North America Oil Storage Market - By Product (Fixed Roof, Floating Roof, Spherical), By End Use (Crude Oil, Gasoline, Aviation Fuel, Middle Distillates, LNG, LPG) & Forecast, 2024 - 2032

North America Oil Storage Market Size

North America Oil Storage Market size may expect volume consumption to surpass 200.8 million Cubic Meter up to 2032, driven by fluctuating oil prices and supply volatility. Global oil storage market is predicted to surpass USD 1144 million cubic meters in 2030. The U.S. oil storage market acts as a major component of the country's energy infrastructure, as it allows for the strategic storage of oil reserves for use in times of supply disruptions or other emergencies.
 

Increased use of technology to optimize storage capacity and reduce costs is one of the major trends that has emerged in the North America oil storage market. This includes the use of digital sensors and analytics to monitor oil levels and the condition of storage tanks, as well as the implementation of automation and robotics to improve efficiency. In addition, shifting trends towards more environmentally sustainable practices is another prime factor influencing the market growth in the region. This includes the use of renewable energy sources to power storage facilities, the implementation of stricter regulations on emissions and waste management, and the adoption of new technologies to reduce the environmental impact of oil storage and transportation.
 

The North America oil storage market has witnessed a continuous growth and has made inroads into new end use areas. Over the past decade demand for the various refined product has register significant upsurge along with rising concern to reduce product losses. This in turn have led the industrial players to look for better and cost-effective technologies which possess low O&M cost, and longer lifespan. As a result, innovative and technically advanced oil storage facilities on account of their high efficiency, and corrosion resistivity, are gaining wide acceptance across the downstream sector.
 

The oil storage demand across the North America is primarily driven by the U.S., Canada, and Mexico. In 2022, the U.S. had contributed over 85% of the North America oil storage market share. Ongoing investment toward exploration and production of unconventional resources including shale gas has increased the oil inventory level across the nation. The increase in concentration of oil inventory have upsurge the demand for oil storage facilities. However, the manufacturing of oil storage tanks occupies high costs associated with the installation and deployment. The extensive expansion into the renewable fuel sector might curtail the capacity additions across the industry.
 

Moreover, the rapidly declining renewable energy prices, have led to more economical prices of it than the fossil fuels are some of the key factors that may create obstructions to the oil capacity additions and further hinder the North America oil storage market progress.
 

COVID- 19 Impact

The oil exporting countries were hard hit by the consequences of pandemic due to decrease in oil demand, thereby affecting the oil trade across the globe. In addition, with the benchmark price for the U.S. crude oil, and west intermediate falling negative in April 2020, resulted in the oil market collapse. Furthermore, due to strict lockdown and labor shortage, the economy witnessed halt of maintenance activities at storage terminals. However, in terms of oil storage, the country become active in filling their national stockpiles owing to low crude oil prices, thereby contributing to the market growth.
 

North America Oil Storage Market Trends

The U.S. oil storage market has undergone significant changes in recent years due to a wide number of factors, including the rise of domestic shale oil production, changes in global oil prices, and shifts in U.S. energy policy. In particular, the boom in shale oil production has led to a significant increase in the demand for storage facilities, as producers seek to store excess oil and petroleum products until market conditions improve.
 

Abundant availability of the O&G reserves, rising demand for shale gas and growing focus toward development of technically advanced rigs are some of the factors which has substantially attracted the investments across the upstream sector. As reported by Baker Hughes, in September 2022, the U.S. had 765 active drilling rigs, which got increased from 521 in September 2021, catering more oil production in the given time period. The increased in production rate will drive the North America oil storage market.
 

Continuous & exponential increase in the refinery production along with key industry players initiatives to further expand their business scenario is anticipated to proliferating the need for more storage spaces with high-safety index. Royal Vopak expanded its business operation by setting up a new industrial terminal in the U.S. gulf coast. The new terminal constructed by the company is said to store chemicals and petroleum products offered through a plastic manufacturing facility in San Patricio County, Texas, operated by a joint venture between ExxonMobil & SABIC. The new terminal having 144,000 cubic meter capacity is 100% owned & operated by VOPAK. Increasing energy needs along with high demand for petrochemical products is set to augment the North America oil storage market growth.
 

North America Oil Storage Market Analysis

Floating roof tank holds the majority share of the oil storage market owing to its ability to minimize evaporation loss to 80% by trapping the vapor from low flash point products over other alternates. Floating roof tanks are economical to construct and are preferred with the minimum acceptable equipment for storing liquid. In addition, availability of a wide array of floating decks as per requirement or factors including full liquid contact, load-carrying capacity, roof stability, or pontoon arrangement further widen the scope for the buyer to choose the floating type of tank for oil and related product storage. The floating tank is suitable to store large quantity of low and medium flash point products. Growing measures to minimize the adverse environmental impact along with escalating demand for volatile hydrocarbon will boost the North America oil storage market development.
 

Spherical tank, in 2021, accounted for 11.8% of global commercial oil storage market share. It is used to store highly pressured or extremely low flash point fluid including oxygen, hydrocarbon, LPG and hexane. The even distribution of stresses on the sphere's surfaces, both internally and externally does not create any weak point during the product in operation, making it stronger than its counter parts. In addition, the product is made with less pieces of material that has fewer welded connection joints, that increases their strength. Rising concern to prevent the risk of fire owing to unpredictable leakage of highly flammable products will positively influence North America oil storage market trends.
 

The crude oil commercial storage facility is predicted to showcase significant growth owing to ongoing investments toward oil and gas projects along with steady petroleum distillates demand. The increased level of oil inventory has adversely impacted the crude oil prices. Hence, to gain the benefits of the situation i.e., storing large quantity of crude oil at low crude oil prices, numerous storage facilities have been developed by both public and private players.
 

The increased in global energy consumption has raised the demand for middle distillates product. Therefore, to cater the demand of refined product several downstream companies are developing various storage facilities specific to the manufacturing sector. The increased in capital inflow toward the construction of additional storage facility will provide growth to oil storage market. However, in the coming future the growing demand for electronic vehicles might affect the demand elasticity of middle distillates.
 

The exponential & continual exploration and production activities of conventional & unconventional energy sources across the North American countries including the U.S. and Canada has created an oil glut and significantly uplift the demand for oil storage. U.S. being the highest collector in terms of strategic reserves across the globe has immensely contributed to the overall North America oil storage market.
 

The oil storage market in Canada has been influenced by a wide array of factors, including changes in oil production levels, fluctuations in oil prices, and regulatory changes. One of the key trends in recent years has been the expansion of oil storage capacity in Western Canada, particularly in Alberta, in response to growing production levels from the oil sands. This has led to a surplus of oil storage capacity in the region, which has put downward pressure on storage prices, thus impacting the business landscape.
 

The Mexico oil storage industry is estimated to observe a significant growth in 2032 owing to the growing population and expanding economy have led to an increase in demand for petroleum products, including gasoline, diesel, and jet fuel. In addition, accelerating private investments across the nation’s oil and gas sector, along with recent developments in the O&G industry, including commencement of new refinery projects, increasing condensate production, and offshore oil discoveries will positively influence the business dynamics.
 

North America Oil Storage Market Share

The companies in the North America oil storage market operates storage facilities and pipelines across the country, providing key infrastructure for the transportation and storage of oil and petroleum products. Leading market players across the North America include:

• CST Industries
• NOV Inc
• Magellan Midstream Partners, L.P
• Royal Vopak
• Kinder Morgan
• Buckeye Partners, L.P
• Roth, ERGIL
• Plains All American Pipeline
• T BAILEY, IN
• Fisher Tank Company
• SHAWCOR
• LF Manufacturing
   

North America Oil Storage Industry News

• In August 2022, NOV announced the collaboration with American Bureau of Shipping (ABS), a provider of global classification services for the gas, offshore, and marine industries, for subsea storage solutions. The cooperation will offer the subsea technology for the safe storage of greater capacities of fluids including production chemicals, oils, condensates, Enhanced Oil Recovery (EOR) chemicals, and maritime fuels. The collaborative development project is working to enable a cost-effective subsea storage solution. The association of companies working on this project include The Net Zero Technology Centre, ABS, NOV, Equinor, The Research Council of Norway, and Shell.
   
• In January 2022, Pemex, the state-owned oil company of Mexico, acquired ownership of the Deer Park refinery located in Houston for $596 million. Furthermore, the construction of a new refinery, Olmeca Dos Bocas was completed, and it is expected to commence operations in 2023. The construction of Olmeca Dos Bocas was estimated to cost around $12 billion. Additionally, new coker units will be installed in the Tula and Salina Cruz refineries, and they are scheduled to become operational towards the end of 2023.
   

This North America oil storage market research report includes in-depth coverage of the industry with estimates & forecast in terms ‘Million Cubic meter’ from 2019 to 2032, for the following segments:

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By Product

• Fixed roof
• Floating roof
• Spherical
• Others

By End Use

• Crude Oil
• Gasoline
• Aviation Fuel
• Middle Distillates
• LNG
• LPG

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico