Global Oil Storage Market Size By Product (Fixed Roof, Floating Roof, Spherical), By End Use (Crude Oil, Aviation Fuel, Gasoline), By Geographic Scope And Forecast

Oil Storage Market Size And Forecast

Oil Storage Market size was valued at USD 3,765.8 Million in 2020 and is projected to reach USD 5,354.4 Million by 2028, growing at a CAGR of 4.49% from 2021 to 2028.

The growth in global oil production, coupled with periodic fluctuations in crude oil prices, drives the demand for oil storage. The Global Oil Storage Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Oil Storage Market Definition

Oil storage is a critical component of the midstream sector in the oil industry. It involves the storage of produced oil in tanks or terminals, either above ground or underground, before it is further transported to refineries or distribution points. Oil storage facilities play a crucial role in ensuring a steady supply of oil, managing market volatility, and maintaining strategic reserves. The storage of oil serves multiple purposes.Oil storage facilities allow for the temporary storage of excess oil during periods of oversupply. This helps to balance supply and demand dynamics in the market and stabilize prices. When oil production exceeds immediate demand, the excess oil can be stored until market conditions improve.

Many countries maintain strategic petroleum reserves to ensure energy security and mitigate the impact of supply disruptions. These reserves act as a cushion during emergencies, such as geopolitical tensions, natural disasters, or disruptions in oil production or transportation. Strategic reserves provide a strategic advantage by reducing dependence on foreign oil supplies and ensuring a reliable domestic energy supply. Oil storage is also used to manage seasonal variations in oil demand. For example, during the winter months, when heating oil demand increases, oil can be stored during the summer months when demand is relatively lower. This allows for efficient utilization of refining and distribution infrastructure and ensures a continuous and reliable supply of oil throughout the year.

Oil storage facilities are often used by traders and speculators to take advantage of price differentials between different time periods. They can buy oil at a lower price and store it, anticipating an increase in prices in the future. This activity, known as contango trading, can be profitable if the price difference between the spot market and the future market is significant. Oil storage facilities can vary in size and capacity, ranging from small on-site tanks used by individual well operators to large-scale terminals with massive storage capacity. These facilities are equipped with safety measures to prevent leaks, spills, and environmental contamination. Monitoring systems and advanced technology are employed to ensure the proper handling and storage of oil, maintaining its quality and integrity.

Global Oil Storage Market Overview

The demand for high storage capacities for oil is on the rise due to various factors such as increasing oil production, expanding refining capacities, and geopolitical uncertainties. Oil storage facilities are crucial for maintaining strategic reserves, ensuring a steady supply of oil, and mitigating price fluctuations. The need for large storage capacities is expected to drive the growth of the Oil Storage Market. The growth in global oil production, coupled with periodic fluctuations in crude oil prices, drives the demand for oil storage. During periods of oversupply and low oil prices, storage facilities are essential for storing excess oil until market conditions improve.

As a result, the Oil Storage Market experiences growth during such periods. Governments worldwide are focusing on reducing greenhouse gas emissions and ensuring energy security. This has led to initiatives encouraging the storage of oil to protect national economies during energy crises. Strategic oil storage helps maintain a stable supply in times of disruptions, ensuring energy security and minimizing economic impacts.Despite the positive outlook, the growth of the Global Oil Storage Market is hindered by certain factors. Establishing and maintaining oil storage facilities involve significant investment and maintenance expenses.

These costs can act as a deterrent to market growth, particularly for smaller players or in regions with budget constraints. The high costs associated with storage infrastructure limit the expansion of the Oil Storage Market. However, there are opportunities for major players in the market. Advancements in storage technologies and investments in the development of storage facilities offer opportunities for market growth. Innovation in storage methods, such as improved tank designs and monitoring systems, can enhance storage capacities and efficiency. Additionally, the construction of new pipelines and storage terminals can further increase the storage capacity of tanks, creating opportunities for industry players.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global Oil Storage Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. The Porter’s five forces model can be used to assess the competitive landscape in the Global Oil Storage Market, gauge the attractiveness of a certain sector, and assess investment possibilities.

Global Oil Storage MarketSegmentation Analysis

The Global Oil Storage Market is segmented on the basis of Product, End Use, And Geography.

Oil Storage Market, By Product

• Fixed Roof
• Floating Roof
• Spherical
• Others

Based on Product, the market is segmented into Fixed Roof, Floating Roof, Spherical, and Others. In the Global Oil Storage Market, floating roof storage tanks hold the largest market share. Floating roof tanks are widely used for storing various types of oil and petroleum products. Floating roof tanks are storage tanks with floating roof that floats on top of the stored oil.

The roof moves up and down with the level of oil, minimizing the vapor space above the liquid and reducing the risk of evaporation. The dominance of floating roof tanks in the Global Oil Storage Market can be attributed to their superior performance in reducing vapor losses, ensuring environmental safety, and mitigating fire hazards. These tanks are widely adopted by industry players and storage operators to meet regulatory requirements, enhance operational efficiency, and maintain the integrity of stored oil.

Oil Storage Market, By End Use

• Crude Oil
• Aviation Fuel
• Gasoline
• Middle Distillates
• LNG
• LPG

Based on End Use, the market is segmented into Crude Oil, Aviation Fuel, Gasoline, Middle Distillates, LNG, and LPG. In the Global Oil Storage Market, the largest market share is held by the end-use segment of crude oil storage. Crude oil storage plays a crucial role in the oil industry, ensuring a steady supply of oil, managing market dynamics, and supporting the overall stability of the energy sector.

The demand for crude oil storage is driven by factors such as fluctuations in global oil production, geopolitical uncertainties, economic conditions, and the overall energy landscape. The largest market share in the Global Oil Storage Market is attributed to the significant volume of crude oil produced worldwide and the need for adequate storage infrastructure to manage the supply-demand balance.

Oil Storage Market, By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Based on Regional Analysis, the Global Oil Storage Market is classified into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The Asia Pacific region has emerged as the largest market for oil storage due to several factors. The Asia Pacific region is witnessing significant growth in oil consumption, driven by rapid industrialization, urbanization, and economic development in countries such as China, India, Japan, South Korea, and Southeast Asian nations.

The growing energy needs of these countries have led to a surge in oil imports and the subsequent need for storage infrastructure to ensure a stable and reliable supply of oil. The Asia Pacific region is strategically located between major oil-producing regions such as the Middle East and oil-consuming regions like North America and Europe. This geographical advantage makes it a crucial hub for oil trade and transportation. The region’s extensive oil storage capacity enables it to store and distribute oil to various destinations, meeting the demands of both regional and global markets.

Key Players

The “Global Oil Storage Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as CST Industries, Snyder Industries, NOV Inc., Ascent Industries Co., LF Manufacturing, Superior Tank Co., Inc, Tianjin Anson International Co., Ltd., ElixirPro Engineering Solutions Pvt. Ltd., Roth Industries GmbH & Co. KG, ERGIL, Royal Vopak, Waterford Tank & Fabrication, SHAWCOR, T BAILEY, INC, Fisher Tank Company.

Our market analysis also entails a section solely among others. Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide insight to the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

Partnerships, Collaborations and Agreements

• In September 2016, Sunoco Logistics Partners L.P. (NYSESXL) (the “Partnership”) and the Vitol Group (“Vitol”) today announced the Partnership’s strategic acquisition of Vitol’s Permian Basin crude oil system. The Partnership entered into an agreement with Vitol Inc. to purchase an integrated crude oil business in West Texas for approximately $760 million-plus working capital
• In December 2020, Oiltanking in partnership with Matrix Global (“Matrix”) successfully completed an online electronic auction for Jet Fuel/USLD storage capacity at the Oiltanking Copenhagen facility. The volume of storage capacity sold through the auction was 77,150 cbm per month for Calendar 2021.

Mergers and Acquisitions

• In July 2021, Oiltanking is proud to announce that it has enhanced its position as a leading global independent storage partner for gases by acquiring Antwerp Gas Terminal N.V., one of Europe’s largest independent LPG and petrochemical gas terminals.

Product Launches and Product Expansions

• In April 2018, Buckeye Partners L.P. announced plans to expand its Chicago Complex facility. The company invested approximately US$ 80 Mn in the expansion, as it is a key logistics hub in the Midwest. The expansion includes increased storage, component blending, throughput capacity, and service capabilities in the Chicago Complex to support the rising needs of customers. The expansion also includes the construction of approximately 600,000 barrels of additional product blending tankage as well as the build-out of an existing truck rack.
• In December 2019, Magellan Midstream Partners, L.P. announced a plan to expand the supplemental open season to solicit additional commitments for transportation volume on the western leg of its refined petroleum products pipeline system in Texas. The company is in the process of expanding the capacity of its west Texas refined products pipeline system to approximately 175,000 barrels per day (BPD) from its current capacity of 100,000 BPD.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Report Scope