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.
Order your copy of the Crude Oil Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
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
Browse through Grand View Research’s collection of procurement intelligence studies:
• Big Data Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Employee Training Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
List of Key Suppliers
• 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.
Crude Oil Procurement Intelligence Report Scope
• Crude Oil Category Growth Rate: CAGR of 3.42% from 2023 to 2030
• Pricing Growth Outlook: 7% - 13% (annual)
• Pricing Models: Spot pricing model, cost-plus pricing model, future price model, OPEC pricing model
• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence
• Supplier Selection Criteria: Technology, environmental record, financial stability, service, quality, service, reliability, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
