Fueled up: Improving global economic conditions will sustain demand for petroleum products

Operators in the Petroleum Refining industry experienced volatile conditions over the past five years. Rising crude oil prices powered revenue growth as refiners have passed costs down the distribution line. Furthermore, low domestic crude oil prices, when compared with international crude oil, bolstered the competitiveness of US petroleum exports. This industry is anticipated to recover over the next five years as fuel prices rise and consumption increases. Improving global economic conditions will sustain demand for petroleum products. Capacity upgrades will lead the way as industry players invest in infrastructure that can handle more crude oil. However, environmental regulations stipulating the inclusion of renewable fuels will pose a challenge to operators...purchase to read more.

Industry Statistics & Market Size
Revenue
$518bn
Annual Growth 12-17
-9.8%
Forecast Growth 17-22
Profit
Employment
61,998
Businesses
266

Industry Threats & Opportunities

  • Profit and demand have steadily recovered, while low domestic oil prices bolstered margins
  • Profit margins remain below historical highs, causing operators to reduce refinery output
  • Crude oil prices are anticipated to increase over the next five years
  • Industry Report - Industry Investment Chapter

    Petroleum refining is a highly capital-intensive process, as the initial refinery construction requires significant capital investment. Nearly all aspects of the refining process require capital equipment, such as storage tanks, distillation columns, boilers, catalytic crackers, reformers and alkylation units. However, typically, the bulk of capital expenditures takes place when the refinery is constructed. As a result, yearly depreciation costs are significantly lower than overall capital investments. This industry is also reliant on skilled labor, such as petroleum and chemical engineers, supply chain managers and refinery workers, resulting in high average wages...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..

    shopping_cartPURCHASE OPTIONS

    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
  • 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 disappears
  • 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
  • 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 competitionExternal 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, Royal Dutch Shell PLC, BP PLC, Andeavor,
  • 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: Royal Dutch Shell PLC - financial performance
  • Table: BP PLC - financial performance
  • Table: Andeavor - 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (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
    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?

    IBISWorld’s Petroleum Refining Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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:
    • 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.

    Contact Us

    Want to speak to a representative? Call us.

    clear