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| Global Crude Transportation Market |
The Crude Transportation Market is estimated to be valued at US$ 21.58 Bn in 2023 and is expected to
exhibit a CAGR of 6.0% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
The crude transportation market refers to the transportation of unrefined crude
oil from oil extraction production fields to refineries, terminals, or other
locations. It involves using various modes such as pipeline, rail, road, and
ship transportation. Key players are largely involved in developing pipeline
infrastructure for transporting crude oil as it is the safest and most
economical option compared to other means.
Market Dynamics:
A key driver for the crude transportation market is the rising energy demand
globally. With depleting reserves of conventional oil and gas, production is
shifting towards unconventional reserves from tight oil & gas basins which
require long-distance transportation using pipelines and railways. According to
the International Energy Agency, global energy demand is expected to rise by
around 25% by 2040. This rising demand will augment the need for crude
transportation infrastructure including pipelines to cater to the production.
Another driver is the increasing offshore production of crude oil. Extraction
of crude oil from offshore reserves requires transportation to onshore
locations through undersea pipelines or shuttle tankers. Countries are making
heavy investments in developing offshore exploration and production capacities,
consequently propelling the crude transportation infrastructure demand.
Segment Analysis
The Global
Crude Transportation Market can be segmented by Mode into Pipeline,
Tankers (Oil Tankers and LNG Tankers), and Railroads. The pipeline segment is
dominating the market currently due to lower transportation costs compared to
other modes of transportation. According to recent industry reports, the
pipeline transportation segment accounted for over 60% of the global crude oil
transportation in 2022 primarily because of the cost-effectiveness of pipeline
infrastructure for long distance bulk transportation of unrefined crude oil.
PEST Analysis
Political: Favorable government policies supporting infrastructure development
of crude oil pipelines and ports handling oil tankers transport are boosting
the market growth. However, stringent environmental regulations pose a
challenge.
Economic: Rising energy demand and global crude oil trade has increased the
need for cost-efficient transportation of crude oil, positively impacting the
market.
Social: Growing awareness about environmental protection has increased the
preference for transportation modes like pipelines and ultra-large crude
carriers that are relatively more eco-friendly.
Technological: Adoption of digital technologies like IoT and automation
solutions in pipeline monitoring and tanker fleet management has improved
efficiency while reducing costs and risks.
Key Takeaways
The global Crude Transportation Market is expected to witness high growth,
exhibiting CAGR of 6.0% over the
forecast period 2023 to 2030, due to increasing global trade of crude oil and
need for reliable and efficient transportation infrastructure. The market size
is estimated to reach US$ 38.77 Bn by 2030 from US$ 21.58 Bn in 2023.
North America currently dominates the global market due to extensive network of
pipelines and increased shale oil production making USA the largest crude oil
producer. Canada and Mexico are other major contributors to the North American
crude transportation market.
Key players operating in the crude transportation market are ExxonMobil
Corporation, Royal Dutch Shell, Chevron Corporation, BP plc, TotalEnergies SE,
ConocoPhillips, China National Petroleum Corporation, Saudi Aramco, Rosneft Oil
Company, Valero Energy Corporation, Phillips 66, Marathon Petroleum
Corporation, PetroChina Company Limited, Kinder Morgan Inc., Enbridge Inc.
These players are focusing on capacity expansion and investments in large
diameter pipelines and very large crude carriers (VLCCs).
Read More: https://www.ukwebwire.com/crude-transportation-market-analysis/