Slippery slope: Industry revenue has declined due to previous overproduction

Companies in the Petroleum Refining industry in California have experienced volatile conditions for the majority of the five-year period. The price of crude oil, which is the main feedstock used by refiners to manufacture a wide variety of products, has decreased drastically when compared with its 2012 levels; consequently, top-line industry revenue declined. This industry is anticipated to recover over the next five years as fuel prices rise and consumption increases. Improving economic conditions in California will sustain demand for petroleum products. Capacity upgrades will lead the way as industry players invest in infrastructure that can handle more crude oil...read more.

Industry Statistics & Market Size
Revenue
$61bn
Annual Growth 12-17
-8.3%
Forecast Growth 17-22
Profit
Employment
8,569
Businesses
17
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Industry Threats & Opportunities

  • Over the past five years, profitability has remained steady in the industry despite volatile purchase costs
  • Refineries in this area are primarily isolated from both international and domestic supply sources
  • Crude oil prices are expected to increase, bolstering revenue growth
  • Industry Report - Starting a New Business Chapter

    Prospective entrants to the Petroleum Refining industry contend with high barriers to entry. Refinery infrastructure is very capital intensive, and new entrants must be able to secure adequate funding to enter this industry. Capital is also required to secure crude oil supply contracts and storage and transportation facilities.In California, the presence of stringent gasoline standards has made refiners spend additional amounts of capital on technology and infrastructure over the past few decades.Additionally, environmental regulations present a barrier to entry. The Environmental Protection Agency and various federal regulations ban the use of chemical additives such as butane. The...purchase to read more.

    Additional Insights for the Petroleum Refining in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining in California Industry are

  • Downstream ownership links
  • Guaranteed supply of key inputs
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Total vehicle miles in the Petroleum Refining in California industry impact industry performance..

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    What is the Petroleum Refining in California Industry?

    Industry operators refine crude oil into petroleum products. Petroleum refining involves one or more of the following activities: fractionation, straight distillation of crude oil and cracking. This industry does not include companies that extract crude oil or retail gasoline.

    Industry Products
  • Gasoline
  • Jet fuel
  • Other including diesel
  • Industry Activities
  • Gasoline production
  • Kerosene production
  • Distillate fuel oil (diesel fuel) production
  • Aviation fuel production
  • Residual fuel oil production
  • Lubricant production
  • Producing aliphatic and aromatic chemicals as byproducts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Total vehicle miles
  • US energy production
  • Price of Gasoline in California

  • Current Performance
  • Crashing oil prices
  • Industry landscape
  • Arduous regulations
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability to remain stable
  • Standards and regulation
  • Table: Petroleum Refining in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petrochemical Manufacturing
  • Gas Stations with Convenience Stores
  • Gas Stations
  • International Airlines
  • Domestic Airlines

  • Key Selling Industries
  • Gasoline & Petroleum Bulk Stations
  • Gasoline & Petroleum Wholesaling
  • Oil & Gas Pipeline Construction
  • Oil Drilling & Gas Extraction
  • Oil Pipeline Transportation

  • Products & Services
  • Gasoline
  • Other including diesel
  • Jet fuel
  • Chart: Petroleum Refining in California Industry Products and Services Segmentation

  • Major Markets
  • Households
  • Industrial
  • Other including commercial
  • Aviation
  • Chart: Major Market Segmentation for the Petroleum Refining in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum Refining in California

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Refining in California Industry

  • Phillips 66 CompanyValero Energy Corporation Chevron Corp.PBF Energy Inc.
  • Table: Phillips 66 Company - financial performance
  • Table: Valero Energy Corporation - financial performance
  • Table: Chevron Corp. - financial performance
  • Table: PBF Energy Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Petroleum Refining in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World Price of Crude Oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barrel
  • A unit of measure for petroleum products. It is equal to 42 US gallons.
  • Diesel
  • Midrange petroleum product (with a higher boiling point than gasoline) typically used as a fuel for internal combustion engines, particularly for larger vehicles.
  • Distillation Unit
  • Primary crude oil refining unit, which includes a pipe still for vaporizing the crude oil and a fractionation tower for separating it into fractions with different boiling ranges.
  • Ethanol
  • A form of alcohol used as a fuel, which is primarily made from grains such as corn and soybeans. It is considered to be a renewable fuel with fewer pollutants.
  • Gasoline
  • Light liquid petroleum product typically used as a fuel for internal combustion engines.
  • Refining Margin
  • Difference between the value of all the refined petroleum products a refinery is able to produce from a given quantity of crude oil and its cost.
  • Spot Market
  • A commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective.
  • Why buy this report?

    IBISWorld’s industry research report on Petroleum Refining in California can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Petroleum Refining in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petroleum Refining in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petroleum Refining in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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