Rude oil: Volatile crude oil prices will cause industry revenue to decline

Operators in the Petroleum Refining industry in Ontario refine crude oil into a range of petroleum products including gasoline, diesel fuel, oils and petrochemicals. The industry consists of four operating refineries in Ontario and industry performance is closely tied to global oil prices, as oil is the primary input for industry operators and crude oil price fluctuations tend to be passed along to consumers. Over the five years to 2019, the world price of crude oil has been volatile. Notably, while price declines played havoc with industry revenue industry output was not curtailed at any of the industry's refineries. Due to the labour-intensive nature of the industry, this has helped to maintain a steady level of industry employment...read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 14-19
-4.9%
Forecast Growth 19-24
Profit
Employment
1,738
Businesses
3

Industry Threats & Opportunities

  • The overall structure of the industry has been stagnant for over a decade
  • Industry Report - Industry Products Chapter

    •All refineries across the country produce a broad range of products, and the provincial facilities are no exception. •Each company's provincial refineries website reports diesel and gasoline as primary products, alongside various oils and petrochemicals.•The largest share of production is motor gasoline at 37.2%. This is comparable but slightly lower than the national level due to the elevated production of other goods.•Diesel accounts for 29.2% of industry production, a figure that is slightly higher than the national average.•Other major products include aviation fuel (5.9%) and various fuel items such as heavy fuel oil for marine shipping.•There have been no significant capacity changes over the past five years. The...purchase to read more.

    Additional Insights for the Petroleum Refining in Ontario Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining in Ontario Industry are

  • Access to crude oil supplies
  • Directly operate retail and wholesale stations
  • Access to efficient and environmentally friendly technology
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Demand from truck transportation in the Petroleum Refining in Ontario industry impact industry performance..

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    What's in this report

    What is the Petroleum Refining in Ontario Industry?

    This industry refines crude petroleum through cracking and distillation to produce gasoline, diesel fuels and other fuel oils.

    Industry Products
  • Gasoline
  • Diesel fuel
  • Other petroleum products
  • Light and heavy fuel
  • Aviation fuel
  • Industry Activities
  • gasoline
  • diesel fuels
  • fuel oil
  • aviation fuel
  • heating oil
  • liquefied petroleum gases
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Demand from truck transportation
  • New vehicle sales
  • Canadian effective exchange rate index

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining in Ontario Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petrochemical Manufacturing in Canada
  • Gasoline & Petroleum Bulk Stations in Canada
  • Gas Stations with Convenience Stores in Canada
  • Scheduled Air Transportation in Canada

  • Key Selling Industries
  • Electric Power Transmission in Canada
  • Gasoline & Petroleum Bulk Stations in Canada
  • Oil & Gas Pipeline Construction in Canada
  • Oil Drilling & Gas Extraction in Canada

  • Products & Services
  • Gasoline
  • Diesel fuel
  • Other petroleum products
  • Light and heavy fuel
  • Aviation fuel
  • Chart: Petroleum Refining in Ontario Industry Products and Services Segmentation

  • Major Markets
  • Consumers
  • Industrial
  • Commercial and transportation
  • Aviation and marine
  • Chart: Major Market Segmentation for the Petroleum Refining in Ontario Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum Refining in Ontario

  • Basis of Competition
    Barriers to Entry
    Imperial Oil Limited, Suncor Energy Inc., Shell Canada Limited,
  • Table: Imperial Oil Limited - financial performance
  • Table: Suncor Energy Inc. - financial performance
  • Table: Shell Canada Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining in Ontario Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Petroleum Refining in Ontario Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • World price of crude oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barrel
  • A unit of measure for crude oil and petroleum products. One cubic metre is equal to 6.3 barrels.
  • In Situ
  • Oil sand extraction technique where steam or solvents are injected into oil sand reserves to lower viscosity, permitting oil to flow into wells.
  • Refining Margin
  • Difference between the value of refined petroleum products and the cost of crude oil inputs. Profit margin for petroleum refineries.
  • Viscosity
  • The thickness of crude oil and petroleum products. Low viscosity crude oil typically has lower refining costs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Petroleum Refining in Ontario market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Petroleum Refining in Ontario:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petroleum Refining in Ontario market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petroleum Refining in Ontario, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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