LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global oil and gas storage market and the market is poised to experience spend growth of more than USD 2 billion between 2018-2023 at a CAGR of over 3% during the forecast period. Request Free Sample Pages.
Read the 128-page research report with TOC and LOE on "The Global Oil and Gas Storage Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
The prices of utilities like oil and gas are typically volatile by nature. The recent decline in oil prices has motivated enterprises to augment their inventory of oil and gas to immune themselves from any volatilities in the oil and gas prices in the future. To facilitate an efficient and a safe transportation of the same, government agencies and oil and gas production and distribution companies heavily rely on underground or above-the-ground- facilities such as containers, tanks, empty salt caverns, and floating vessels. This will act as one of the major contributors to spend growth in the oil and gas storage market through 2023.
Europe will account for a major spend share in the oil and storage market owing to the fortification and expansion of energy storage facilities such as the LNG storage infrastructure. These initiatives are seen as attempts to reduce dependence on Russia for the supply of utilities and the growing focus towards cleaner energy sources. Suppliers in the oil and gas storage market in North America will witness several growth opportunities following the slump in the price of crude oil. This will create the need for refining hubs which will contribute to spend growth in the oil and gas storage market in this region.
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Insights into the market pricing trends
Environmental authorities are tightening their scrutiny on operations at oil and gas storage facilities. According to the oil and gas storage price trends, this means a significant increase in the compliance costs incurred by suppliers. This cost includes the expenses incurred in regular compliance inspection to monitor the effectiveness of safety-related controls and initiatives undertaken to reduce environmental footprint of storage facilities. Such increase in expenses will be ultimately compensated by buyers in the form of an excess procurement spend.
- According to the oil and storage market price trends, an increase in the logistics cost of oil and gas storage suppliers due to the rise in fuel prices is also expected to affect the market price during the forecast period.
What are the strategies to adopt to optimize procurement spend in this market?
Location of storage facilities
Considering the fact that logistics costs will accelerate supplier’s OPEX, it is prudent of buyers to engage with suppliers who have storage facilities located at the vicinity of their supply routes or markets. This will minimize the logistics and transportation expenses of suppliers which, in turn, will have a positive impact on buyer’s procurement spend in the oil and gas storage market.
Opt for suppliers who can provide complementary functionalities at their storage facilities
One of the highly recommended oil and gas storage procurement best practices is to engage with suppliers who have facilities with associated infrastructure that includes suitable port and docking facilities, pipeline infrastructure, and other storage infrastructure. These facilities will help buyers to reduce complexities associated with the handling of cargo as well as to achieve cost savings as they will be readily available with suppliers, thus eliminating the need to source from external agencies.
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Some of the key topics covered in this report are:
- Oil and gas storage market spend segmentation by region
- Total cost of ownership analysis in the oil and gas storage market
- Regional spend opportunity for oil and gas storage suppliers
- Oil and gas storage suppliers cost structure
- Oil and gas storage pricing models analysis
- Oil and gas storage procurement best practices
- Category management objectives
- Cost saving opportunities in the oil and gas storage market
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