The market expects to see a compound annual growth rate (CAGR) of 1.4% through 2023, when it could be worth $661.3bn, according to the report 'Oil Storage: Global Markets Through 2023'.
Major players in the market include Containment Solutions, Synalloy, British Petroleum, ExxonMobil, Royal Dutch Shell, and ConocoPhillips.
Commercial storage leads the market by size, with a 2018 value of $536.4bn, followed by strategic and emergency reserves at $80.8bn.
By stock type, floating storage will see a market decline of 0.3% though 2023; end-use and seaborne taker will also see growth of less than 1%.
OECD nations dominate the market by size, with a 2018 value of 2.7bn barrels, followed by non-OECD at 617mn barrels.
“China’s slumping purchases of American crude, and its extra buying from elsewhere, after August 2018 have also coincided with a trade war between the US and China,” notes report author Edward Gobina.
“Likewise, re-imposed full economic sanctions on Iran aimed at targeting its oil and banking sectors on 5 November 2018 have increased the need for the type of heavy, sour crude that the Persian Gulf state sells. Combining the impact of US re-imposed sanctions on Iran and the US trade war with China, shows that it is America’s foreign policy which is reshaping oil flows with the result that global oil flows are being redirected/rerouted. The US is therefore becoming a global energy power.”
Though fossil fuels, led primarily by oil, will remain the global energy leader through 2023, the growth of the renewables market will impact market share. Fossil fuels accounted for 83% of the industry in 2023, the report notes, but that figure had already fallen to 81% by 2018 and was forecast to fall further to 75% by 2023. Meanwhile, renewables grew from 5% of the market in 2017 to 7% in 2018 and were forecast to expand to 11% by 2023. While hydroelectric’s share of the market was forecast to remain steady at 7% through 2023, nuclear was expect to grow from 5% to 7%.
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