Need for Oil Storage Market Facilities on the Rise as Global Supply of Crude Oil Surpasses Demand

Global Oil Storage Market Benefits from Rising Participation of Africa, Middle East
The global oil storage market has become a key economic as well as political concern in recent years due to the dynamic nature of the global oil and gas industry. The consistent flux in the petroleum sector, brought about by the introduction of advanced technology and the rising incorporation of alternative energy sources in the global energy framework, is likely to enable steady growth of the global oil storage market in the coming years. According to Transparency Market Research (TMR), the global oil storage market is expected to reach a total volume of 2,027 million cubic meter by the end of 2024.
What are the leading segments of the global oil storage market?
The global oil storage market is segmented on the basis of reserve type into strategic and commercial oil storage facilities. Due to the key role played by petroleum in national security applications and the constant need for petroleum in case of military operations, strategic reserves are likely to account for the leading share in the global oil storage market. The segment accounts for close to 80% of the global oil storage market and, despite the steady growth expected of the commercial oil storage segment, is expected to retain dominance in the market in the coming years.


The commercial oil storage segment is likely to exhibit steady growth at a robust 7.80% CAGR between 2016 and 2024. The state of flux in the global petroleum sector is likely to drive the adoption of commercial oil storage facilities, enabling steady growth of the segment in the global oil storage market in the coming years.
Which are the key regional markets for oil storage technology and equipment?
Regionally, the global oil storage market is likely to be dominated by the Middle East and Africa in the coming years, as the region counts as the leading producer of oil and is thus likely to be a significant mover in the global oil storage market in the coming years. The concentration of OPEC members in the Middle East is a key factor likely to drive the demand from the region’s oil storage market.
In May 2017, Equatorial Guinea announced its collaboration with Saudi Arabia in building the largest oil storage facility in West Africa. The facility, which will be the third largest in the continent, signals the rising prominence of Africa in the global oil storage market as well as the wider petroleum sector. The rising investment in offshore petroleum reservoirs off West Africa is further likely to drive the oil storage market in West Africa. Due to the growing economic and political ties between countries in the Middle East and Africa, this region is likely to play a large role in determining the trajectory of the global oil storage market in the coming years.
North America and Asia Pacific are also likely to feature prominently in the growth of the global oil storage market in the near future. The oil storage market in North America has been driven by the rising public and private investment in shale gas, whereas the booming offshore petroleum sector in Southeast Asian countries such as China, Singapore, and South Korea is likely to benefit the oil storage market in Asia Pacific. The Asia Pacific oil storage market is expected to exhibit a sturdy CAGR of 8.22% from 2016 to 2024. 

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