Market Scope
The new study by Market Research Future (MRFR) suggests that the oil and gas storage industry 2020 can touch a valuation of USD 5.34 billion by 2025, increasing steadily from the value of USD 4.02 billion in 2019. The market is also presumed to perform decently at a rate of 4.11% between 2019 and 2025, which is the assessment period. We will provide COVID-19 impact analysis with the report.
Growth Inducers and Main Deterrents
Covid-19 analysis by MRFR reveals that the energy sector has observed significant revenue loss post the pandemic outbreak. The short term impact has resulted in a curbed demand for oil and gas around the world, leading to reduced prices as well as production. Various companies in the oil and gas industry have brought down their capital expenditures to compensate for the loss. Several countries are coming together to achieve a COVID-19 breakthrough, while doing everything in their capacity to support the oil and gas industry. Market consolidation is the prime focus at present, with the rising acquisition of distressed assets being the response to the current slump. This tactic is expected to help reduce the long-term impact of covid-19 to some extent. More and more players are continuously working on providing reliable, safe supplies of oil and gas, taking into account the short term impact of the COVID-19 on the demand and supply.
Experts anticipate that the oil and gas storage market size can remain fortified in the following years, given the high investments spent by leading companies in oil and gas pipeline projects. The mounting demand for oil and gas is benefitting the market for pipeline network across the world. Pipelines are considered to be the ideal method for long distance transport of oil and gas compared to other modes since it is cost-effective and consumes less energy. The expanding oil and gas piped network is boosting the demand for oil and gas storage across the globe.
The oil and gas market also stands to benefit from the increasing requirement for mega refining hub, low crude oil prices, surge in distribution type facilities, and the elevated degree of product containment. Initiatives like strategic petroleum reserve to stockpile massive volumes of oil and gas also help governments to prevent price hike as well as stock out incident. Moreover, the high availability of gas in some of the developed countries like the United States (U.S.) along with the widespread need for natural gas storage can emerge as the top opportunities for the oil and gas storage industry in the approaching years.
Market Segmentation
The oil and gas storage industry has been considered for product type and storage type.
Depending on the product type, the market has been narrowed down into oil as well as natural gas. Out of these, the lead is projected to be taken by the oil segment, on account of the high dependency on oil as the prime source of energy across various countries.
The storage types covered in the market study are aboveground as well as underground. The market is expected to be led by the aboveground segment during the assessment period, since it is the most preferred storage type for large-scale storage of natural gas and oil.
Regional Insight
North America, APAC or Asia Pacific, MEA or Middle East & Africa, South America and Europe are the primary markets for oil and gas storage across the globe.
North America can capture the biggest share in the global market between 2019 and 2025, on account of the high availability of unconventional wells coupled with the frequent innovations in alternative drilling technologies. The US is one of the most lucrative markets in the region, thanks to the presence of massive hydrocarbon resources in the Gulf of Mexico. Also, significant investments in exploration activities for unconventional resources in line with the drop in the petroleum import from several countries can boost the market dynamics. To illustrate, in the year 2019, the shale production in the U.S. Eagle Ford area was estimated at close to 1.43 million bpd, the highest output since January 2016.
The oil and gas storage industry in APAC can benefit from the mounting concerns with regard to the unfulfilled demand for organized supply disruption and the fluctuating price scenario. The rising focus on expansion of refining facilities to mitigate the gap between demand and supply can also complement the market growth for oil and gas storage in the region.
Leading Companies
Leading contenders within the global market for oil and gas storage include Oiltanking GmbH (Germany), Columbian TecTank Inc. (US), Belco Manufacturing Co. Inc. (US), Containment Solutions, Inc. (US), Energy Transfer Partners, LP. (Sunoco Logistics Partners) (US), Synalloy Corporation (US), Red Ewald Inc. (US), L. F. Manufacturing, Inc. (US), Poly Processing Company, Inc. (US), ZCL Composites Inc. (Canada), to name a few.
Latest News
May 2020
BB Energy (London) recently purchased 250,0000 oil barrels as soon as the US prices declined. This helped the company rake in significant huge profit as it had massive storage capacity compared to other companies. Decline in the demand for oil and gas owing to coronavirus and the lack of storage options resulted in the notable price crash.
Access Report Details @ https://www.marketresearchfuture.com/reports/oil-and-gas-storage-market-3935
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