San Francisco, California, December 07, 2017: A recent business and commerce study by TMR Research has reported that the demand in the global oil storage market will continue to multiply at a notable CAGR during the forecast period of 2017 to 2025, gaining strong traction from continued fluctuations in crude prices, which is enticing major fuel consumers such as the aviation industry to invest and store oil and ensure energy security. The analysts of the report highlight that crude oil prices have fallen from three figure mark in 2012 to just over 50 in the recent years, which is primarily a reflection of doubled domestic production in the U.S. in past couple of years and this decreased fuel prices is promoting various industries to reserve for the future.
In addition to that, there as numerous exploration activities currently underway across the world, and technology has improved radically to detect every fruitful oil resource and extract it efficiently. This scenario once again makes for the need for proper storage facilities. Increasing demand for other petroleum products such as lubricants and gasoline, changing consumer preference for alternative fuels that are ecofriendly and emergence of liquefied natural gas (LNG) that can power marine containers are some of the other factors aiding to the prosperity of the global oil storage market. On the other hand, strict government regulations regarding the usage of fossil fuels, restrictions pertaining to exploration and production activities, and gradual shift of the automotive industry towards the electric options are a few factors obstructing the prosperity of the global oil storage market. Nevertheless, the vendors of the global oil storage market are expected to gain new opportunities from solidified natural gas technology for natural gas storage, growing usage of satellite imagery to quantify storage tanks, and emergence of alternate fuels for greener shipping.
Based on the type of storage, the global oil storage market can be segmented into fixed roof tanks, open top tanks, floating roof tanks, and other storage facilities, whereas product-wise, the market can be bifurcated into crude oil, aviation fuel, gasoline, and middle distillates. On the basis of reserve type, the market for oil storage can be categorized into strategic petroleum reserve and commercial petroleum reserve. Currently, the segment of strategic petroleum reserves constitutes for the maximum share of demand, owing to steadily increasing investment for these reserves from governments across various countries. On the other hand, the segment of commercial petroleum reserves is also projected to have a fruitful future for its vendors as the capacity expansion helps in planning of future oil usage.
Geographically, the region of the Middle East and Africa continues to be most prominent and is expected to retain its dominant position, with strong traction coming from countries such as Iran, Saudi Arabia, UAE, Qatar, Oman, and Nigeria, wherein oil production is surging and hence the prices of oil is decreasing. At the second position is North America, driven by the developed countries of the U.S. and Canada. In the U.S., the production of oil has seen tremendous growth in the past decade owing to high investments for exploration and extraction activities. Asia Pacific is another lucrative region, driven by countries such as China, Japan, Singapore, and South Korea.
As far as the competitive landscape is concerned, the global oil storage market is pretty much consolidated among a handful of players such as Buckeye Partners L.P., NuStar Energy L.P., Oiltanking GmbH, Royal Vopak N.V., and Kinder Morgan Inc. The threat of new players is moderate to low in this market as the market leaders will continue to strengthen their position via collaborations and joint ventures.
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