Oil Storage Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user and Region

The global oil storage market is experiencing a surge in demand for storage facilities as declining crude prices and a glut in supply have led sellers to pay buyers to accept immediate deliveries. The COVID-19 pandemic has created unexpected opportunities for stakeholders in the oil storage market, as the majority of existing storage options are already occupied. This trend has prompted oil and gas (O&G) majors to invest in oil storage facilities to accommodate the surplus supply and save on storage costs.

Fixed Tanks Minimize Evaporation Loss and Dominate the Oil Storage Market

Oil storage tanks play a crucial role in storing vapors, organic and non-organic liquids across various industries. Fixed roof storage tanks, designed and built in accordance with the American Petroleum Institute API-650 guidelines, are the preferred choice for storing large volumes of petrochemicals. These tanks feature a cylindrical steel shell with a dome-shaped roof permanently attached to minimize evaporation and corrosion loss. It is anticipated that fixed oil storage tanks will continue to lead the oil storage market in the foreseeable future.

Capacity Expansions Underway to Address COVID-19 Oil Supply Gluts

Key players in the global oil storage market include China Petrochemical Corporation, Sinopec, Royal Vopak NV, and CNPC. In April 2020, Royal Vopak NV announced that it had run out of oil storage facilities due to the COVID-19 oil glut. The company operates three hubs in Fujairah, Rotterdam, and Singapore. Similarly, Sinopec completed the construction of an 800,000 cubic meter oil storage unit in China's Luoyang city and aims to double its storage capacity by June 2021. Other active companies in the oil storage market include Vitol Tank Terminals, Oiltanking GmbH, Kinder Morgan, PetroChina, Buckeye, Marathon, Enterprise Products Partners L.P., and Magellan Midstream Partners.

Diversification of Investments Recommended as No Region Dominates the Market

The Middle East and Africa (MEA) region is expected to witness significant growth in the oil storage market due to explosive demand and investments in improving supply stocks. Oman, for instance, has unveiled plans to build the world's largest oil storage facility for crude traders and producers. In the Asia Pacific (APAC) region, India aims to fill its strategic petroleum reserve (SPR) and has signed an MoU with the US for crude cooperation, including the potential storage of oil in American emergency stockpiles. In Europe, the NWE Oil Storage network includes multiple oil storage locations across Denmark, Norway, Germany, France, Ireland, Benelux, and the UK. The NWE region alone houses more than 200 commercial terminals.