Fueled up: Expected rebounds in the price of crude oil are anticipated to improve industry revenue

Operators in the Petroleum Refining industry experienced volatile conditions over the past five years. Rising crude oil prices powered revenue growth until the end of the prior five-year period due to refiners' ability to pass costs down the distribution line. Furthermore, low domestic crude oil prices, when compared with international crude oil, bolstered the competitiveness of US petroleum exports. Consequently, at the end of the prior five-year period, the United States became a net exporter of refined petroleum products for the first time since 1949. However, since 2014, crude oil prices have declined due to slowing international demand and rapid production growth. Consequently, industry revenue is expected to decrease over the five years to 2018...purchase to read more.

Industry Statistics & Market Size
Revenue
$501bn
Annual Growth 13-18
-10.5%
Forecast Growth 18-23
Profit
Employment
67,193
Businesses
257

Industry Threats & Opportunities

  • A rebound in global crude oil prices is anticipated to improve industry revenue and profit
  • Industry operators experienced stable profit margins
  • As WTI prices increase, profit margins are anticipated to remain volatile
  • Industry Report - Industry Key Buyers Chapter

    The Petroleum Refining industry has a moderate level of market share concentration, with the four largest companies accounting for 60.9% of industry revenue in 2018. Due to the high capital costs required to maintain refining facilities, large companies dominate industry labor distribution. According to US Census data, 25.3% of industry enterprises have more than 500 employees, resulting in these companies accounting for 66.9% of total employment. Small petroleum companies that have less than 500 employees are responsible for the remaining industry employment.Over the past five years, operators divested assets to pad profit margins, causing market share concentration to fall during the period. Thi...purchase to read more.

    Additional Insights for the Petroleum Refining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining 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 Demand from gasoline and petroleum bulk stations in the Petroleum Refining industry impact industry performance..

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    What's in this report

    What is the Petroleum Refining 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 including E85
  • Diesel fuel oil
  • Jet fuel
  • Liquefied petroleum gases
  • Residual fuel oil
  • Other refined petroleum products
  • 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
  • Demand from gasoline and petroleum bulk stations
  • GDP of mainland China
  • Total vehicle miles
  • Trade-weighted index

  • Current Performance
  • Domestic crude discount keeps fluctuating
  • Profitability remains stable
  • Trade importance grows
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability remains stable
  • Exports grow
  • Standards and regulation
  • Table: Petroleum Refining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining 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 including E85
  • Diesel fuel oil
  • Other refined petroleum products
  • Liquefied petroleum gases
  • Jet fuel
  • Residual fuel oil
  • Chart: Petroleum Refining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Industrial sector
  • Exports
  • Commercial sector
  • Other
  • Aviation
  • Chart: Major Market Segmentation for the Petroleum Refining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum Refining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Refining Industry

  • Industry Globalization
    Exxon Mobil Corp., Valero Energy Corporation, Marathon Petroleum Corp., Chevron Corp., Phillips 66 Company, Andeavor, BP PLC,
  • Table: Exxon Mobil Corp. - financial performance
  • Table: Valero Energy Corporation - financial performance
  • Table: Marathon Petroleum Corp. - financial performance
  • Table: Chevron Corp. - financial performance
  • Table: Phillips 66 Company - financial performance
  • Table: Andeavor - financial performance
  • Table: BP PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining 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 Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World Price of Crude Oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

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    This report on Petroleum Refining:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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