Over the past five years, the Bulk Fuel Storage industry's structure has been stable.
Melbourne, Australia (PRWEB) May 30, 2013
The Bulk Fuel Storage industry provides essential storage services for the petroleum sector. The industry acts as a repository for petroleum products in transit from refiners and importers. Downstream petroleum participants, like wholesalers and retailers, take delivery of the products stored by the industry. In practice, one company tends to operate the entire supply chain of import, refinery, wholesale and retail processes. Competition in the sector is vertical. According to IBISWorld industry analyst Caroline Finch, “the Bulk Fuel Storage industry in Australia is extremely oligopolistic and has a very high market share concentration”. The industry's four major players are Caltex, Shell, ExxonMobil and BP.
Within this framework, the Bulk Fuel Storage industry provides the necessary function of storage. Without access to industry services, players cannot enter the Australian market. The industry generates revenue by charging upstream and downstream users for storage based on the volume of fuel product it handles. In the five years through 2017-18, the industry is forecast to grow at a compound annual rate of 0.2%. Finch adds, “in 2012-13, the industry is expected to grow 0.2% to be worth $2.6 billion”. This low rate of growth is in line with the mature nature of industry services and the slow rate of change for fuel demand. Petroleum products are directly or indirectly used across the entire Australian economy. This diversification of demand means that only large macroeconomic events influence volume throughput.
The Bulk Fuel Storage industry is expected to follow a similar trajectory in the five years through 2017-18. Internally the story is likely to be different. Major petroleum companies have been cutting back on their non-extraction activities. In the past five years, wholesale and retail margins have declined in Australia while refining has made outright losses. In response, there has been closure of refineries and players have exited retail and wholesale markets. These trends set the stage for potential new entrants or shifts in market share concentration in the next five years.
For more information, visit IBISWorld’s Bulk Fuel Storage report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry store fuel in bulk. The fuel is stored in large quantities in tanks or drums and is not transformed or processed while it is in storage.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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