North America Oil Storage Market Overview:
The North America oil storage market was valued at $667 million in 2016, and is projected to reach $931 million by 2023, growing at a CAGR of 4.8% from 2017 to 2023. In terms of volume, the market accounted for 54,154 thousand CBM in 2016, and is projected to reach 73,633 thousand CBM in 2023, registering a CAGR of 4.4% from 2017 to 2023. Oil storage is a trade where vertically integrated companies purchase oil for immediate delivery and store until the price of oil increases. Moreover, this storage can be for a short span of time as the oil could be transported for refinement process. The crude oil and natural gas are the naturally occurring petroleum resources, and are known as refinery feedstocks, which require appropriate storage. Petroleum products are transported to the storage facilities from oilfields and then to the refineries.
The growth of the North America oil storage market is majorly driven by reduction in crude oil prices. Other factors boosting the market growth include increase in need for mega refining hub, high degree of product containment, and rise in import facilities in North America. However, factors such as decline in production & exploration activities and rise in inventory cost restrain the market growth. Conversely, the development of the strategic petroleum reserves segment and increase in oil demand are expected to provide lucrative growth opportunities for the market.
The North America oil storage market is segmented on the basis of type, material, product design, and country. Based on product, the market is categorized into crude oil, gasoline, aviation fuel, naphtha, diesel, kerosene, and liquefied petroleum gas (LPG). Crude oil segment accounted for the largest market share in 2016, and is expected to continue this trend throughout the forecast period. On the other hand, gasoline segment is anticipated to grow at a significant CAGR of 6.2% during the forecast period.
By material, the market is classified into steel, carbon steel, and fiber-reinforced plastic (FRP). Depending on product design, it is fragmented into open top tanks, fixed roof tanks, floating roof tank, and other storage tanks. Fixed roof tanks segment accounted for the largest market share in 2016, whereas floating roof tanks segment is expected to register the highest growth rate during the forecast period.
Country wise, the market is studied across U.S., Canada, and Mexico. The U.S. market is further divided into five PADD regions, namely, PADD I, PADD II, PADD III, PADD IV, and PADD V. Canada is further fragmented into Atlantic region, Central Canada, the West Coast, and the North, where the West Coast is subsegmented into the Prairie Provinces and other western regions. U.S. held the largest share of the market in 2016, followed by Canada. On the other hand, Mexico is anticipated to dominate the market during the analysis period.