Step on the gas: The industry is expected to rebound after a period of decline due to volatile oil prices

The Petroleum Refining industry in Texas has experienced volatile conditions over the past five years. Crude oil is the primary input cost for refiners. Due to the input's sensitivity to microeconomic and macroeconomic factors, such as supply and demand and the health of economies domestic and overseas, crude oil is a highly volatile commodity. Strong levels of crude oil production, both domestically and internationally, over the past five years have resulted in a steep decline in the price of crude oil. Consequently, industry players have experienced falling operating costs. However, following this decline in the industry, reversing trends are anticipated to help provide a boost to the industry over the next five years...read more.

Industry Statistics & Market Size
Revenue
$228bn
Annual Growth 12-17
-3.3%
Forecast Growth 17-22
Profit
Employment
16,240
Businesses
30

Industry Threats & Opportunities

  • Reversing economic trends are anticipated to help provide a boost to the industry
  • Techniques such as hydraulic fracturing and directional drilling has allowed oil extraction companies to gain higher yields
  • Domestic oil production is expected to rise, but slowing international production will affect commodity prices
  • Industry Report - Industry Locations Chapter

    Petroleum refining establishments in Texas are primarily located in the Gulf region. The Gulf accounts for an estimated 51.4% of establishments in the industry. This area houses the vast majority of establishments due to the concentration of crude oil extraction operations, a key upstream link of the supply chain. Because crude oil can be costly to transport far distances, petroleum refiners strategically set up their operation in proximity to crude oil sources. In addition, the Gulf region is ideal for operators because of the proximity to waterways and ports, improving their ability to export goods. The East, South and West regions of Texas account for 16.2%, 10.8% and 8.1% of establishments in the industry, respectively. ...purchase to read more.

    Additional Insights for the Petroleum Refining in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining in Texas 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 Price of diesel and World price of crude oil in the Petroleum Refining in Texas industry impact industry performance..

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    What's in this report

    What is the Petroleum Refining in Texas 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
  • Aviation fuel
  • Diesel fuel
  • Residual fuel oil
  • 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
  • Price of diesel
  • World price of crude oil
  • Manufacturing GDP for Texas
  • US energy production

  • Current Performance
  • Falling oil prices
  • Current landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Crude oil prices rise
  • Landscape outlook
  • Table: Petroleum Refining in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining in Texas 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
  • Other
  • Diesel fuel
  • Gasoline
  • Aviation fuel
  • Residual fuel oil
  • Chart: Petroleum Refining in Texas Industry Products and Services Segmentation

  • Major Markets
  • Industrial markets
  • Transportation
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Petroleum Refining in Texas Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Refining in Texas Industry

  • Valero Energy Corporation, Exxon Mobil Corp., Marathon Petroleum Corporation, Motiva Enterprises LLC,
  • Table: Valero Energy Corporation - financial performance
  • Table: Exxon Mobil Corp. - financial performance
  • Table: Marathon Petroleum Corporation - financial performance
  • Table: Motiva Enterprises LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining in Texas 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 Texas 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Petroleum Refining in Texas 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 Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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