December 5, 2023

Oil Storage Market: Trends, Size, Share, and Growth Forecast 2030

The global oil storage market is witnessing a significant transformation in the wake of increased demand for crude oil post-COVID-19, as the world economy recovers from the pandemic-induced disruptions. Supply and demand dynamics continue to shape the benchmarked crude oil prices, including Brent crude and West Texas Intermediate (WTI) crude oil. In August 2020, Brent crude oil averaged $44.59 per barrel, compared to $64.28 per barrel in 2019, reflecting the market’s volatility.

The COVID-19 pandemic, which sent shockwaves through the oil industry, led to a historic drop in crude oil prices, with prices even going below zero in April 2020. This unprecedented situation forced sellers to pay buyers to take immediate deliveries, highlighting the importance of storage facilities. A shortage in demand for crude oil-based products such as gasoline, diesel, and jet fuel, coupled with an oversupply of crude oil, prompted oil and gas exploration and production companies to turn to storage facilities. This shift positively impacted oil storage companies and service providers worldwide, favoring the expansion of the global oil storage market.

Increased Demand for Oil Storage Facilities

The scarcity of storage space due to the surge in demand for storage, along with rising storage costs per barrel, has led many crude oil suppliers to pay buyers for immediate delivery. Some have chosen to store crude oil for future trading opportunities in the oil storage market, anticipating price stabilization. Between April and May 2020, the total volume of stored crude oil reached a staggering 3.2 billion barrels. As industries recover from the COVID-19 pandemic, the rebound in demand is expected to deplete the stored oil products in existing facilities.

Fixed Roof Oil Storage Facilities Dominate

Fixed roof tanks have emerged as a preferred storage solution in the global oil storage market due to their cost-effectiveness and minimal equipment requirements. These tanks, designed in compliance with the American Petroleum Institute API-650 specification, consist of a cylindrical steel shell with a cone or dome-shaped roof permanently affixed to the tank shell. This design helps minimize evaporative losses and corrosion, making fixed roof oil storage facilities a popular choice among end-users.

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Strategic Storage Options in the Middle East & Asia

The Middle East & Africa region is witnessing substantial growth in the oil storage market, driven by rising energy requirements and investments in emergency supply stocks. Oman’s plans to build the largest oil storage facility with a capacity of 200 million barrels mark a significant development in global oil storage. In Asia Pacific, countries like India are filling strategic petroleum reserves, while China is set to expand its commercial crude storage capacity significantly.

In North America, the US has experienced a rise in oil stocks, leading to rapid filling of crude storage facilities. In Europe, the NWE Oil Storage region encompasses over 200 commercial terminals with a total capacity of around 58 million cubic meters.

Key Players in the Global Oil Storage Market

Leading players in the oil storage market include China Petrochemical Corporation, Sinopec, Royal Vopak NV, CNPC, Vitol Tank Terminals, Oiltanking Gmbh, Kinder Morgan, PetroChina, Buckeye, Marathon, Enterprise Products Partners L.P., and Magellan Midstream Partners, L.P.

As the global economy recovers and demand for crude oil rises, the oil storage market is set for notable growth. However, escalating investments in renewable energy sources, such as solar and wind, could present challenges to rapid market expansion.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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This press release first seen on Brilad