May 21, 2024
Ict

Crude Transportation Market Estimated to Register Robust Growth Owing to Increasing Demand for Energy

The crude transportation market has witnessed significant growth over the past few decades. Crude oil is transported from production facilities to refineries via pipelines, tankers, rail tank cars and oil tank trucks. Pipelines remain the most cost-effective mode for long-distance bulk transportation. Tankers are primarily used for ocean-going shipments between countries, while rail tank cars and trucks are suitable for shorter-distance land transportation.

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. Key opportunities in the market include pipeline expansion projects to cope with rising crude oil production and demand for cleaner marine fuels.

The crude transportation market is witnessing strong growth in Asia Pacific driven by rising energy needs of China and India. Countries in the Middle East such as Saudi Arabia are investing heavily in port infrastructure to boost seaborne crude exports. Pipeline networks in North America are also being enhanced to efficiently transport production from shale plays to coastal terminals.

Market drivers

Growing global energy consumption is one of the key drivers for the crude transportation market. According to the International Energy Agency, worldwide energy demand is projected to rise by close to 50% by 2050. This will necessitate infrastructure expansions to transport crude oil from producing regions to economically vibrant consumption centers. Increasing production of unconventional oil reserves like shale oil also requires transportation solutions to reach end-use markets.

PEST Analysis
Political: The crude transportation market is impacted by government policies and regulations related to transportation of crude oil via pipelines, railways and ships. Changes in environmental laws can affect expansion of pipeline networks.

Economic: Global economic growth influences demand for crude oil which in turn impacts volumes transported. Transportation costs are also dependent on price fluctuations in the energy market.

Social: Safety and environmental concerns around crude oil transportation needs to addressed to gain approval from local communities for expansion of infrastructure. Pipeline networks face resistance from environment groups.

Technological: Adoption of digital technologies help optimize logistics and monitor pipeline infrastructure in real-time. Advancements in ship design aids operation of very large crude carriers (VLCCs) ensuring maximum efficiency. Introducing renewable fuel blending at terminals reduces emissions.

Geographical regions with high market concentration
North America accounts for over 40% of the global crude transportation market value owing to extensive pipeline networks in the US and Canada transporting crude from shale basins to refineries. The region is a net exporter of petroleum products. In Asia Pacific, countries like China, India and Japan rely majorly on seaborne transportation of Middle East crude via routes like the Strait of Hormuz and Malacca Strait.

Fastest growing regional market
The crude transportation market in Asia Pacific region is expected to exhibit strongest growth over the forecast period led by rising energy demands of China and India. Capacity expansion of ports and construction of new pipelines catering to growing refining hubs in countries like Indonesia and Vietnam will drive the regional market. Strong economic outlook for Asia Pacific nations is a key growth determinant for crude transportation infrastructure.

*Note:

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