Industry Analysis & Industry Trends
This industry has expanded on average during the past five years, but revenue exhibited high volatility. During the recession, global demand for crude oil and petroleum products plummeted, and prices quickly followed, causing industry revenue to contract. The Gasoline and Petroleum Bulk Stations industry is expected to return to growth over the five years to 2020, slowly recovering from the anticipated collapse in industry revenue in 2015. Steady domestic and global economic growth will bolster demand for the oil and petroleum products stored by industry operators, bolstering industry sales volumes. Additionally, the expansion of pipeline infrastructure will fuel crude oil and petroleum product exports, causing domestic prices to converge on higher international prices... purchase to read more
Industry Report - Starting a New Business Chapter
High barriers to entry protect incumbent players. Petroleum bulk stations require significant capital resources during the construction process, making it difficult for small firms to participate in this industry. Additionally, prospective entrants must navigate extensive government regulations, which increase start-up costs. Successful firms also require strong relationships with upstream petroleum product suppliers, further raising the barriers to entry.
Over the past five years, capital costs have increased, thereby raising barriers to entry. Terminals and bulk stations embraced facility automation, inventory management and other labour-saving technologies. As a result, newly constructed terminals and bulk stations require more costly technology infrastructure... purchase to read more