The crude transportation market facilitates the transporting of crude oil from the oil fields to refineries through various modes of transportation such as pipelines, rail tank cars, oil tankers and supertankers due to its massive volume and fluid nature.
The global 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.
The crude oil transportation facilitates supply chains reliably and cost effectively. Pipeline network remains the dominant mode as it accounts for more than 60% of global crude oil transportation. Oil tankers play a crucial role in transportation of oil exports. New pipelines, railway expansion and larger oil tankers are meeting growing demand. The need for transportation is expected to grow with rising oil production from US shale reserves, Canada’s oil sands and other sources.
Market key trends:
Growth Accelerated by Expanding Pipeline and Port Infrastructure
The key driver for crude oil transportation market is expanding pipeline and port infrastructure to accommodate increasing volumes. Big pipeline projects worth billions of dollars in North America and elsewhere are underway to boost capacity. Development of new loading terminals and deeper channels at strategic ports enable handling of bigger tankers safely. The transportation via pipelines enjoys economies of scale and remains prevalent choice. However, increased usage of rail and larger vessels indicates diversification of supply routes. Continued investment in modernizing logistics is pivotal for sustainability of crude supply chains globally.
The global crude oil transportation market is dominated by the pipeline segment. Pipelines account for nearly three-fourths of the total crude oil transportation, given their cost effectiveness and ability to handle large volumes. Pipelines allow the bulk transport of crude oil from production facilities or storage terminals to refineries or tank farms in an efficient manner. This reduces the overall cost of transporting crude oil. For example, transporting a barrel of crude oil through pipeline is nearly 4-5 times cheaper compared to rail or marine transport. Hence, pipelines remain the most preferred mode for crude oil producers and end users.
The global crude transportation market is expected to witness high growth driven by rising oil demand and increasing offshore production.
Regional analysis: The Middle East region currently dominates the global crude oil production and exports. Countries such as Saudi Arabia, UAE, Iraq, Kuwait are among the top crude oil producers and exporters globally. This region has a well-established crude oil transportation infrastructure in place including pipelines, oil tankers as well as strategic storage facilities. Over 15% of global seaborne traded crude is transported from the Persian Gulf and Red Sea regions. The proximately of the region to major crude deficit regions of Asia Pacific and Europe has made it an important trading hub.
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. Major players are expanding their pipeline and marine tanker fleets to capitalize on rising seaborne crude trade over the coming decade.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it