Oil pipeline infrastructure allows crude and refined products to be safely transported to demand areas while maintaining standard pressure and flow conditions. A vast network of pipes of various sizes and uses, such as large diameter transmission lines, trunk lines, and small gathering lines, make up the transmission infrastructure. Steel or plastic tubes are used to construct oil pipelines that run underground. Natural gas, biofuels, and liquid petroleum are transported through pipelines by pump stations located along the route. Long-distance transport is facilitated by interstate or intrastate pipelines, and transport from wellheads to central collection points for processing and storage is facilitated by collection lines..
Market Scope and Structure Analysis
Description
There are two main categories of pipelines which are used to transport energy products such as crude oil and petroleum. Natural gas pipelines transport natural gas from fixed sources such as gas wells or import/export facilities to a range of destinations, including houses and other export facilities. On the contrary, crude oil, natural gas liquids, and refined goods, are transported via petroleum pipelines. Crude oil or natural gas liquid from the production wells is collected by collecting pipeline systems. It is then delivered to a refinery via the crude oil pipeline systems. When the petroleum is refined into gasoline or kerosene, it is delivered to storage or distribution stations through refined product pipeline networks.
COVID-19 Impact Analysis
- COVID-19 pandemic ceased the production of various products in the oil pipeline infrastructure industry, which is attributed to the global lockdown. This has hampered the growth of oil pipeline infrastructure market from the last few months and is likely to continue through 2022.
- COVID-19 affected the sales of oil pipeline infrastructure in the first quarter of 2021 and is anticipated to have a negative impact on the market growth throughout the year.
- The major demand for oil pipeline infrastructure was previously noticed from giant manufacturing countries, such as North America, Europe, Asia-Pacific, and South America, which are negatively affected by the spread of the coronavirus, thereby declining the demand for yarders.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Oil pipeline infrastructure manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
- Oil pipeline infrastructure manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distance, and ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
Water, hazardous liquids, and raw materials are transported across countries via a large network of interstate and intrastate pipelines. Each year, pipelines transmit trillions of cubic feet of natural gas and hundreds of billions of tones of liquid petroleum products across various countries. The pipeline network is fueling the nation`s everyday operations and livelihoods by distributing energy-related resources. These considerations drive demand for oil pipeline infrastructure.
Furthermore, Saudi Arabia, Iraq, and Iran, among other oil-rich countries, are spending extensively in infrastructure construction to enable export and ensure a consistent flow of resources to demand centers. For instance, in August 2020, Saudi Arabia announced two oil & gas fields, such as Hadat Al Hajrah and Abraq Al Talul, were discovered by Saudi Aramco, the Saudi Arabian Oil Company. The company is expected to work on oil and gas transportation and dig additional wells to determine area and size. Therefore, the need to facilitate easy transportation of crude oil and processed products tied to long-term supply contracts spurs the establishment of specialty oil pipeline networks.
- The expansion of the offshore oil pipeline infrastructure industry is fueled by increase in subsea hydrocarbon reserves as oil prices rise. For instance, in April 2019, Exxon Mobil and Repsol formed a joint venture to undertake subsea exploration and production in the Caribbean Sea.
- Similarly, in July 2021, Russia and Pakistan agreed to construct a 1,100-kilometer gas pipeline network from Port Qassim in Karachi to Lahore for $2.5-3 billion by the end of 2023. Large-scale projects like this are expected to propel the pipeline sector forward, which will provide market participants with opportunities in the near future.
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- India is upgrading its gas pipeline infrastructure to meet growing demand. The Indian Government approved a pipeline project for the union territory of Jammu and Kashmir in its annual budget for 2021. In addition, the country aims to boost natural gas's portion of the energy basket to 15%, with a $66 billion investment in gas infrastructure, including gas pipelines, city gas distribution (CGD), and liquefied natural gas (LNG) regasification terminals.
Key Benefits of the Report
- This study presents the analytical depiction of the oil pipeline infrastructure industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, opportunities, and the oil pipeline infrastructure market share.
- A quantitative analysis highlights the oil pipeline infrastructure growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers in the market.
- The report provides a detailed oil pipeline infrastructure analysis based on competitive intensity and how the competition will take shape in coming years.
Key Market Segments
- By Product
- Crude Oil
- Petroleum Product
- By End-user Industry
- By Region
- North America
- UNITED STATES
- CANADA
- MEXICO
- Europe
- FRANCE
- GERMANY
- ITALY
- UNITED KINGDOM
- Rest of Europe
- Asia-Pacific
- CHINA
- JAPAN
- INDIA
- SOUTH KOREA
- Rest of Asia Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Enbridge Inc.
- Company 9
- Company 8
- Company 7
- Company 6
- Company 10
- Magellan Midstream Partners, L.P.
- Bechtel Corporation
- TC Energy Corporation
- Kinder Morgan, Inc.