The global oil and gas storage service market was valued at $XX billion in 2016, and is projected to reach $XX billion by 2022, having a CAGR of 2.6% during the forecast period of 2017 to 2024.
Oil and gas storage refers to the mechanisms employed for the safe storage of both unrefined and refined products which are crude oil, natural gas, gasoline, aviation fuel, naphtha, diesel, kerosene, liquefied natural gas and liquefied petroleum gas. The oil and gas storage service providers are a crucial logistic midway link between the upstream (production and exploration) and downstream (marketing and refining) segments of the oil and gas industry. The storage services provide large tanks, underground and above ground storage facilities, and floating tankers in order to store various crude oil and gas derivatives. The market is entering a highly competitive phase in terms of pricing of services, due to the surge in demand for value- added services and specialized professional supply chain solutions.
The major factor which is stimulating the growth of global oil and gas storage market is surge in crude oil spot prices, which is propelling the oil trading companies and producers to opt for oil and gas storage services until the target spot price is reached. Moreover, the constant growth of the oil and gas trading companies globally, is one of the major driving factors for the growth of the market. According to the U.S. Energy Information Administration, in September- October 2017, a steep rise in the difference between domestic and foreign crude oil prices was observed since 2015. The strategic locations offering storage services stock up millions of barrels of oil, ready to be dispatched at the required destinations. A notable increase in the occupancy rate of oil and gas terminals is expected until the near future. The market is attracting nouveau investments and vendors, due to the scope for high return on investments. The major trend gaining traction in the market is the shifting focus of industry players towards independent oil and gas storage service companies. In addition to this, the delays in the oil and gas pipeline projects also leads the production units to store the energy products for a while. 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. On the other hand, a notable increase in the occupancy rate of oil and gas terminals is expected in the near future. 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 and gas storage service market offers great potential in the near future, owing to the increasing production and stocks of crude oil.
Impact Analysis- 2016 vs. 2024
The global oil and gas storage market is segmented on the basis of product, end use application and geography. By, product, the market is segmented into storage, ancillary and others. On the basis of 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. has emerged out as the leading market for oil and 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.
SOUTH-EAST ASIA OIL AND GAS SERVICE MARKET SIZE AND GROWTH RATE, (2012-2022)
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.
OIL AND GAS STORAGE SERVICE MARKET SEGMENTATION
By Product Type
By End-use application
• United States
• South-East Asia
KEY MARKET PLAYERS
• Royal Vopak
• Magellan Midstream Partners, L.P
• Buckeye Partners, L.P.
• 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.