Oil Storage Market Share

Asia Pacific Market Analysis

Asia Pacific oil storage market is expected to account for revenue share of around 40% by 2037. The growth in oil storing capacity has its origin in rapid industrialization and high energy requirements arising from developing economies such as China, India, and Japan. Regional governments are developing strategic petroleum reserves to ensure energy security in the face of volatile international oil prices and geopolitical conflicts.

India is one of the leading players in Asia Pacific oil storage market due to an SPR capacity of 5.33 million metric tonnes, which is enough to meet about 9.5 days of net oil import. Beyond the SPR, national oil companies also possess total crude oil and petroleum product storage facilities that will last for 64.5 days of all net imports, thus making great contributions to the country's energy security. The country is taking concrete steps in the field of extending oil storage facilities in India, thus furthering the overall energy strategy with regard to reducing import needs and supplying the chains on a regular basis, especially under conditions of volatility in the global market. These initiatives align with the country's ambition to build more resiliency in the supply chain of India's energy.

China is also witnessing rapid growth in Asia Pacific oil storage market, with the increasing oil importation ratio and rising refinery processing capacity. In March 2023, ETRI from China National Petroleum Corporation said that oil imports jumped 6.2% compared with 2020, reaching 540 million tonnes. In addition, refinery processing capacity similarly increased by 7.8% to 733 million tonnes. This indicates the increasing energy requirement in China and how the country is putting in place mechanisms to ensure these needs through increases in both strategic storage of oil and refining capacity.

Middle East and Africa Market Analysis

Middle East and Africa oil storage market is estimated to capture revenue share of over 32% by 2037. Most countries in the region are particularly keen on developing their petroleum storage capacity to meet the growing demand from the international market. Geographically, this strategic location along key oil trade routes solidifies its position as a critical hub for oil storage and logistics operations. This sector attracts investments because of an improving need for storage infrastructure that ensures better management and distribution of the oil resources available globally.

UAE is also an active participant in the oil storage market and has been actively pursuing projects for crude oil and petroleum product storage capacity. In September 2021, UAE completed the second phase of its storage facility in Fujairah, which it claims will firmly place the company as the second-biggest oil storage operator in the region. Such a development further indicates that the UAE is strategically positioned in the global oil logistics supply chain, with the capacity to handle greater volumes of its strategic stockpile of oil. These growing trends underline the position of the UAE as a center for the storage of oil, making it a crucial, strategic facilitator of efficiency in distribution and stability in world oil storage markets.

Saudi Arabia is building strategic onshore and offshore oil storage facilities to secure its chains of oil supplies. Domestically, strategic facilities have cropped up in places such as Medina, part of a chain across the kingdom designed to store emergency oil supplies outside the oil-rich Eastern Province. These altogether have the capacity to store an estimated 12 million barrels of oil products, including jet fuel, diesel, and gasoline.

Furthermore, companies in Saudi Arabia are expanding their storage presence across the globe. For example, Aramco signed a joint storage agreement with Korea National Oil Corporation of South Korea in 2023 to store 5.3 million barrels of crude oil at KNOC's Ulsan storage base. This deal will help in the development of energy resilience and supply energy stably to meet the demand. These strategic investments further enhance the capability of Saudi Arabia to manage market volatility and strengthen its competitive position in the oil storage market.