The Crude Transportation Market involves transporting crude oil from production facilities to refineries as well as export terminals using pipelines, oil tankers, and railroads. Crude oil transportation helps deliver feedstock to meet growing worldwide energy demands and serves as a vital link in petroleum supply chains.
The global Crude Transportation Market is estimated to be valued at US$ 21.58 Bn 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:
Rising worldwide energy needs have led to increasing volumes of crude oil being transported via pipelines, oil tankers, and freight railroads. As global energy consumption rises an estimated 1.5% each year, the need to efficiently transport crude feedstock to refineries and export terminals is growing. This continuing increase in energy demand worldwide is driving expansion of the crude transportation infrastructure and capacity additions.
SWOT Analysis
Strength: The crude transportation market benefits from stable demand for crude oil globally. Developed infrastructure for transportation of crude via pipelines, railways and marine tankers provides connectivity between oil production and refining hubs.
Weakness: High dependence on common carrier pipelines makes the market vulnerable to disruptions caused by planned/unplanned shutdowns or capacity constraints. Transportation of crude via rail and marine tankers is costlier as compared to pipelines.
Opportunity: Investments in expansion of existing pipeline networks and construction of new pipelines can help reduce dependence on more expensive transportation options. Growing need to transport heavier grades of crude long distances opens up opportunities for rail and marine transportation.
Threats: Stringent environment norms pose a challenge for expansion of existing as well as construction of new pipelines. Geopolitical tensions can disrupt major trade routes for marine tankers.
Key Takeaways
The global crude transportation market is expected to witness high growth over the forecast period supported by rising demand for crude oil from refineries.
Regional analysis: The Asia Pacific region is witnessing fastest growth in crude transportation demand on account of rising crude imports by China and India to meet their growing energy needs. Countries like China and India are also investing in strategic storage facilities as well as development of transportation infrastructure to ensure security of crude oil supply.
Key players: 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. The major oil producers are integrating backwards into transportation and storage terminals to secure market access for their production.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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