The dynamics of the oil storage market have been disrupted since the beginning of 2016 when oil prices dramatically dropped, creating a record 12-year low. With supply outpacing demand for oil, investments in crude oil storage have seen a jump as the industry attempts to grapple with the unprecedented oil glut. This current shortage of storage capacity is stoking a greater interest in oil storage – the situation now compels industry players to store more oil than they are refining, processing, or selling. The cumulative impact of all of these factors has been a massive surge in demand for oil storage since early 2016.
Browse the full Global Oil Storage Market Report: http://www.mrrse.com/oil-storage-market
According to a new report featured on Market Research Reports Search Engine (MRRSE), global oil storage capacity stood at 1,337 million cubic meter two years ago in 2014 and is expected to soar to 2,027 million cubic meter by the end of 2024. This translates to a CAGR of 4.73%. These estimates have been published by market intelligence firm, Transparency Market Research.
As Oil Production Continues, Need for Value-added Storage Being Felt
Even as the oil industry, especially in the Middle East, recovers from the blow dealt to it by an oversupply of oil, the situation has been compounded by fluctuating oil prices. OPEC countries, for whom exports form their economy’s lifeblood, have maintained that the oil industry is reaching stability and many countries have agreed that a production cap will not be considered. Companies in the oil storage market are expected to reap the benefits of this continuing supply of oil in the face of a glut. The fluctuations in oil prices have also aided the expansion of the global oil storage market.
Oil storage solutions and infrastructure providers are endeavoring to make the most of this situation by offering an array of value-rich services that will look economically attractive even in a time of economic upheaval in the Middle East. Oil storage companies are, for example, adding logistics to their service basket to create additional value for their customers.
Demand for Oil Storage Expected to be High in Middle East and Africa (MEA)
Of the key geographical segments of the global oil storage market, the Middle East and Africa (MEA) is expected to remain the leader in terms of demand. The region is pegged to exhibit a 7.91% CAGR from 2016 to 2024, continuing to stay in the leading position all through 2024, the projections of TMR state. The oil storage market will particularly thrive in the UAE, Nigeria, Saudi Arabia, Oman, Iran, and Qatar.
North America is expected to generate appreciable demand for oil storage as well. The region, in 2015, made up nearly 24% of the global oil storage market. As shale gas and crude oil production surges in the region, a pressing need for additional oil storage capacity is being felt. In the short term, efficient and well-planned storage is being regarded as the mantra to mitigate possible oversupply-related losses in the coming years.
Browse the full Press Release of Global Oil Storage Market at http://www.mrrse.com/oil-storage-industry
Countries in Asia Pacific, such as Singapore, Japan, China, and South Korea, will also generate continued demand for oil storage through 2024, analysts predict.