The rising energy demand across the world drives the crude oil category’s growth

Crude Oil Category - Procurement Intelligence

The crude oil category is expected to grow at a CAGR of 3.42% from 2023 to 2030. APAC accounts for the largest share of the category. The rising energy demand across the world, as well as the adoption of unconventional exploration and production technology, are driving category growth. Major corporations are employing a variety of strategies, such as mergers and acquisitions, strategic partnerships and contracts, and the development, testing, and release of new products. For instance, In July 2023, Aramco completed a USD 3.4 billion transaction to purchase a 10% stake in Rongsheng Petrochemical Co. Ltd. through its Dutch subsidiary Aramco Overseas Company BV. Under this deal, the company will be able to deliver 480,000 barrels per day of crude oil to Zhejiang Petroleum and Chemical Co. Ltd (ZPC) in a long-term sale agreement.

To communicate between various machinery & equipment engaged during crude oil production, artificial intelligence (Al) is applied. It is also used to power the many machines and automobiles required for crude oil production. Companies are also taking advantage of the IoT by running hardware and other operating devices through the internet and connected gadgets.

Companies are continuously focusing on partnering or developing their own technology. For instance,

• In July 2023, BP invested USD 10 million in WasteFuel, which plans to build a worldwide system of facilities that transform municipal and agricultural waste into bio-methanol, a form of biofuel that might play an important part in decarbonizing industries such as shipping.

• In June 2023, ExxonMobil entered a 5 MTA carbon capture agreement with Nucor Corporation. ExxonMobil will capture, transport, and deposit over 800,000 metric tons of CO2 per year from Nucor's Convent manufacturing plant in Louisiana.

• In October 2022, Aramco and IBM unveiled exploratory intentions for a strategic collaboration to address industry challenges including circular economy, material discovery, and sustainability by developing Riyadh Innovation Hub. IBM and Aramco want to work together to find potential for using technology to address supply chain efficiency and resiliency issues, such as giving improved visibility and transparency across the supply chain.

• In July 2022, Shell USA, Inc. and Shell Midstream Partners, L.P. (SHLX) announced the execution of a final agreement and merger plan under which Shell USA will purchase all of the shared units representing minority partner interests in SHLX held by the general public. This merger gave Shell access to transport infrastructure including pipelines for crude and refined petroleum products to serve the US gulf coast and Midwest refining regions. 

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Crude Oil Sourcing Intelligence Highlights

• The global crude oil category is consolidated, with numerous large and medium-sized businesses accounting for most of the category revenue. Major businesses are implementing numerous tactics, including mergers and acquisitions, strategic partnerships and contracts, and the development, testing, and introduction of new products.

• The demand for crude oil is inelastic. This is due to the application of crude oil and its derivatives in a variety of industries. However, there is little differentiation in the nature of products. Thus, the bargaining power of suppliers in this category is moderate

• Labor and material & equipment form the most significant cost component in providing crude oil. The overall cost also depends on factors such as infrastructure, transport, taxes & insurance, and maintenance

• Vendors in this category offer services from commodity trading, freight brokerage, storage, logistics, and others

Crude Oil Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

Market report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the crude oil category:

• Labor

• Material & equipment

• Infrastructure

• Transport

• Maintenance

• Taxes & insurance

• Other

Labor and material & equipment form the largest cost components of the crude oil category.

List of Key Suppliers in the Crude Oil Category

• Saudi Arabian Oil Co.

• China Petroleum & Chemical Corp.

• PetroChina Co. Ltd.

• Exxon Mobil Corp.

• Shell PLC

• TotalEnergies SE

• Chevron Corp.

• BP PLC

• Marathon Petroleum Corp.

• Valero Energy Corp.