PUNE, India, Jan. 08, 2018 (GLOBE NEWSWIRE) -- The global oil and gas storage service market was valued at $8.42 billion in 2016, and is projected to reach $10.38 billion by 2022, growing at a CAGR of 2.6% from 2017 to 2024. In 2016, the storage segment generated the highest revenue share. Among major regions, the U.S. oil and gas storage service market was the highest revenue generating market valued at $2.51 billion in 2016.
The oil storage service market is witnessing a considerable rise in the current scenario. On a national level, governments use storage tanks to increase energy security. Companies also use oil storage as a strategic tool in order to get good returns in the global market. In the context of global concern for ‘peak oil’ and decreasing crude oil reserves, storage tanks pose a unique strategic opportunity. Saudi Arabia, U.S, Russia and Japan are some of the prominent countries using the storage services market, primarily driven by the surging oil production and declining oil prices. However, the gas storage services market is expected to lead the market in terms of growth pace, holding a CAGR of 2.8% in 2016.
In the current scenario, the U.S has emerged as the largest market for oil and gas storage services. The country is now a leading natural gas producer, at 65 billion cubic feet, (Bcf) per day. At the same time, unconventional activity is encouraging the growth of natural gas liquids (NGLs) production, adding over 500,000 barrels of oil equivalent (boe) per day since 2008. Driven by growth in the U.S. natural gas, natural gas liquids, and crude oil, the past 2 years have witnessed a considerable growth in direct capital investment in terms of oil and gas infrastructure assets.