Crude Oil Market Size, Share, Growth and Global Industry Analysis By Type (Light Distillates, Light Oils, Medium Oils, and Heavy Fuel Oil), By Application (Transportation Fuel, Ethylene, Acrylic, Butadiene, Benzene, Benzene, And Others), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 April 2024

CRUDE OIL MARKET REPORT OVERVIEW

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The global crude oil market size is anticipated to be worth USD 2875.7 million in 2022 and is projected to touch USD 3522.16 million by 2031 with a CAGR of 2.3% during the forecast period.

Crude oil is also popularly known as petroleum, It is separated and refined on the basis of its boiling points, Crude oil can be converted into a number of useful consumer goods and products. Gasoline, petrol, kerosene, plastic, chemical reagents and asphalt are the byproducts of petroleum.

New technologies and discoveries have been made to extract crude oil and its byproducts. This has been one of the latest trends in the market. The variety of byproducts available and the extreme dependency on petroleum are the major driving factors for the market during the forecast duration.

COVID-19 impact:  Steep Declines in The Automotive and Construction Industries Affected the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The spike in CAGR is attributable to the crude oil market growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic negatively impacted nearly all economies globally. A lot of markets and industries were also affected as a result. Crude oil market also became a victim of the pandemic, experiencing significant decline and some major roadblocks. Even before the pandemic began, the petrochemical industry was under a crisis and had witnessed slowing demand growth and a shrinking value pool. However, when the pandemic began, these factors became much more prominent and pronounced.

The market also faced structural disruption because of the transition from non-renewable sources of energy to renewable sources of energy. The sudden decrease in the share of the automotive and construction industries was one of the major setbacks for the crude oil industry during the pandemic. Apart from this, the other reasons that hampered the market were shutting down of many plants, a surge in the price of raw-materials and workers, spike in the health-care focused activities, and varying levels of exposure to the end market users.

LATEST TRENDS

"New Emerging Technologies for Crude Oil Exploration to Boost Market Growth "

New technologies and discoveries are coming into light that make petroleum exploration much safer and better. Some of these innovations include the usage of Artificial Intelligence (AI), drones, Internet of things (IOT), electronic monitoring and big data analytics. The usage of these technologies to extract crude oil and its byproducts will create a revolution in the industry paving way to increased crude oil market share.

Artificial intelligence or AI is being used to communicate and convey the tasks and procedures to be completed. It is also being utilized to operate the various machineries and automobile that are necessary for the crude oil extraction. Companies are also using internet of things to their advantage by running the hardware and other operating devices through internet the internet and connected devices. During the extraction of oil and gas, it is crucial to constantly monitor the conditions to ensure safety. The producers will no longer have to rely on people to monitor the conditions. This will be very efficiently performed by electron monitoring.

CRUDE OIL MARKET SEGMENTATION

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• By Type:

The market can be divided on the basis of type as follows:

Light Distillates, Light Oils, Medium Oils, and Heavy Fuel Oil. The light distillates segment will be seen dominating the market share in the upcoming years.

• By Application:

Classification based on application is as follows: Transportation Fuel, Ethylene, Acrylic, Butadiene, Benzene, Benzene, and others.  Transportation Fuel segment is anticipated to dominate the industry through 2028.

DRIVING FACTORS

"Various By-Products Extracted from Crude Oil to Increase the Market Growth"

Crude oil or petroleum often referred to as the “black gold” is a key product that can produce various different byproducts. When petroleum is extracted, many other products can also be obtained very conveniently just by boiling them at different temperatures. The various components of crude oil have a lot of commercial value.

Kerosene, diesel, asphalt, gasoline, naphtha, paraffin wax, propane, waxes, benzene, petroleum jelly, napalm, bandage, prosthesis and jet fuel are the various components and byproducts that have their own worth and value in the market. With the cost of extracting one material, many other resources are also accessed, which is the major advantage for the manufacturers. Increasing demand for these commodities will positively influence the market outlook.

"Extreme Dependency on Petroleum to Drive the Market Growth"

Industrialization and globalization in the past few decades have accelerated the demand for crude oil and its byproducts. Industries and automobile industries are increasingly depending on the various fuels. Even though people are preferring renewable sources of energy these days, using them effectively has not been possible yet.

Whereas, crude oil and its components such as petrol, diesel, and kerosene have become the most reliable and convenient sources of fuel and energy. They are not only used as fuels for vehicles but they are also used in factories and industries to run the machines and equipment. This extreme dependency on the product will continue to be a key factor propelling the market growth in the future.

RESTRAINING FACTORS

"Pollution and Dangerous Emissions Caused by Crude Oil to Decline Market Growth"

The usage of petroleum and crude oil in the industries causes a lot of pollution, which is promoting a widespread shift towards renewables. This pollution caused has had many negative impacts on the environment. The harmful emissions released such as carbon dioxide, carbon monoxide, and many other greenhouse gases are not only affecting the health of the people in the long-term but are also taking a toll on the environment.

Global-warming, depletion of the ozone layer, sea level variations, and sudden climate changes are some of the other side effects of fossil fuels. As most of the extractions take place in water bodies such as seas and oceans, oil spill is a very common scenario. Oil spill is one such disaster that can totally disrupt the sea lives. Because of all these negative effects of using the fossil fuels, industries are looking and opting for cleaner and renewable alternatives. Using solar and wind energy is also gaining popularity. Going in for electric vehicles rather than the normal vehicles has now become the standard. All these factors can together disrupt the market growth in the long-term.

CRUDE OIL MARKET REGIONAL INSIGHTS

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North America is anticipated to dominate the global crude oil market share in the forthcoming years. The regional dominance can be attributed to the dominance of the U.S. in the global petroleum industry. According to a report by NS ENERGY, the U.S. became the world’s largest crude oil producer, pumping 17 million barrels per day and surpassing Saudi Arabia.

The major reasons behind spike in the production of crude oil by the U.S. are improved technologies, advanced drilling techniques. The new advancements have provided access to the unconventional resources that were otherwise not available for the process of extraction. The major states from where the petroleum extraction takes place are: Texas, New Mexico, Oklahoma, Colorado and North Dakota. Due to the aforementioned factors, North America will hold a major share of the market over 2022-2028.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• Saudi Aramco (Saudi Arabia)
• China National Petroleum Corporation (China)
• BP (U.K.)
• Exxon Mobil (U.S.)
• Total SA (France)
• Chevron Corporation (U.S.)
• Lukoil (Russia)
• ONGC (India)
• Valero Energy (U.S.)
• JX Holdings (U.S.)
• Phillips 66 (U.S.)
• Marathon Petroleum (U.S.)
• Petrobras (Brazil)
• Pemex (Mexico)
• Equinor (Norway)
• Kuwait Petroleum Corporation (Kuwait)

Report Coverage

The report provides an insight into the crude oil industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations