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February 9, New York, USA, 2021 – According to the International Energy Agency (IEA), the global oil supply rose from 0.2 million barrels per day to 91.2 million barrels per day in October 2020. The rising compliance to agreements with OPEC countries, and US recovery from hurricanes, and increased production in Libya have led to rising demand for increased oil logistics. Moreover, due to Covid-19, the IEA predicts increased uncertainty in supply chains, as key regions like Europe, and the US witnessed a major fall in demand in 2020. The demand for oil was estimated to decrease by 5.8 million barrels per day in 2020, and recover by 5.5 million barrels per day in 2021. Despite the promise of vaccination, the new strain of viruses continues to destabilize industrial sectors to drive uncertainty in the global oil industry. This will likely provide a major advantage to manufacturers with additional storage, and cost-effective transportation services. The rising recovery of the oil industry due to vaccination programs, the growing uncertainty in supply chains, and increasing supply due to stabilization will drive major growth for the oil & gas storage and transportation market.
The rising demand for storage remained a major driver for the market in 2019, and the market size stood at 1682 million cubic meters in storage space. Hence, the global oil & gas storage and transportation market to grow at 5.7% during 2020-2027.
Rising Demand for Carbon Capture to Drive Robust Growth for the Oil & Gas Logistics Market
According to the International Energy Agency (IEA), the investment in carbon capture technology or CCUs continues to rise globally. The agency estimates that at least 30 new projects were announced since 2017. Moreover, vast projects are planned in China, Australia, Korea, United States, EU, among other nations. These projects will likely increase the capacity of carbon capture programs by 130 Mt per year by 2030, tripling the current capacity. The carbon capture rate remains highly efficient today, at nearly 90%. Moreover, large amounts of CO2 are emitted during electricity generation from coal, biomass, and natural gas. Moreover, the CO2 requires mass transporting to storage locations from power stations. Furthermore, the CO2 is stored usually deep underground, and isolated. The growing promise of zero carbon emissions, the rising demand for CCUs globally, and rising energy demand from conventional sources like coal in key countries like China will drive major growth for the global oil & gas storage, and transportation market.
The goal to keep emissions to zero is a global initiative, and highly essential to tackle global warming. Moreover, according to IEA’s recent technical report, advancements in technology have resulted in improvements in the conventional 90% rate. Today, the IEA estimates that that advanced technologies pose no barriers to higher efficiency, and despite the tremendous advancements, the costs to capture carbon remains modest. Furthermore, the IEA reports that there are many advanced plants in operation aiming to capture carbon higher than conventional 90% efficiency. The rising advancements in technology, a global goal to achieve zero-emissions, and modest cost increase will drive major growth for the global oil & gas storage and transportation market.
Rising Stock Levels for Crude Products to Drive Tremendous Growth
According to the US department of energy, there were 252.2 million crude oil barrels in United States on the 29th of January, in 2021. Moreover, while this was lower than in December 2020 (261.1 million barrels), the level of stocks remains high in the United States. Furthermore, increased advancements in technology, and growing demand for oil has forced the US to increase oil production within its borders. For example, in 2019, the Shale production across the US Eagle Ford region, to rise from 7,000 barrels per day to 1.43 million barrels per day. Similarly, the Shale production in the Bakken region in North Dakota was estimated to rise to 1.39 million barrels per day from 11,000 BPD. Rising production in the US and rising stocks due to covid-19 pandemic will drive major growth for the storage facilities in the United States in the 2020-2027 period.
Rising Demand for High-Pressured Pipelines to Drive Growth for Transport Services
Driven by rising demand for natural gas and oil, the capital spending in oil & gas downstream, and midstream infrastructure between 2010, and 2013, increased by 60%. The increase amounted to over $33.3 billion. Furthermore, despite tremendous increases in infrastructure, the infrastructure still lags behind in North America to cater to growing demands. In July 2013, the derailment of a crude oil train in Lac-Megantic, Quebec resulted in 47 fatalities, and major destruction for the downtown area. The rising supply of flammable hazardous material has created an increased need for safety in rail transport in the global oil & gas storage and transportation market. The increased production of oil and gas in the United States has forced high-pressured transportation over long-distance pipelines, and increased activity in the processing facilities.
Moreover, the pipelines are experiencing many issues, as pipelines in rural areas do not meet Department of Transportation guidelines in rural areas. Furthermore, the current pipelines also fall short on emergency procedures as these are smaller, and operated at lower pressure. Furthermore, most states in the United States do not enforce state guidelines as strictly as necessary. This is likely to result in major infrastructural improvements as crude oil cargoes by rail increased by 24 times in 2012, as compared to loads in 2008. This has also created opportunities for players in the oil & gas logistics market with product identification, labeling, and packaging demands. The new move in the market for rails to provide a greater emergency response, and increased loads for high-pressure pipelines to drive major growth for the global oil & gas storage transportation market.
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