Authored By: Sarah
11 Jul 2024

 Oil and Gas Logistics Market Size to grow by USD 4.56 billion between 2024-2028

According to a research report “ Oil and Gas Logistics Market” by Application (Onshore, Offshore) Type (Pipeline, Railroads, Tanker and trucks) Geography (North America, Middle East and Africa, Europe, APAC, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 4.56 billion, at a CAGR of  5.17% during the forecast period. In the Oil and Gas Logistics Market, transitioning freight transportation from trucking to intermodal services can yield significant cost savings of up to 20%. The logistics sector is witnessing substantial investments in intermodal infrastructure, such as container yards, depots, and rail terminals, which are projected to increase in the upcoming years. For instance, BNSF Railway announced plans for a major rail complex, valued at over USD 1.5 billion, encompassing a rail yard, intermodal facility, and warehouses for transloading international to domestic containers. This expansive project, spanning approximately 4,500 acres, will revamp a significant BNSF yard and shop facility.

Browse market data tables, figures, and in-depth TOC on “Oil and Gas Logistics Market” by Application (Onshore, Offshore) Type (Pipeline, Railroads, Tanker and trucks) Geography (North America, Middle East and Africa, Europe, APAC, South America) Global Forecast to 2028. Download Free Sample

 

By Application, the Onshore segment is projected to dominate the market size in 2024

In the oil and gas industry, pipelines serve as a primary mode of transportation for both crude oil and refined petroleum products. According to industry data, approximately 70% of crude oil and petroleum products in the US, and 90% of natural gas and petroleum products in Canada, are transported via pipelines. This encompasses both long-distance inter- and intra-state transmission systems, as well as local or regional gathering systems that aggregate production for delivery into common carrier transmission networks. However, the market for pipeline transportation faces challenges due to insufficient pipeline capacity and the increasing preference for railroad transportation methods for oil and gas. Moreover, transportation costs have escalated, adding to the market's woes.

By Type, Pipeline  segment is expected to hold the largest market size for the year 2024

The onshore segment of the oil and gas logistics market encompasses a comprehensive range of onshore crude oil and refined product infrastructure, including pipelines, terminals, trucks, railcars, and rail loading and unloading facilities. These assets, in conjunction with other means of transportation owned by the company or third parties, are utilized to cater to client and business requirements. Onshore facilities and transportation assets are intricately connected, with services extending to the transportation and delivery of crude oil and gases to refineries and industrial users. Additionally, these services facilitate the linkage of producers to extensive interstate pipelines and refineries. Trucks, trailers, and railcars are employed for the transportation of crude oil and petroleum products to consumers, while railcar loading and unloading activities at crude-by-rail terminals and industrial gas activities such as wholesale CO2 selling and syngas processing are also integral components of onshore logistics solutions.

North America is forecasted to hold the largest market size by region in 2024

The North American market holds significant revenue potential in the global oil and gas industry, with the United States being a major contributor due to its substantial natural gas reserves, particularly unconventional ones in shale formations. However, the exploration of these reserves, located in ultra-deep offshore areas and requiring advanced hydraulic fracturing and horizontal drilling technologies, comes with high production costs. Despite these challenges, the US is projected to produce 3.9 million barrels per day (mb/d) of shale oil by 2025, positioning North America as a leading producer of oil and gas products in the coming years.

The Oil and Gas Logistics Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • ACI Cargo
  • Agility Public Warehousing Co. K.S.C.P
  • Aramex International LLC
  • ASCO Group
  • AsstrA Associated Traffic AG
  • BDP International Inc.
  • Berrio Logistics India Pvt. Ltd.
  • Bollore SE
  • C H Robinson Worldwide Inc.
  • CEVA Logistics S A
  • DB Schenker
  • DEHOCO License AG
  • Deutsche Post AG
  • Gulf Agency Co. Ltd.
  • Halcon Primo Logistics Pte Ltd.
  • Kuehne Nagel Management AG
  • NOATUM HOLDINGS SLU
  • Reliance Logistics Group Inc.
  • Riada Shipping and Logistics
  • Tudor International Freight Ltd.
.

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Research Analysis Overview

The Oil and Gas Logistics Market encompasses the transportation, storage, and distribution of hydrocarbon reserves, including oil and extracted natural gas, from offshore and onshore extraction sites to various end-users such as homes, gas stations, distribution centers, processing plants, refineries, and the production of petrochemical products. With the increasing number of oilfield discoveries, the demand for high-end logistics solutions has surged. Offshore oil rigs require specialized logistics to transport drilling equipment and large machinery to remote locations. Onshore drilling sites also necessitate the movement of equipment and materials. The integration of blockchain technology in supply chain solutions enhances transparency and security in the oil and gas logistics market. Transportation vehicles, including trucks, ships, and pipelines, play a crucial role in the oil and gas logistics market. The extraction site to refinery process involves the transportation of crude oil, followed by the refining of oil into refined products such as gasoline, diesel, and jet fuel. Additionally, the transportation of modular refinery materials and petrochemical products is a significant aspect of the oil and gas logistics market. Contract logistic service providers offer comprehensive solutions, ensuring the efficient and timely delivery of goods and services, making them an essential partner in the oil and gas industry.

Market Research Overview

The Oil and Gas Logistics Market encompasses the transportation, storage, and handling of crude oil and natural gas from upstream extractive sites to downstream refineries, distribution centers, and end-users. This market is segmented into offshore and onshore operations. With the increasing number of oilfield discoveries, the demand for high-end logistics solutions is surging. Advancements in technology, such as blockchain, IoT, AI, and automation, are revolutionizing supply chain efficiencies and visibility in this sector. Offshore operations, with their remote locations and large equipment, particularly benefit from these innovations. Safety risks, including fatalities, injuries, and accidents, are significant concerns in the oil and gas industry. Logistics solutions must prioritize safety, ensuring the protection of personnel, public health, and the environment. Spills or leaks, emissions, and the environmental impact are also critical issues. International expansion and the need for crude oil suppliers to meet energy source demands necessitate efficient transportation lead times. Supply chain solutions must address energy security concerns, integrating pipelines, storage facilities, and transportation vehicles into their strategies. The market includes various stakeholders, from personnel and drilling equipment suppliers to refineries producing refined products, petrochemical plants, and crude oil production sites. The upstream logistics support sector focuses on the transportation and storage of unconventional hydrocarbon reserves, such as shale gas and tight oil. Logistics services for the oil and gas industry require specialized expertise, handling drilling equipment, drones, and modular refinery materials. Companies providing these services must navigate complex regulations and ensure compliance with safety standards. In conclusion, the oil and gas logistics market is a global monopoly, with numerous stakeholders and complexities. Effective logistics strategies must address safety concerns, environmental impact, transportation lead times, and technological advancements to meet the demands of the ever-evolving energy landscape.

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Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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