As we move into 2014 Tank World News takes a look at some of the key trends and developments likely to influence the industry this year:
1) Terminal growth – demand continues to grow for storage capacity, especially in North America and Europe. Despite the rise in global concerns regarding CO2 emissions and climate change, energy forecasters still predict long term growth in oil demand. Transportation demand (motorization) particularly in Asia continues to fuel this demand and show little sign of slowing in 2014.
2) Greater demand for liquid bulk storage – has been steadily growing for several years due in part to a structural imbalance between global supply and local demand and is likely to accelerate further, particularly in Asia. Increased varieties and demands of liquid bulks helps force up demand.
3) Diversification in petrochemical products – cleaner and lighter fuels and alternate fuels are in greater demand than even before. Particularly related to growing environmental legislation regarding governing fuels. These new products lead to a greater diversification in storage requirements in terms of location, size, capacity, location etc.
4) M&A’s to continue to influence the industry – 2013 saw a large number of M&A’s particularly in the USA, where opportunistic independent operators have made strides to capitalise on international and domestic global energy usage trends. Which leads us to point number 5…
5) Traders are buying into storage capacity – plus other infrastructure in greater numbers with the ownership of oil storage and processing offering greater substance and stability for them, as well as providing valuable and less volatile income streams.
5) Political instability – although Iran’s relationship with the West is warming up as sanctions are eased, and their ability to export oil increases, the conflict in Syria still rages whilst areas of Iraq, Libya and Egypt remain unstable. Tensions in Asia with China and North Korea also potentially threaten key shipping lanes.
6) Technical safety – increasingly stringent technical, safety and environmental standards continue to influence the development of facilities where complying these standards dominates the design and development of new build facilities and investment in existing sites.
7) Africa – although tank storage has existed in Africa for decades, increased stability, a growing demand, booming populations and size-able discoveries of hydrocarbons have fueled its extensive recent growth with several new facilities mostly on the East Coast are set to come online in 2014. For more on African developments see here.
For a free report on storage trends in the storage industry featuring contributions from DELTA, GPS Chemoil, Saudi Aramco, AQABA Development Corporation, Solvochem, Endress & Hauser, Port of Salalah, Stolthaven Terminals, and many more click here.