Oil Refining Global Market Report 2022: Increasing Use of Petroleum-Based Products Bolsters Sector


Dublin, March 24, 2023 (GLOBE NEWSWIRE) -- The "Oil Refining Market By Product Type, By Complexity Type, By Fuel Type, By Application, and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.

Market Synopsis

The global market for oil refining was valued at USD 1,422.00 billion in 2021 and is expected to exhibit a compound annual growth rate (CAGR) of 5.1% over the forecast period.

The growth of this market is largely driven by various factors such as increasing investments in constructing and upgrading oil refineries, rapid advancements in oil refining technologies and industrialization, and rising demand for petroleum products worldwide.

Market Dynamics

Driver: Increasing use of petroleum-based products

Crude oil and other fossil fuel liquids are transformed into petroleum products, which are widely used for various purposes. Biofuels, which are often blended with gasoline and diesel, can also serve as substitutes for petroleum products.

Petroleum has historically been the primary energy source for the United States, used to power vehicles, heat buildings, and generate energy. The petrochemical industry, which is a part of the industrial sector, produces a wide range of intermediate and finished products, such as plastics, polyurethane, and solvents.

In 2021, the United States consumed an average of 19.78 million barrels of petroleum per day, including approximately one million barrels of biofuels. Despite the impact of the COVID-19 pandemic on the economy, total U.S. petroleum consumption in 2021 was around 8% higher than in 2020. The majority of petroleum products were consumed more in 2021 than in 2020.

Key Takeaways

Product Type Analysis:

The global oil refining market has been divided into four segments based on product type:

light distillates, middle distillates, fuel oil, and others. During the forecast period, the middle distillates segment is anticipated to account for the largest revenue share. Middle distillates produce flammable liquids with a shorter carbon chain (between 10 and 20 carbon atoms) compared to light distillates. They are essential in various industries such as power generation, aviation, and marine bunkers.

The light distillates segment is predicted to register a moderate revenue growth rate during the forecast period. Light distillates have the lowest boiling points of all distillates and can exist either in a gaseous or liquid state. They are also flammable compounds that have short hydrocarbon chains.

Complexity Type Analysis:

The global oil refining market has been segmented into four categories based on complexity type:

topping, hydro-skimming, conversion, and deep conversion. The hydro-skimming segment is expected to exhibit a significantly rapid revenue CAGR over the forecast period. Hydro-skimming refineries are more effective than topping refineries because of their additional functional units such as hydro-cracking, hydro-treating, and others.

Topping refineries are simple processing plants that are primarily used to prepare raw materials for the production of petrochemicals and industrial fuels. They are more efficient in areas with fewer refining regulations. Conversion refineries, also known as cracking refineries, include gas oil conversion units in addition to all the fundamental components of topping and hydro-skimming refineries.

Application Analysis:

The global oil refining market has been segmented into various applications, including transportation, aviation, marine bunker, petrochemical, residential and commercial, agriculture, electricity, rail and domestic waterways, and others. The aviation segment is projected to register a significantly rapid revenue CAGR over the forecast period. Jet fuel, which competes with diesel production, is extracted from the middle distillates fraction and is the primary fuel used in aviation.

Regional Outlook

During the forecast period, the North America market is predicted to have the largest revenue share, with the United States being one of the world's leading refiners, producing nearly 19 million barrels of oil daily. The Port Arthur Refinery in Texas is one of the country's most significant economic engines, producing various products such as distillates, gasoline, jet fuel, and chemicals. The operations of U.S. petroleum refineries have benefited from an increasing contribution from Canada's crude oil industry, which is transformed into goods like gasoline and diesel.

In the Asia Pacific region, China is anticipated to register a significant revenue CAGR, with the Fushun Petrochemical Company being the country's leading refinery, focusing on petrochemical products and catalysts. India and its subsidiary, Chennai Petroleum Corp, control 33% of the country's refinery capacity, with a large portion of the oil being imported from the Middle East and processed in the Jamnagar refinery. By 2030, India aims to double its current oil refining capacity.

The Europe market is expected to experience steady growth, with the EU refining industry facing changes in product demand and quality requirements due to stricter product quality specifications, especially regarding the sulfur level of marine fuels. Russian refineries produce and export a significant amount of diesel and fuel oil, essential for processing in complicated refineries' secondary units. European refiners have increased their runs since Russia's invasion of Ukraine, despite high natural gas and hydrogen costs, thanks to strong distillate and gasoline cracks and a lack of diesel supply.

Key Topics Covered:

Chapter 1. Market Synopsis

Chapter 2. Executive Summary

Chapter 3. Indicative Metrics

Chapter 4. Oil Refining Market Segmentation & Impact Analysis
4.1. Oil Refining Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers' analysis High demand for lighter and refined petroleum products Increasing use of petroleum-based products Increased investments in R&D activities
4.2.3. Market restraints analysis Rising adoption of Electric Vehicles (EVs) across the globe Rising demand for clean fuel and natural gas

Chapter 5. Oil Refining Market By Product Type Insights & Trends

Chapter 6. Oil Refining Market By Complexity Type Insights & Trends

Chapter 7. Oil Refining Market By Fuel Type Insights & Trends

Chapter 8. Oil Refining Market By Application Insights & Trends

Chapter 9. Oil Refining Market Regional Outlook

Chapter 10. Competitive Landscape

Chapter 11. Company Profiles

Companies Mentioned

  • Reliance Industries Limited
  • SINOPEC International Petroleum Exploration and Production Corporation
  • Shell plc
  • BP plc.
  • Saudi Arabian Oil Co.
  • Exxon Mobil Corporation
  • Chevron Corporation
  • Marathon Petroleum Corporation
  • Indian Oil Corporation Ltd.
  • S-Oil Corporation

For more information about this report visit https://www.researchandmarkets.com/r/g8hd6j

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