FMI anticipates that the global petroleum liquid feedstock market valuation could reach USD 313 billion in 2023. As per the projection of the analysts, the market is likely to record a value of over USD 474.1 billion by 2033, registering a CAGR of 4.2% between 2023 and 2033. Increase in oil & gas prices and the demand for aromatics and growth of the petrochemical industry and automotive fleet are expected to drive the global demand for petroleum liquid feedstock during the forecast period.
A significant area of the energy sector is the petroleum liquid feedstock market. This includes the supply and demand of different petrochemical products used as feedstock in multiple applications. It entails the production, refinement, and distribution of liquid petroleum products. They have various uses, such as the production of chemicals, polymers, and other industrial products as well as fuel for vehicles.
Global supply and demand, geopolitical unrest, and technical advancements are a few of the variables that have an impact on the liquid petroleum products market. The market is also subject to price volatility, with prices often fluctuating in response to changes in global economic conditions, production levels, and supply chain disruptions.
The market is significantly fueled by the petrochemical industry. An increase in petrochemical product utilization in end-use sectors has contributed to the petrochemical industry's growth. Additionally, political and economic considerations have an impact on the price of oil and gas globally which shapes the market expansion.
The production and processing of aromatics are one of the main applications of petroleum liquid feedstock. Owing to their high usage as feedstock for several products, aromatic compounds like xylene, benzene, and toluene are in high demand from different end-use sectors including the chemical industries. This is likely to propel the market for petroleum liquid feedstock to expansion.
Naphthalene is a significant byproduct of petroleum liquid feedstock. The naphthalene products market is an important sub-segment of the petroleum liquid feedstock market and it has experienced significant growth lately. The increased demand for naphthalene products across different end-use sectors, such as textiles, plastics, and construction, is responsible for this expansion.
The growth in technological developments is another key market factor for the petroleum liquid feedstock industry. Specifically, the transportation industry is what drives demand for petroleum liquid feedstock. Local transportation uses naphtha and oil which are petroleum liquid feedstocks. They include motor vehicles, engine vehicles, and bunkers. Marine fuel is also used in the industrial and commercial sectors.
Naphtha is an important product within this market as it is a feedstock used in the production of various products. The naphtha products market is primarily driven by the petrochemical industry which uses naphtha as a feedstock for the production of plastics, synthetic rubber, and other chemicals. The growth of the petrochemical industry across the world has driven the demand for naphtha products in recent years. In addition to its use in the petrochemical industry, naphtha is also used as a fuel for power generation and as a blending component in gasoline production.
To produce low Sulphur fuels and high-value petrochemicals, the industry is witnessing a trend towards lighter and cleaner feedstock. Natural gas liquids (NGL) are being utilized more often as a petrochemical feedstock and as a crude oil alternative while biofuels and renewable feedstocks like biomass and waste oils are also becoming more significant.
The opportunities in the market are vast and varied. Expanding the uses of petroleum products as feedstock for new and ongoing applications in the petrochemical, refining, and energy industries is substantial potential. Developing new and innovative processing technologies to convert lower-value feedstocks into high-value products is another significant opportunity.
| Attributes | Details |
|---|---|
| Petroleum Liquid Feedstock Market Value (2023) | USD 313 billion |
| Petroleum Liquid Feedstock Market Expected Value (2033) | USD 474.1 billion |
| Petroleum Liquid Feedstock Market Projected CAGR (2023 to 2033) | 4.2% |
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The petroleum liquid feedstock market is forecast to expand at a CAGR of 4.2% between 2023 and 2033 in comparison to a 3.7% CAGR registered from 2017 to 2022.
During the historical period, the market experienced fluctuations in both supply and demand. In 2017, the market witnessed a surge in supply owing to increased production from key oil-producing countries such as the United States and Russia. However, given the consistent development rate of the world economy, demand remained comparatively stable.
In the following years, the market experienced further changes as the Covid-19 pandemic led to a significant drop in demand for petroleum liquid feedstock. This was due to the decrease in industrial activity, air travel, and transportation as many countries imposed lockdowns and other restrictions. Hence, petroleum liquid feedstock prices fell sharply in 2020, and the market experienced a significant surplus of supply.
The demand for petroleum liquid feedstock has started to rebound in 2022, nevertheless, as a result of the economies' progressive opening up. This has caused prices to slightly rise. Given the industry's recent growth trend, it is easy to predict that there could be many potential opportunities for the market.
Short Term (2023 to 2026)
Medium Term (2026 to 2029)
Long Term (2029 to 2033)
With the increase in oil & gas prices, the petroleum refining industry is also set to witness increased output to cater to the increased demand for petrochemicals globally. This is expected to drive the petroleum liquid feedstock market over the forecast period.
Principal Consultant
The petrochemical industry is a key driver for the petroleum liquid feedstock market. The increasing demand for petrochemical products from end-use industries such as, plastic, construction and transportation has been driving the growth of the petrochemical industry, which in turn is contributing to the market growth.
One of the main applications of petroleum liquid feedstock is in the processing and manufacturing of aromatics. The demand for aromatics in chemical and other end-use industries has been increasing due to their application as feedstock for various products. Growth of end-use industry applications is expected to surge the demand for aromatic hydrocarbons, such as benzene, toluene and xylene, during the forecast period. This in turn is expected to create significant demand for petroleum liquid feedstock.
The growth in automotive fleet is expected to create high demand for petroleum liquid feedstock as it is primarily used in the processing of gasoline and motor fuels. Globally, Asia-Pacific, Europe and ASEAN are experiencing a steady increase in automotive sales, which is expected to drive the petroleum liquid feedstock market in these regions.
Given the overall growth of the automotive industry in the global market, the petroleum liquid feedstock market is expected to experience significant growth in the coming years.
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A large number of countries are increasing their petroleum liquid feedstock (mainly naphtha) production by investing in new plants and expansions. Countries such as Kuwait, Saudi Arabia, Russia and UAE have invested in new naphtha production plants over the past few years.
For example, Novotek, a company based in Russia, recently started a condensate splitter plant to increase its naphtha production by 4 million metric tons. These strides taken up by different companies in these regions are expected to provide significant growth opportunities in the global petroleum liquid feedstock market.
The growing urban population, coupled with the increase in automotive sales in Asia, has surged the demand for petroleum liquid feedstock in the region. Due to the rapid growth in the Asian market, there still exists a demand-supply gap in the petroleum liquid feedstock market, which has resulted in huge exports from Europe and North America. The demand-supply gap in Asia creates a huge opportunity for global players operating in the petroleum liquid feedstock market.
| Country | United States |
|---|---|
| CAGR | 4.2% |
| Market Value (2033) | 63.9 billion |
| Country | China |
|---|---|
| CAGR | 4.5% |
| Market Value (2033) | 107.4 billion |
| Country | India |
|---|---|
| CAGR | 5.5% |
| Market Value (2033) | 54.4 billion |
| Country | Indonesia |
|---|---|
| CAGR | 4.5% |
| Market Value (2033) | 27.0 billion |
| Country | Russia |
|---|---|
| CAGR | 3.8% |
| Market Value (2033) | 23.6 million |
The United States petroleum liquid feedstock market is highly important for the economy of the country as it is one of the leading producers and consumers of petroleum products. The World Oil research of international petroleum ministries and departments predicted a 14% increase in offshore drilling in North America in 2022.
The availability of significant shale gas and crude oil deposits is likely to have a beneficial impact on the future of the United States industrial sector. For instance, according to the Energy Information Administration (EIA), proven crude oil reserves increased to 367 million barrels in 2019. The extensive shale resource development and the expanding use of data analytics to boost drilling and production are also anticipated to hasten the adoption of oil & gas analytics.
Nevertheless, factors including a drop in exploration and production activity and an increase in inventory costs limit market expansion. With growing concerns over climate change and the transition towards cleaner energy sources, the market is likely to face significant challenges during the forecast period.
For the first time since EIA started providing statistics on renewable diesel production, renewable diesel output topped biodiesel production in the January 2023 Petroleum Supply Monthly (PSM), which contains United States’ biofuel production data through November 2022.
Petrochemical production in China has increased over the past few years due to rapid investment and fierce competition. The China Petroleum and Chemical Industry Federation reports that the country's petrochemical industry enjoyed a boost in revenues. When the nation made significant progress in the construction of massive facilities, production technologies became increasingly accessible.
The sector changed towards specialty chemicals as a result of convenient access to raw materials and easy funding. This reflects the changing demand patterns and the advanced industrial output in the country.
Using an integrated refinery and petrochemicals strategy, China has been able to produce profits on par with the world's top profitable refineries. Asia has the top density of integrated refinery-chemicals plants, with Mainland China possessing the maximum of them. With the rising need for petroleum, China is likely to import a record amount of crude oil in 2023. People are traveling more frequently and new refineries are opening up, which is the primary reason for this.
State-owned oil and gas corporations dominate the Chinese energy industry. Despite being just the sixth leading producer of oil and gas, China is the second leading user of both. China is an important user of oil, and its consumption is rising year after year at varying rates. China, however, typically relies on imports because the supply of oil still cannot keep up with the demand.
In China, refined naphthalene consumption has considerably grown during the last ten years. Long-term increases in industrial output, imports and exports, consumer spending, and capital investment have all contributed to the economy's continued rapid growth. Based on these factors, the China petroleum liquid feedstock market is likely to develop significantly over the forecast period.
One of the extremely fast-growing sectors in India has been the petrochemical sector. The Indian petrochemical sector has had exceptional growth since its inception. Also, this sector plays a significant role in the nation's economy and the expansion and improvement of the manufacturing sector.
Construction, packaging, medicines, agriculture, textiles, and other businesses rely on it as their foundation. The Indian petrochemical sector is oligopolistic and extremely consolidated. On the other side, flexible packaging, personal care, and the healthcare industries have all seen a rapid increase in demand for petroleum liquid feedstock.
Owing to the construction of various refinery projects, the refining capacity has been significantly increasing recently. The Indian government is raising investments in oil and gas pipelines and LNG terminals around the nation as a result of the rise in gas imports. Hence, Growing investments in the midstream oil and gas sector are likely to drive the market.
In the following two decades, India's energy demand is likely to increase by 50%. The rising global population and rising living standards in developing nations are both responsible for this increase in demand. Petroleum fuel continues to be a significant energy source in India even if new and renewable energy sources are becoming more prevalent. The market is likely to upsurge as a result of this tendency, which is likely to last for several decades. Hence, FMI projects that the India petroleum liquid feedstock market could witness significant growth throughout the forecast period.
The Indonesia petroleum liquid feedstock market is likely to grow owing to the rising petroleum product demand spurred on by the expansion of the national economy. The government's attempts to increase the production of natural gas and crude oil are also expected to drive market growth.
Among the nations in Southeast Asia, Indonesia possesses one of the leading proven oil reserves. The nation's economy is expanding quickly as well which is likely to cause demand for petroleum products. Therefore, demand for petroleum liquid feedstock to rise sharply in the future. For market participants, such changes are probably going to offer big possibilities.
The Indonesian Ministry of Industry is still concentrating on growing investment in the chemical sector. It is intended to substitute imported chemical products and materials. Also, the Indonesian government is attempting to manage the building initiatives of the massive chemical sector. The goal of this investment is to improve upstream chemical industry commodities and enable the domestic production of goods that can replace imported petrochemicals.
After the United States and Saudi Arabia, Russia is the world's third leading oil producer. The nation is also the second leading exporter of crude oil in the world and the top exporter of oil to international markets. A 40% drop in offshore drilling costs and a rise in the nation's LNG exports are likely to drive the Russia petroleum liquid feedstock market.
As the global climate agenda takes shape and low-carbon energy sources become more prevalent, there is a potential that demand for Russian oil and its refined products could decline. The need for plastics globally is anticipated to increase gradually at the same time, with petrochemicals emerging as the rapidly growing sector of the world's oil consumption.
Given the instability of the global market structure, the present export trend in the production of large-tonnage petrochemicals generates significant risks for company viability. This impact has been particularly noticeable lately on the synthetic rubber market, where net exports currently account for more than 60% of production volume.
| Segment | Top Type |
|---|---|
| Attributes | Naphtha |
| Details (CAGR) | 4.1% |
| Segment | Top Application |
|---|---|
| Attributes | Aromatics |
| Details (CAGR) | 4.2% |
The petroleum liquid feedstock market is bifurcated into naphtha and gas oil based on type. The naphtha segment dominates the market. The naphtha segment is further divided into light naphtha and heavy naphtha. Pentane and a tad bit heavier substance make up light naphtha. Light naphtha is mixed directly with gasoline in a refinery. It has a larger paraffin concentration than heavy naphtha, boils at a temperature between 35 and 130 degrees Celsius, and is rich in naphthenic and aromatics.
The heavy paraffinic naphtha in the light naphtha is not appropriate as feed for reforming. The substance that makes up heavy naphtha has a density that is similar to that of finished gasoline. It has a high level of aromatic and naphthenic content, making it an appropriate feed for reforming. The balances and pricing of light and heavy naphtha are strongly related despite having very distinct uses.
Steam crackers employ light naphtha as a petrochemical feedstock to create ethylene, which is ultimately used to create plastics. As a petrochemical feedstock, light naphtha is used in steam crackers to create ethylene, which is subsequently used to create plastics. When used as a feedstock in this application, it faces competition from propane and ethane. Due to its greater outputs in this application compared to more naphthenic or aromatic naphtha, more paraffinic naphtha is preferred.
In 2022, the petroleum liquid feedstock market was dominated by the aromatic segment. Over the forecast period, this tendency is anticipated to persist. Manufacturing aromatics is a significant application of petroleum liquid feedstock. Throughout the forecast period, the market is anticipated to be driven by the demand for aromatic hydrocarbons like benzene, xylene, and toluene.
Given that they are a significant source of highly sought-after octane, aromatics play a significant role in the gasoline blending process. The amount of aromatics in a hydrocarbon also affects how well it performs in specific conversion units. Furthermore, aromatics products can be produced using highly aromatic streams. As they can be extracted from reformate, these products are sold as finished goods by numerous refiners.
The global petroleum liquid feedstock market is highly fragmented with Tier-I players accounting for approximately 25%-35% of the global petroleum liquid feedstock market, while other global players along with several local players account for the remaining market share. Global market leaders in the petroleum liquid feedstock market are BP p.l.c., Exxon Mobil Corporation, TOTAL S.A., Royal Dutch Shell plc, Idemitsu Kosan Co., Ltd., Flint Hills Resources and YPF.
Key Market Players and Their Recent Developments in the Petroleum Liquid Feedstock Market
BP p.l.c. – The British Petroleum Corporation plc and BP Amoco plc were both renamed to become BP plc, a global oil and gas corporation with its headquarters in London. According to sales and earnings, it is among the top "supermajors" in the oil and gas industry. It is a vertically integrated business that engages in electricity generation, trading, distribution, and marketing, as well as oil and gas exploration and extraction.
Exxon Mobil Corporation – The ExxonMobil Corporation is a global oil and gas company with its headquarters in the United States. It was created on November 30, 1999, by the union of Exxon and Mobil. These two retail brands are still in use today with Esso for gas stations and downstream goods. The corporation is vertically integrated throughout the whole oil and gas sector. It also has a chemicals section that creates plastic, synthetic rubber, and other chemical goods.
TotalEnergies – One of the seven supermajor oil corporations, TotalEnergies SA is a French multinational integrated energy and petroleum firm that was created in 1924. Its operations span the whole oil and gas value chain, from the exploration and extraction of crude oil and natural gas to the creation of electricity. Its maneuver also includes the movement of petroleum products across international borders and the sale of those products.
The petroleum liquid feedstock market size is valued at USD 313 billion in 2023.
The petroleum liquid feedstock market is projected to thrive at a 4.2% CAGR through 2033.
The petroleum liquid feedstock market is predicted to surpass USD 474.1 billion by 2033.
The petroleum liquid feedstock market developed at a 3.7% CAGR from 2018 to 2022.
The China’s petroleum liquid feedstock market is predicted to be worth USD 107.4 billion by 2033 end.
1. Executive Summary | Petroleum Liquid Feedstock Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Type 5.1. Naphtha 5.2. Gasoil 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Application 6.1. Aromatics 6.2. Olefins 6.3. Urea 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific Excluding China 7.5. China 7.6. Middle East and Africa 8. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Excluding China Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. China Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. BP p.l.c 16.2. Exxon Mobil Corporation 16.3. TOTAL S.A. 16.4. Royal Dutch Shell plc 16.5. China National Petroleum Corporation 16.6. Chevron Phillips Chemical Company 16.7. China Petroleum & Chemical Corporation 16.8. Idemitsu Kosan Co.,Ltd. 16.9. Flint Hills Resources 16.10. YPF 17. Assumptions & Acronyms Used 18. Research Methodology
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Petroleum Liquid Feedstock Market
