Oil Storage Industry Set to Reach USD 28.3 Billion by 2034
The global oil storage market is poised for significant growth in the coming years, with projections estimating a reach of USD 28.3 billion by 2034, up from USD 19.9 billion in 2024. This growth is driven by several key factors, including global supply volatility, energy security concerns, and supportive government policies, particularly in major oil-importing countries like India.
Market Segmentation
The global oil storage market can be segmented in several ways. By product, it likely includes crude oil storage tanks, refined products storage, and strategic petroleum reserves (SPR), with India's Strategic Petroleum Reserve Limited (ISPRL) serving as an example for SPR. The market's segmentation by material, capacity, application, and region was not explicitly detailed in the provided data.
Product Segmentation
In terms of product, the market is likely to include various types of storage tanks, such as crude oil storage, refined products storage, and strategic petroleum reserves. However, specific product categorizations were not detailed in the provided data.
Material Segmentation
Typical materials for oil storage tanks include steel (carbon and stainless) and concrete for underground tanks. While explicit segmentation by material was not listed in the search results, it is safe to assume that these materials form the backbone of the market.
Capacity Segmentation
Segmentation by capacity typically ranges from small-scale to large-scale storage facilities. For instance, India's ISPRL has a capacity of 5.33 million metric tonnes (MMT), highlighting large strategic reserves.
Application Segmentation
Applications for oil storage facilities include strategic petroleum reserves for energy security, commercial storage for supply chain buffering, and industrial uses in oil refining and distribution.
Regional Segmentation
The market's regional segmentation shows North America holding the largest share (34.8% in 2024), followed by Asia-Pacific (though exact figures were not provided due to India’s growing capacity). Other regions include Europe, Latin America, and Middle East & Africa.
Market Trends and Developments
North America's dominance in the global oil storage market in 2024 accounted for a 34.8% share and USD 6.9 billion in revenue. Key storage hubs in North America include Cushing, Oklahoma, and the Louisiana Offshore Oil Port.
In India, strategic reserves through ISPRL in three underground locations (Visakhapatnam, Mangaluru, Padur) holding 5.33 MMT capacity underscore the geopolitical push for storage to mitigate import risks. India, a major oil importer, relies on imports for over 80% of its crude oil needs.
The market is also seeing growth due to the expansion of oil & gas midstream infrastructure, including storage facilities and pipelines, supported by technological advances in pipeline and storage maintenance.
Companies like Vopak and VTTI are focusing on energy transition by expanding their LNG and hydrogen storage infrastructure. VTTI, a subsidiary of Vitol, has been expanding its global storage capacity, particularly in Asia and the Middle East.
Uses of Oil Storage Facilities
Oil storage facilities support refinery operations by ensuring a steady supply for processing and managing production fluctuations. They also play a crucial role in emergency supply management, providing backup oil during unexpected events like pipeline failures or hurricanes. Furthermore, companies use oil storage for price arbitrage, storing oil when prices are low to sell later at higher prices.
India plans to add 6.5 MMT of storage capacity in Chandikhol and Padur under a Public-Private Partnership (PPP) model. The 2025-26 Union Budget allocates INR 55.97 billion for oil purchases to fill strategic reserves. Additionally, INR 1.8 billion is designated for the operation and maintenance of SPRs, and INR 3.35 billion for land acquisition and construction of new storage caverns.
Advanced storage tanks, like floating roof designs, reduce evaporation and emissions to meet environmental regulations. These tanks held a 56.2% market share in 2024.
In conclusion, the global oil storage market growth to 2034 is underpinned by supply-demand balances, geopolitical energy security strategies, and continuous infrastructure investments across key regions, with North America currently dominating by revenue share. Detailed material and product segmentation beyond general categories were not explicitly provided in the search results.
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