Bizizz Market Research, our analyst has done extensive research across industries and identify various methodologies which would assist C-Level executive to counter this ongoing threat and make informed business decision.
Kindly contact us to know more details: https://www.bizizzmarketresearch.com/contact
The Demand For Oil Storage Market Was Valued At US$ XX Mn In 2019 And It Is Anticipated To Expand At A CAGR Of 3.2% During The Forecast Period.
Surge in the demand of oil products such as gasoline, diesel, kerosene, and aviation turbine fuel is driving the global oil storage terminals market. Increase in automotive sales among the developing countries that includes China, India, and Brazil could be a key force in the growth of diesel and gasoline market share. However, the advancement of the construction industry and industrial category among developing and under-developed economies could support in the growth of diesel during the forecast period. Expansion of aviation and domestic & international air traffic would contribute in the rise of demand in aviation turbine fuel worldwide. It was evident that there is an increase in the investments in petroleum offerings has increased its production as well as storage capacities.
Reduction of crude oil prices and increase in demand for petroleum products supports in rising investments in crude oil refineries worldwide. However, refiners that are existing have a huge investment in order to advance their storage facilities for taking significant profit margins due to the price fluctuations in the market that would boost the market demand for oil storage infrastructure. These strategic moves by the oil refineries could support the governments at the time of price fluctuation and gain higher market value in the global platform. Such reserves act as a contingency reserve to the region at the time of emergency.
An increase in the investments for exploration of unconventional oil resources in consideration of the decline in oil imports by countries shall drive the demand for oil reserves. Such as estimation made by EIA on shale production across the nation in the Eagle Ford region, is accounted for 7,000 bpd to about reach 1.43 million bpd of production during 2019. It is significantly contributing to the monthly output from early 2016. Shale production in 2019 is accounted to grow by 11,000 bpd to 1.39 million bpd in the U.S. North Dakota’s Bakken area. Expansion of oil storage infrastructure accounts in the volatility of oil and gas prices could stimulate the oil storage industry growth.
In terms of End-users, Gasoline segment is anticipated for higher demand during the forecast period.
Based on end-use, the market is segmented into crude oil, gasoline, aviation fuel, middle distillates, LNG, and LPG. The gasoline oil storing facility is set to expand over 3% by 2024. Increasing demand for diesel and petrol in the automobile and transportation industry will drive industry growth. For instance, as per the U.S. EIA, in 2019, the country consumed around 3.40 billion barrels of motor gasoline, with an average of 9.32 million barrels per day. In addition, growing industrialization and urbanization along with the affordable price structure will further complement the industry dynamics.
The exponential surge in the demand for numerous petroleum products with a rapid increase in the penetration of new refining facilities will drive the crude oil storage industry over the forecast period. For instance, as per the BP Stats, the oil consumption in the APAC region has increased to 34,574 thousand barrels per day in 2017 when compared to 27,967 thousand barrels per day in 2010. In addition, growing private investments across downstream sectors will further proliferate the business outlook.
Oil Storage Market in Middle East & Africa Accounted for A significant Share In 2019 And Is Expected to Remain Dominant during the Forecast Period
Political unrest in the Middle East and North Africa (MENA) has contributed to higher oil prices and added instability to energy markets. Supply disruptions and fears about the possible spread of unrest to major exporters have pushed prices higher. Even if the crisis abates, some risk premium may persist to the degree that market participants fear such an event could occur again. Higher oil prices can negatively impact the economies of oil-importing countries. The cost of oil is the primary determinant of gasoline prices and prices of other petroleum products; increased costs can be a burden on households and many businesses. Rising import costs for oil, natural gas, and petroleum-based products can be a drag on economic growth by negatively affecting the trade balance. This may slow the current economic recovery, though it is not expected to derail it. Many energy policy options to address vulnerability to disruptions and higher prices, such as what is taking place in MENA, are long-term in nature. It takes a long time for the energy sector to make material shifts, be they through renewables, efficiency, or increased domestic oil and gas production. Short-term energy policy options (as opposed to the broader national security and diplomatic issues) are limited. Oil exporters with spare production capacity, particularly Saudi Arabia, may make short-term decisions to try to moderate prices by adjusting production levels, but their ability and willingness to do so are often based on internal decisions. For more information on the political unrest in MENA, see the CRS Issue in Focus page on the Middle East and its associated reports.
Key players operating in the global oil storage market includes CST Industries, ZCL Composites, Inc., Synder Industries, Denali Incorporated, Synalloy Corporation, LF Manufacturing, Superior Product Company, Inc., Tianjin Anson International Co., Ltd., Elixir, Roth Industries Company, Ergil, Vopak, Waterford Product & Fabrication, Sri Ranga Industries, Hydrotherm Engineering Services
Key market segment of Oil Storage:
- Crude Oil
- Aviation Fuel
- Liquefied Petroleum Gas (LPG)
- Carbon Steel
- Fiberglass Reinforced Plastic (FRP)
- North America
- Asia pacific
- Middle east and Africa
- Latin America