Oil and Gas Storage Market is expected to grow USD 13,958.50 million at a CAGR 4.20% during the forecast period 2022-2030. Oil and gas storage is a feature of the oil and gas industry's midstream. The oil extracted from upstream companies is stored in various ways and then transferred wherever it is needed in this process. Storage tanks are also used by downstream industries for tasks such as collecting oil for further processing and marketing. During the projected period, the oil and gas storage market is expected to increase significantly. During the projection period, demand for oil and gas storage devices is expected to increase significantly. The urgent requirement for storage space for critical petroleum reservoirs is one of the factors driving demand for oil and gas storage.
Furthermore, the market is likely to be driven by rising demand for natural gas storage systems. Natural gas production is quickly increasing, and demand is being driven mostly by its burgeoning usage in the power generating and transportation industries, among others. Natural gas can be kept for an endless period. Natural gas is stored in subterranean storage facilities since it is not usually needed straight away. Furthermore, the US Department of Energy and business partners have investigated the viability of storing chilled natural gas in a hard-rock mine. If applied to proposed or existing bedded salt storage caverns, the concept of cooling the gas before storage might greatly enhance storage capacity within the present volume of natural gas.
The factors driving the demand for oil & gas storage is the urgent need for storage space for strategic petroleum reservoirs (SPRS). Due to the outbreak of COVID-19, the global oil & gas market is facing an unprecedented challenge of storing surplus oil. The market players have begun running out of storage space. For instance, in May, the US West Texas Intermediate entered the negative territory for the first time in history, and the traders had to pay to get oil taken off their hands. The oil surplus has further created a demand shock in energy markets with both onshore and offshore storage facilities filling up quickly.
Similarly, in India, refiners are flooding the market with petroleum products that do not have enough buyers in the absence of demand in the current lockdown situation. Additionally, the storage capacity in the country is almost full at the fuel stations and other sites created by refiners. It has also been estimated that the almost 85-million-barrel storage capacity of state-run companies is already full. Various measures are being taken by refiners and other oil companies to cope with this challenge. For instance, oil companies in Texas used steel tanks to store the surplus oil, which was earlier kept idle when shale producers stopped drilling. Currently, the oil companies are trying to store as much oil as possible in these tanks to handle the space crunch. Factors such as these are likely to fuel the growth of the global Oil and Gas Storage Market, especially in the near future, when the demand is not normal, creating a need for more storage space.
Moreover, the increasing demand for natural gas storage systems is also expected to drive the Oil and Gas Storage Market. The production of natural gas is growing rapidly, and the increase in demand is mainly driven by its growing applications in the power generation and transport industries, among others. Natural gas can be easily stored for indefinite periods. Natural gas is not always needed right away, so it is stored in underground storage facilities. Moreover, the US Department of Energy and its industry partners have checked the feasibility of storing chilled natural gas in a mined, hard-rock facility. The concept of chilling gas before storage, if applied to planned or existing bedded salt storage caverns, could significantly increase the storage capacity within the existing volume of natural gas. However, due to the lack of demand in the last few months, many countries are facing gas storage problems. For instance, China wants to procure more natural gas to meet the surging demand post-COVID-19. The limited storage capacity is making it difficult for the country to cope with the supply crunches in the winter months when the demand surges to heat homes. China’s lack of storage capacity is restricting the gas supply, while its total underground storage capacity available is significantly lower. Hence, more storage space needs to be discovered to cope with the surplus challenge.
Additionally, the exploration of unconventional reservoirs is expected to present significant opportunities for the global oil and gas storage market. Offshore oil & gas fossil fuel production is expected to increase at a steady rate during the study period due to the increasing need for fossil fuels. Furthermore, shale production techniques such as fracking are witnessing increased demand from countries across the globe. For instance, in May 2018, Saudi Aramco (Saudi Arabia) signed a contract with Halliburton (US) to handle its hydraulic fracking needs in its unconventional gas fields. China has also been investing substantially in unconventional reservoirs to reduce its dependence on imported oil & gas. For instance, in August 2019, the China National Petroleum Corporation (China) started drilling its first shale oil well in the South-Western province of Sichuan in China.
Similarly, several countries across the world, such as Canada, Australia, and Saudi Arabia, are expected to gradually increase their exploration activities in such unconventional reserves, which involve shale, deep-water, and other reservoirs. Conventional oil & gas reservoirs are being depleted at a steady rate, which is prompting stakeholders in the oil & gas industries from various countries to explore unconventional reservoirs, which is expected to create growth opportunities for the players in the reservoir analysis market. The increasing exploration would require storage facilities for oil & gas. Additionally, it is anticipated that after the first quarter of 2021, the demand for oil & gas will increase, and storage space will be required to accommodate the increasing oil & gas production. Thus, the exploration of unconventional reservoirs is expected to create a growth opportunity for the players operating in the global oil and gas storage market during the study period.
The Prominent Players in the Global Oil and Gas Storage Market are Royal Vopak N.V., TechnipFMC Plc, Magellan Midstream Partners, L.P., John Wood Group Plc, The Vitol Group, WorleyParsons Limited, Brookfield Infrastructure Partners, Centrica Plc, Buckeye Partners, and Oiltanking.
The global oil and gas storage market is segmented based on product type, storage type, and region. Based on product type, the global Oil and Gas Storage Market has been segmented into oil and natural gas. Based on storage type, the global Oil and Gas Storage Market has been segmented into aboveground and underground.
Geographically, the global oil and gas storage market has been segmented into five major regions, namely North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America is estimated to hold the major market share during the forecast period, owing to the increasing per capita energy consumption, the reduction in crude oil prices, and the increasing exploration and production of oil & gas, which is likely to drive the growth of the oil and gas storage market in the region. According to the BP Statistical Review of World Energy report, 2019, in North America, the primary energy consumption per capita increased by 1.9% from 235.3 Gigajoules per capita (GJ/Capita) in 2017 to 239.8 GJ/Capita in 2018. In addition to this, oil production in the region increased by 12.1% in 2018 from 20.16 million barrels per day (B/D) to 22.59 million B/D in 2018. According to the US Energy Information Administration (EIA), in 2018, approximately 6.44 million B/D of crude oil was produced from tight oil resources in the US. Moreover, the development of strategic petroleum reserves and the increase in oil demand is expected to create growth opportunities in the oil and gas storage market.
The MRFR report for the global oil and gas storage market covers extensive primary research. This is accompanied by a detailed analysis of qualitative and quantitative aspects by various industry experts and key opinion leaders to gain deeper insights into the market and industry performance. The report gives a clear picture of the current market scenario, which includes the historic and forecasted market size, in terms of value and volume, technological advancements, macroeconomics, and governing factors of the market. The report provides comprehensive information about the strategies of the top companies in the industry, along with a broad study of the different market segments and regions.
|Market Size||2030: USD 13,958.50 Million|
|CAGR||2030: 4.20 % CAGR|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type and Storage Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Royal Vopak N.V., TechnipFMC Plc, Magellan Midstream Partners, L.P., John Wood Group Plc, The Vitol Group, WorleyParsons Limited, Brookfield Infrastructure Partners, Centrica Plc, Buckeye Partners, and Oiltanking.|
|Key Market Opportunities||Increase in oil demand|
|Key Market Drivers||Development of strategic petroleum reserves|
The oil and gas storage market is poised to mark 4.2% CAGR.
The valuation of the oil and gas storage market is supposed to be USD 13,958.50 Million by 2030.
The segments of the oil and gas storage market, on the basis of type, are oil and natural gas.
The storage type-based segments of the oil and gas storage market are underground and aboveground.
The key players assessed to support growth of the oil and gas storage market are Belco Manufacturing Co. Inc. (US), Synalloy Corporation (US), Energy Transfer Partners, LP. (Sunoco Logistics Partners) (US), Columbian TecTank, Inc. (US), L. F. Manufacturing, Inc. (US), Containment Solutions, Inc. (US), Oiltanking GmbH (Germany), Red Ewald Inc. (US), Poly Processing Company, Inc. (US), and ZCL Composites Inc. (Canada).