Global Oil and Gas Storage Service Market 2016-2020
About Oil and Gas Storage Service
Storage tank services are responsible for over 70% of the revenue in the market and include containers that hold liquids, compressed gases, or mediums used for short- or long-term storage. Typically, these tanks operate under no or very little pressure and can be spherical or cylindrical in shape. Based upon location and requirement, storage tanks come in varieties such as crude oil tankages, product and intermediate storage tankages, dispatch area tankages, and minitanks near production units of a refinery.
Technavio’s analysts forecast the global oil and gas storage service market to grow at a CAGR of 2.2% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global oil and gas storage service market for 2016-2020. To calculate the market size, the report presents the vendor landscape and a corresponding detailed profiling of the key market participants across the value chain of the market.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Oil and Gas Storage Service Market 2016-2020
Technavio recognizes the following companies as the key players in the global oil and gas storage service market: Royal Vopak, Oiltanking, Magellan Midstream Partners, Buckeye Partners, and Vitol.
Other prominent vendors in the market are: Blueknight Energy Partners, CIM-CCMP Group, CLH Group, Dailan Port Company, Horizon Terminals Limited, International-Matex Tank Terminals (IMTT), Kinder Morgan, NuStar Energy, and Odfjell.
Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is rise in deep water and ultra-deep water operations. With the conventional avenues of oil and gas reserves already seeing a certain end, the dependence of the global economy on fossil fuels is pushing the upstream oil and gas sector to the geographical ends of the globe. The most significant of these, which cements the aforementioned trend, is the increased reliance on deep water and ultra-deep water drilling and production operations. The frequency of these operations, marked by significantly hostile operating conditions, is only expected to increase manifold in the coming decade. This puts the significant question on the technological capabilities of the oil and gas storage industry to adapt and successfully operate in these conditions.”
According to the report, one of the primary drivers in the market is geographical diversification of crude oil markets. One of the most obvious outcomes of the present era of fossil fuel is that the era of easy oil is coming to an end. This has resulted not only in inflated costs of hydrocarbon acquisition but also displaced the operations geographically. Much of the past century was witness to drilling operations being carried out at established locations in the world. The major hydrocarbon rich regions around the globe were identified in the early 20th century, and most operations were based out of these areas for the next century or so. However, things have started to change significantly now, and exploration and production (E&P) companies have started to look at unconventional avenues for exploration.
Further, the report states that one major challenge in the market is high operational cost and strategic locations for oil terminals. With an increase in demand for value-added services (VAS) and specialized professional supply chain solutions in the oil and gas storage service market, the oil and gas industry is becoming highly competitive in terms of pricing of services. Vendors in the market are under sustained pressure from customers to keep prices low. While these providers have made profits from fixed-term long contracts with customers, volatility of fuel prices has decreased profitability. Customers are demanding lower rates while renewing contracts. Independent oil storage company's customers are demanding additional services at the same price; thus, companies are facing pressure in pricing their services.
Royal Vopak, Oiltanking, Magellan Midstream Partners, Buckeye Partners, Vitol, Blueknight Energy Partners, CIM-CCMP Group, CLH Group, Dailan Port Company, Horizon Terminals Limited, International-Matex Tank Terminals (IMTT), Kinder Morgan, NuStar Energy, Odfjell.