July 20, 2024
Crude Transportation market

The Crude Transportation Market is estimated to witness high growth owing to rising dependence on crude oil

The 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.

Crude oil is one of the most widely consumed commodity and is a key component in production of various petroleum products like gasoline, diesel, jet fuel etc. The growing demand for crude oil across the globe in various end use industries is expected to drive the demand for crude transportation globally over the forecast period.

Market Overview:

Crude oil transportation involves movement of unrefined petroleum from the production sites to refineries and storage terminals using various transportation modes such as pipelines, oil tankers, rail tank cars and oil tank trucks. Pipelines are considered as the most efficient method to transport crude oil in bulk over long distances. With rising oil trade globally, demand for safe and efficient crude transportation is increasing rapidly.

Market key trends:

Rising dependence on crude oil: According to International Energy Agency, the global demand for crude oil would continue to rise in coming years. Many developing nations in Asia are industrializing rapidly and their energy needs are growing exponentially, which is increasing global dependence on crude oil. The rising reliance on crude oil as primary energy source is thus expected to drive demand for its safe and efficient transportation globally.

Growing seaborne trade of crude oil: Significant amount of global crude oil trade happens through maritime shipping. Rising international trade of crude oil is increasing dependence on oil tankers for long distance seaborne transportation of crude. According to stats, total volume of crude oil carried through tankers increased from below 2 billion tonnes in 2010 to over 3 billion tonnes in 2019. The growing seaborne trade of crude oil is projected to boost demand for oil tankers and push growth of crude transportation market.

Porter’s Analysis

Threat of new entrants: The  Global Crude Transportation Market requires massive infrastructure and capital investments which act as significant entry barriers for new players.

Bargaining power of buyers: Large oil and gas companies possess strong bargaining power over crude transportation service providers due to their oligopolistic market structure and ability to opt for alternative modes of transportation.

Bargaining power of suppliers: Pipeline and tanker operators hold substantial bargaining power over crude producers and refiners due infrastructure assets with limited alternatives.

Threat of new substitutes: There exist few economical substitutes to pipelines and tankers for large-scale crude transportation over long distances.

Competitive rivalry: Intense competition exists between leading pipeline and tanker operators to capture market share and long-term shipping contracts from oil producers and refiners.

SWOT Analysis

Strength: Existence of extensive crude oil pipeline networks and large crude oil tankers fleet allows efficient large volume transportation.

Weakness: Vulnerable to geopolitical risks and disruptions due to reliance on transport routes passing through critical sea lanes and pipelines crossing foreign territories. Infrastructure assets entail high maintenance and capacity expansion capital.

Opportunity: Growing international crude trade driven by evolving production and consumption patterns across regions presents opportunities. Technological advances may reduce costs.

Threats: Stringent emission norms along with focus on cleaner energy transition poses risks to long-term demand outlook. Disruptions from accidents or natural disasters can impact operations and profitability.

Key Takeaways

The global Crude Transportation Market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing global crude oil trade volumes amid maturing fields in legacy production regions and ramp-up in new production basins.

Regionally, North America dominated the global market in 2023 attributed to extensive pipeline network connecting prolific shale oil plays to refining hubs. However, Asia Pacific is anticipated to register fastest growth through 2030 with expanding crude imports in China, India and other Asian countries to meet their burgeoning energy needs.

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., and Enbridge Inc. These companies are investing in enhancing their logistics and transportation systems to capture opportunities arising from the global energy transition.

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