June 22, 2024
Ict

Crude Oil Transportation Market is in trends by increasing cross-border trade

Crude oil transportation involves the storage and movement of crude oil from production sites to refineries through a system of pipelines, rail tank cars, trucks, barges, ships and oil tankers. Crude oil is an important commodity used as feedstock in various industries like petrochemicals, power and refineries which further process it to produce useful products like petrol, diesel and other petrochemicals. The transportation of unrefined crude oil helps in ensuring a smooth supply of this essential raw material to refineries located near consumption centers.

The Global Crude Transportation Market is estimated to be valued at US$ 21.58 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the Crude Transportation 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 players are focusing on strategic partnerships and expansion of transportation infrastructure to cater to the growing demand for crude oil.

The growing demand for petroleum products and feedstock across the globe is driving the need for transportation of crude oil from production sites to refineries. The consumption of petroleum-based products is increasing consistently with the economic growth and rising standards of living. This growing demand for refined petroleum products is necessitating higher trade volumes of crude oil between producer and consumer economies.

The expansion of crude oil trade between countries is boosting the global crude transportation market. Many new cross-border pipelines are being developed as overweight is shifting from west to east. Countries are making efforts towards infrastructure development and strategic partnerships to facilitate easy cross-border movement of crude. New trade agreements for import/export of crude between regions is pushing the need for modernization of global crude transportation infrastructure.

Market key trends
Rising seaborne trade of crude oil is one of the key trends in the global crude transportation market. According to estimates, seaborne trade accounts for about two-third of the global crude oil trade. The share of seaborne transportation is increasing with growing long-haul trade between regions like Middle East, North America, Asia Pacific etc. Growing tanker fleet capacity and rising supertanker fleet are accelerating the seaborne trade of crude worldwide.

Porter’s Analysis
Threat of new entrants: Low barriers to entry due to moderate capital requirements but established players hold majority market share.
Bargaining power of buyers: High bargaining power due to availability of alternative transportation options and large volume purchase contracts.
Bargaining power of suppliers: Low bargaining power for suppliers as the number of crude producers is large but buyers consolidate purchasing power.
Threat of new substitutes: Moderate threat from alternate energy sources but crude transportation infrastructure reduces potential for substitution in short term.
Competitive rivalry: Intense competition on pricing and contract terms between integrated oil majors.

Geographical Regions
The North America region accounts for the largest share of the global crude transportation market in terms of value due to high production volumes from Canadian oil sands and US shale plays. An extensive pipeline network connects crude sources to refineries within the region as well as facilities along the Gulf coast for export.

The Asia Pacific region is projected to experience the fastest growth in the crude transportation market during the forecast period. Rising energy needs of developing economies such as China and India have increased crude oil imports manifolds. Several planned and ongoing pipeline projects aim to boost regional infrastructure for efficient movement of crude within Asia and from the Middle East and Africa. Countries like India have emerged as key destination markets for Mideastern and African crude.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it