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North America Oil Storage Market Trends

Report ID: GMI5716
Published Date: May 2023
Report Format: PDF

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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.

Authors: Ankit Gupta, Shashank Sisodia

Frequently Asked Questions (FAQ) :

The market for oil storage in North America exceeded 162.2 million cubic meter during 2023 and is anticipated to register more than 2.4% CAGR through 2032, owing to factors such as supply volatility and fluctuating oil rates.

Floating roof tanks hold a leading share of North America oil storage industry due to the products ability to minimize evaporation loss by 80%, and other benefits such as being economical to construct and needing minimum acceptable equipment to store liquid.

Canada oil storage industry value will grow over the coming years due to factors such as fluctuations in oil prices, regulatory updates, and changes in production levels of crude oil.

Major players in the North America oil storage market include Fisher Tank Company, Magellan Midstream Partners, L.P., NOV Inc., Plains All American Pipeline, LF Manufacturing, and Royal Vopak, among some others.