The global conventional oil market is anticipated to reach $4,690.2 billion by 2031, growing from $2,494 billion in 2021 at a CAGR of 6.4% from 2022 to 2031.
Conventional oil is preferred for older engines since synthetic oil has the potential to break down and cause oil valves to leak. Several manufacturers advise using conventional oil as synthetic oil is frequently used only in high-end vehicles and trucks. Automakers often utilize conventional oil while manufacturing their own brand of vehicles. These factors are projected to drive the conventional oil market share in the future.
Conventional oil protects the engine well, but it does contain harmful pollutants. Conventional oil is made by refining it to provide crude oil with the properties needed for lubricating an engine. Conventional oil contains some intrinsic irregularity in its molecular structure, nevertheless, as it is produced through a natural process. These impurities could increase friction and hasten the oil's decomposition. On the other hand, fully synthetic oil with a more regular molecular structure is used to manufacture synthetic oil. Synthetic oil will last longer and function better in challenging settings as a result. All of these issues are anticipated to hinder the market demand for conventional oil during the forecast years.
The development of advanced conventional oil-based engine oil has been prompted by the rise in and application of cutting-edge technology on the global market. The increase in the use of cutting-edge fuel and lubricant technology is helping in the creation of improved engine oil for automotive applications. These continuous advancements are expected to fuel market expansion during the forecast period.
COVID-19 had a negative influence on the automobile engine oil market due to the severe lockdowns and social distancing norms implemented to contain the virus's spread. Economic instability, a partial corporate shutdown, and poor consumer confidence all hampered demand for vehicle engine oil. During the pandemic, the supply chain was affected due to delays in logistics activities. The world economy and oil markets are recouping from the historic drop in demand induced by the COVID-19 pandemic. The massive inventory surplus that accumulated in the year 2020 is being depleted, and global oil stockpiles, excluding strategic reserves, were returned to pre-pandemic levels in 2021. Nonetheless, there may be no return to a normal level for the oil market in the post-pandemic period.
The key players profiled in this report include BP, Chevron, Eni, ExxonMobil, Shell, Total, CNPC, Equinor, Petrobras, and Repsol.
Conventional oil is preferred for older engines since synthetic oil has the potential to break down and cause oil valves to leak. Several manufacturers advise using conventional oil as synthetic oil is frequently used only in high-end vehicles and trucks. Automakers often utilize conventional oil while manufacturing their own brand of vehicles. These factors are projected to drive the conventional oil market share in the future.
Conventional oil protects the engine well, but it does contain harmful pollutants. Conventional oil is made by refining it to provide crude oil with the properties needed for lubricating an engine. Conventional oil contains some intrinsic irregularity in its molecular structure, nevertheless, as it is produced through a natural process. These impurities could increase friction and hasten the oil's decomposition. On the other hand, fully synthetic oil with a more regular molecular structure is used to manufacture synthetic oil. Synthetic oil will last longer and function better in challenging settings as a result. All of these issues are anticipated to hinder the market demand for conventional oil during the forecast years.
The development of advanced conventional oil-based engine oil has been prompted by the rise in and application of cutting-edge technology on the global market. The increase in the use of cutting-edge fuel and lubricant technology is helping in the creation of improved engine oil for automotive applications. These continuous advancements are expected to fuel market expansion during the forecast period.
COVID-19 had a negative influence on the automobile engine oil market due to the severe lockdowns and social distancing norms implemented to contain the virus's spread. Economic instability, a partial corporate shutdown, and poor consumer confidence all hampered demand for vehicle engine oil. During the pandemic, the supply chain was affected due to delays in logistics activities. The world economy and oil markets are recouping from the historic drop in demand induced by the COVID-19 pandemic. The massive inventory surplus that accumulated in the year 2020 is being depleted, and global oil stockpiles, excluding strategic reserves, were returned to pre-pandemic levels in 2021. Nonetheless, there may be no return to a normal level for the oil market in the post-pandemic period.
The key players profiled in this report include BP, Chevron, Eni, ExxonMobil, Shell, Total, CNPC, Equinor, Petrobras, and Repsol.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the conventional oil market analysis from 2021 to 2031 to identify the prevailing conventional oil market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the conventional oil market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global conventional oil market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
- Light Distillate
- Middle Distillates
- Heavy Ends
- Others
By Sulphur Content
- Low Sulphur
- High Sulphur
By End-user Industry
- Automotive
- Chemical
- Power
- Industrial
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- Norway
- Turkey
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Indonesia
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- United Arab Emirates
- Algeria
- Rest of LAMEA
Key Market Players
- BP p.l.c.
- Chevron Corporation
- Eni
- Exxon Mobil Corporation
- Shell Plc.
- TotalEnergies SE
- CNPC
- EQUINOR ASA
- PETROBRAS
- Repsol
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CONVENTIONAL OIL MARKET, BY TYPE
CHAPTER 5: CONVENTIONAL OIL MARKET, BY SULPHUR CONTENT
CHAPTER 6: CONVENTIONAL OIL MARKET, BY END-USER INDUSTRY
CHAPTER 7: CONVENTIONAL OIL MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report titled, “Conventional Oil Market," the conventional oil market was valued at $2.5 trillion in 2021, and is estimated to reach $4690.2 billion by 2031, growing at a CAGR of 6.4% from 2022 to 2031.Conventional oil is an organic material that naturally formed within the Earth's crust and is also referred to as crude oil or petroleum. It is a hydrocarbon, which means that its main ingredients are hydrogen and carbon with traces of other substances including nitrogen, sulfur, and different metals. Conventional oil is distinct from oil extracted from oil sands through drilling and pumping.
The cost-effectiveness of conventional oil, which requires relatively minimal processing prior to refining, is expected to propel market expansion. For older engines, conventional oil is preferable since synthetic oil has the potential to break down and cause oil valves to leak. Because synthetic oil is frequently used only in high-end vehicles and trucks, many auto manufacturers recommend utilising traditional oil. When manufacturing their brand of automobiles, automakers often use conventional oil in their plants. These factors are anticipated to drive conventional oil market share in the future years.
Key factors driving the growth of the conventional oil market are an increase in the usage of modern technology, which is resulting in the creation of advanced engine oil. The increase in the use of modern fuel and lubricant technology aids in the creation of superior engine oil for automotive applications. Such continuous innovations are projected to drive the conventional oil market expansion during the forecast period. The leading suppliers in the market are continually investing in enhancing conventional oil-based engine oil performance, for example, by utilizing cutting-edge antioxidants, surfactants, high-pressure agents, and improved corrosion inhibitors. The global conventional oil market is seeing an increase in the usage of sophisticated bonding technology, which involves the use of high-pressure lubricants created through the chemical treatment of hydrocarbons. Such modern lubricants can withstand high temperatures and pressure owing to their long-chain molecular structure and higher stability. They allow the engine oil to have high levels of anti-corrosion qualities in addition to resistance to high temperatures and pressure. Therefore, these factors are projected to boost the conventional oil market expansion during the forecast period.
Advances in good drilling and completion technologies have enabled the energy industry to access new supplies of oil and natural gas to fulfill rising global demand. New technologies have also helped to lessen the environmental impact of energy production by allowing more oil and gas to be produced with fewer wells. Technological advancements will be crucial in satisfying global energy demand as they enable the discovery of new resources, access to harsh or isolated places, and the development of challenging reservoirs that were previously uneconomic to produce. All these advancements in the conventional oil sector are projected to create growth opportunities for the key players operating in the market in the upcoming years.
The conventional oil market is segmented into type, sulfur content, end-user industry, and region. On the basis of type, the market is classified into light distillate, middle distillates, heavy ends, and others. On the basis of sulfur content, it is classified into low sulfur and high sulfur. On the basis of end-user industry, it is classified into automotive, chemical, power, industrial, and others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, Italy, France, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, United Arab Emirates, South Africa, and rest of LAMEA).
The key players profiled in the study include BP, Chevron, Eni, ExxonMobil, Shell, Total, CNPC, Equinor, Petrobras, and Repsol. The major players in the market have been actively engaged in the adoption of various strategies such as acquisition, product launch, and expansion to remain competitive and gain an advantage over the competitors in the market. For instance, in January 2023, UK-based oil giant BP intends to raise investments in its Texas and Gulf of Mexico oil and gas production assets. The decision comes in response to the U.S. government's plea to energy corporations to expand oil supplies in order to lower fuel prices as inflation expenses hit the industry.
Key Market Insights
- By type, the middle distillates segment was the highest revenue contributor to the market in 2021. However, the light distillate segment is estimated to be the fastest-growing during the forecast period.
- By sulfur content, the high sulfur segment dominated the market share in 2021. However, the low sulfur segment is estimated to be the fastest growing during the forecast period.
- Based on the end-user industry, the automotive segment was the highest revenue contributor to the market in 2021. However, the power segment is projected to be the fastest growing during the forecast period.
- Based on region, the LAMEA region accounted for the fastest market share in 2021 and is projected to maintain its position during the forecast period
Companies Mentioned
- BP p.l.c.
- Chevron Corporation
- Eni
- Exxon Mobil Corporation
- Shell Plc.
- TotalEnergies SE
- CNPC
- EQUINOR ASA
- PETROBRAS
- Repsol
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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