Conventional Oil Market Forecasts to 2030 – Global Analysis By Type (Heavy Ends, Middle Distillates, and Other Types), Sulfur Content (Low Sulphur and High Sulphur), End User and By Geography

Conventional Oil Market Forecasts to 2030 – Global Analysis By Type (Heavy Ends, Middle Distillates, and Other Types), Sulfur Content (Low Sulphur and High Sulphur), End User and By Geography

According to Stratistics MRC, the Global Conventional Oil Market is accounted for $2.7 billion in 2023 and is expected to reach $5.1 billion by 2030 growing at a CAGR of 8.4% during the forecast period. The oil used in automobile engines is known as conventional motor oil, often referred to as mineral oil, ordinary oil, or traditional oil. Its job is to lubricate and safeguard engine components, reducing excessive wear and ensuring the engine runs smoothly. It's likely that some professionals will steadfastly maintain that synthetic oils are superior to conventional ones in every manner. The most notable benefits of utilizing conventional oil are it offers a huge financial savings when it comes to passenger vehicles, conventional oil was the norm.

According to the US Department of Agriculture, palm oil imports were 47.56 million metric tons during the current year, which was higher than the previous year's imports which were 47.21 million metric tons.

Market Dynamics:

Driver:

Technology in the conventional oil sector is developing at an increasing rate

Throughout the forecast period, the conventional oil market is anticipated to experience significant development potential due to rising technological improvements. Technology advancements have made it simpler and less expensive to extract conventional oil. Examples include the creation of more effective extraction processes or the use of enhanced oil recovery methods. This might result in a rise in output and a longer reserve life for conventional oil. For instance, the requirement for extra drilling sites is reduced by the ability of directional drilling and horizontal drilling techniques to drill numerous wells from a single location which is enhancing the growth of the market.

Restraint:

Growing adoption of renewable energy sources

One of the key elements limiting the demand for conventional oil is the increasing adoption of renewable energy sources including wind, solar, and hydroelectric power. Numerous causes, such as worries about climate change, environmental sustainability, and the decreasing cost of renewable energy technology, have contributed to the growing popularity of renewable energy sources. Additionally, governments all over the world are offering subsidies and incentives to promote the use of renewable energy sources. The market for conventional oil is anticipated to be constrained as renewable energy sources continue to gain popularity and the demand for conventional oil declines.

Opportunity:

Expanding global transportation industry

A vital part of contemporary society is the transportation sector. The rise of the transportation business is being fueled by the rising demand for goods and services as well as the rising desire for mobility across all means of transportation, including road, rail, air, and sea. Particularly in developing nations, the expansion of the transportation sector is considered as a major factor in economic development since it increases market access and trade and commerce prospects. To meet the rising demand for transportation services, this has led to increased investment in transportation infrastructure, such as new motorways, railways, and airports. As the number of vehicles on the road increases, so does the need for gasoline and diesel to power cars and trucks with internal combustion engines.

Threat:

Poor heat and cold resistance

The quality of engine oil can be seriously harmed by both hot and cold temperatures. When it's chilly outside, regular oil thickens and takes longer for your car to circulate through the engine. The engine's components could suffer damage if it is not properly lubricated. On the other hand, warm weather can accelerate the evaporation and degradation of conventional oils. This can result in low oil levels, which would result in excessive part wear. Conventional oils' inferior fuel efficiency results in higher emissions than necessary in addition to higher gas prices.

Covid-19 Impact

In addition to posing a serious threat to human health, the global COVID-19 epidemic has also changed people's productivity and way of life. Countries have implemented precautions like lockdowns to stop the disease from spreading as the number of confirmed cases climbs. These acts caused a global economic embargo and a disruption in the supply chains around the world. Due to the strict lockdowns and social segregation policies put in place to stop the virus's spread, COVID-19 had a devastating impact on the conventional oil industry. The demand for conventional oil was impeded by economic instability, a partial economic shutdown, and low consumer confidence.

The middle distillates segment is expected to be the largest during the forecast period

The middle distillates segment is estimated to have a lucrative growth, because middle distillate is created when conventional oil is fractionally distilled to create lighter and heavier products. Physically, they are liquids with ten to twenty carbon atoms that are transparent, colorless to light yellow and combustible. Their carbon chains are longer than those of residual products but shorter than those of lighter distillates. During the forecast period, these are anticipated to be the main variables affecting the conventional oil market size.

The high sulphur segment is expected to have the highest CAGR during the forecast period

The high sulphur segment is anticipated to witness the highest CAGR growth during the forecast period, as it is a common ingredient found in crude oil and petroleum products is sulfur. Sulfur is viewed as an unwelcome pollutant because when it burns, it releases sulfur oxides. On average, a crude oil grade with high sulfur content will be lower. Sour crude is another name for conventional oil that has high sulfur content. It can be used in all industrial settings, buildings, boilers, and power plants. It provides substantial savings because it is a high-temperature burning fuel oil.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to the large oil resources and significant investment in oil infrastructure are features of the region. Geopolitical considerations, such as interactions with OPEC nations and the shale oil revolution, have an impact on the conventional oil business as well. Due to the exploitation of shale oil and gas resources, the US has seen a major rise in oil production in recent years. The US is now less reliant on oil imports and even exports oil to other nations, which has caused a change in the global conventional oil market.

Region with highest CAGR:

Middle East and Africa is projected to have the highest CAGR over the forecast period, because five of the top ten oil-producing countries are located in this region, which accounts for about 27% of global oil production. The Middle East, the second most dynamic upstream market, has seen more than 30% of the expansion of refining capacity in recent years, and even more sizable refining projects will be carried out there in the years to come. Several global oil businesses operate in the Middle East and Africa through joint ventures, production-sharing agreements, and other economic models, despite the fact that state-owned enterprises produce the majority of the world's oil. All of these elements are predicted to accelerate the expansion of the conventional oil market in the area.

Key players in the market

Some of the key players profiled in the Conventional Oil Market include TotalEnergies SE, BP p.l.c., Shell Plc., Exxon Mobil Corporation, Chevron, EQUINOR ASA, Repsol, TotalEnergies SE, Eni, Petrobras, Saudi Aramco, ConocoPhillips, Gazprom, CNPC and PetroChina

Key Developments:

In Aug 2023, TotalEnergies has signed an agreement with CapeOmega Carbon Storage AS, a wholly owned subsidiary of CapeOmega AS, to acquire the 40% participating interest held by CapeOmega in the CO2 storage exploration license

In Aug 2023, TotalEnergies and INPEX have signed an agreement with PTTEP in order to acquire the 100% interest held by PTTEP in the AC-RL7 permit in Australia. Under the terms of the agreement, which is subject to approval by the relevant authorities TotalEnergies will acquire a 26% interest in the permit in line with its equity in Ichthys LNG, while INPEX will acquire the remaining 74% and assume operatorship

In July 2023, ExxonMobil announces acquisition of Denbury, The acquisition is an all-stock transaction valued at $4.9 billion, or $89.45 per share based on ExxonMobil’s closing price. Under the terms of the agreement, Denbury shareholders will receive 0.84 shares of ExxonMobil for each Denbury share.

Types Covered:
• Heavy Ends
• Middle Distillates
• Light Distillate
• Other Types

Sulfur Contents Covered:
• Low Sulphur
• High Sulphur

End Users Covered:
• Automotive
• Chemical
• Industrial
• Power
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements


Companies Mentioned
TotalEnergies SE
BP p.l.c.
Shell Plc.
Exxon Mobil Corporation
Chevron
EQUINOR ASA
Repsol
TotalEnergies SE
Eni
Petrobras
Saudi Aramco
ConocoPhillips
Gazprom
CNPC
PetroChina