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The Crude Transportation Market involves the transportation of crude oil from production sites and export terminals to refineries and other storage facilities. Crude oil is transported through tankers, pipeline, railroad tank cars and oil tank trucks to cover long and short distances. Crude oil transportation helps in providing a link between supply sources and refineries by overcoming geographical and logistic barriers. Pipelines remain the most used mode for crude oil transportation with lower costs and less emissions compared to other modes.
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 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. Crude transportation companies are focusing on large infrastructure projects and expanding transmission capacities to cope with rising demand. The growing demand for crude oil from emerging economies of Asia Pacific and Latin America is driving the need for transportation of crude through large tankers, pipelines and railroads. Major companies are expanding their global footprint and presence through strategic partnerships and acquisitions to leverage growth opportunities.
Market key trends
One of the major trends in the crude transportation market is the expansion of pipeline networks. Countries are investing heavily in new crude oil pipeline projects to develop export infrastructure as well as link remote production areas to major demand centers. For instance, the expansion of the East-West pipeline in China and construction of the Russian Druzhba-Adria pipeline are aimed at facilitating crude exports from these regions. Sustainable fuel adoption is also prompting investments in blended fuel pipelines to allow for increased shares of renewable fuels in the future. Companies are increasingly undertaking project to expand pipeline capacity, eliminate bottlenecks and develop alternative route options for reliable crude supplies.
Porter’s Analysis
Threat of new entrants: Establishing infrastructure for transportation of crude oil requires high capital investment and long lead time. Strict regulations also limit the entry of new players.
Bargaining power of buyers: Crude oil transportation is dominated by a few major oil companies who negotiate contracts and rates with pipeline operators. Buyers have moderate bargaining power since alternatives are limited.
Bargaining power of suppliers: A few major oil producers supply crude to pipeline companies who have limited options for alternatives. This gives suppliers significant bargaining power over pricing and contracts.
Threat of new substitutes: There are no viable large-scale alternatives to pipelines for transportation of crude over long distances currently.
Competitive rivalry: The crude oil transportation industry is highly consolidated with a few major players operating extensive pipeline networks. Competition is intense between operators.
Geographical Regions
North America accounts for the largest share of the global crude oil transportation market currently, led by the US. An extensive pipeline network and capacity additions are driving the region’s value.
The Crude Transportation Market Asia Pacific region is expected to witness the fastest growth during the forecast period due to rising crude imports in China and India. Capacity expansions of pipeline infrastructure and construction of new cross-country lines will support the growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
