Crude oil represents an essential commodity consumed worldwide for various applications ranging from producing gasoline and fuel oil to producing petrochemical feedstocks and lubricants. It requires safe and reliable transportation via pipelines, rail, trucks and marine vessels to supply crude oil to various refineries. The global crude transportation infrastructure plays a key role in meeting the worldwide demand for crude oil and petroleum products. The global Crude Transportation Market is estimated to be valued at US$ 21.58 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing oil and gas exploration activities across the globe have significantly driven the growth of the crude transportation market over the past few years. According to the U.S. Energy Information Administration, the global proved reserves of petroleum increased from 1.7 trillion barrels in 2015 to 1.8 trillion barrels in 2020. This rise in crude oil reserves has resulted in a rise in oil production from various regions worldwide. For instance, the U.S. crude oil production increased from 8.1 million barrels per day in 2010 to around 12.3 million barrels per day in 2019. The increased crude oil production is driving the need for a robust infrastructure for transporting crude oil from production areas to refineries, thereby propelling the growth of the crude transportation market.
SWOT Analysis
Strength: Crude oil transportation through pipelines is a cost effective and safe mode of transportation. It allows bulk transfer of crude oil over long distances.
Weakness: Pipeline infrastructure development requires huge capital investment and regulatory approvals which can delay projects. Pipelines are prone to leakages and sabotage activities.
Opportunity: Growing energy needs of emerging economies in Asia Pacific provides an opportunity to setup new crude oil transportation corridors. Technological advancements help in making pipelines more safe and environment friendly.
Threats: Strict environmental norms can increase compliance cost for pipeline operators. Geopolitical tensions in oil producing regions pose a threat to continuous crude supply.
Key Takeaways
The global crude transportation market is expected to witness high growth. Growing energy demand especially in developing Asian countries and expansion of refining capacity will drive volumes. Countries are focusing on infrastructure development and strategic partnerships to ensure security of crude supply.
Regional analysis: North America dominates currently with a large network of pipelines. The United States meets about two-third of its crude requirements through extensive pipeline networks. The Middle East is also a major source and pipelines are being expanded within the region as well as with key markets like Asia and Europe.
Key players operating in the crude transportation market are ExxonMobil Corporation, Royal Dutch Shell, Chevron Corporation, BP plc, TotalEnergies SE, ConocoPhillips, China National Petroleum Corporation, Saudi Aramco, Rosneft Oil Company, Valero Energy Corporation, Phillips 66, Marathon Petroleum Corporation, PetroChina Company Limited, Kinder Morgan Inc., Enbridge Inc. Major players are investing in strategic partnerships and expansion of pipeline networks to leverage opportunities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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