Petroleum Market Research
The petroleum industry is an integral element of the global economy as it is one of the primary sources of energy for transportation, heating, and power generation today. Moreover, as a major source of chemicals, petroleum is an essential global commodity since its value to modern industrialized economies is critical.
Therefore, petroleum market research is vital for companies in this industry. Organizations in the petroleum industry require large investments to stay relevant in the market and obtain a high return on investment.
Importance of petroleum market research
- Petroleum market research provides accurate insights into the current state of the market and future trends.
- The research enables companies to gain a better understanding of the factors driving supply and demand, as well as the major players and competitors in their industry.
- Petroleum market research helps companies recognize emerging opportunities and potential challenges.
- Petroleum market research also empowers companies to gain a competitive advantage by keeping abreast of the latest industry trends and developments, enabling them to make better decisions, identify potential partners, and maintain their profits despite the constant changes in the energy market.
Key Benefits of petroleum market research for stakeholders
With petroleum market research, organizations can anticipate and mitigate any adverse impacts by analyzing threats such as the rising interest in renewable energy sources and environmental protection.
On the other hand, researchers can gather useful insights into the current state of the petroleum market, including trends in demand, supply, and prices.
Particularly, some of the most important benefits that petroleum market research includes:
- Identification of further exploration and production opportunities by screening the up-to-date and reliable research data.
- Assessment of the environmental footprint of the petroleum industry. By targeting sustainable practices, companies in petroleum can meet environmental regulations and mitigate negative effects.
- A better understanding of the changing consumer demands, behavior, and preferences.
- Anticipation and adaptation to the shift toward renewable energy sources.
- A deep analysis of competitors. It helps companies in identifying their strengths and weaknesses, as well as potential acquisitions.
- An understanding of geopolitical risks such as political instability and conflict. It aids companies in anticipating and mitigating any potential impacts and negative outcomes.
Research methods for petroleum market research
There are various research approaches that can be used for petroleum market research, including:
- Primary Research: Conducting surveys, interviews, and focus groups enables the collection of data directly from the source. This approach delivers in-depth, detailed information that can lead to a clearer understanding of consumer preferences and behaviors.
- Secondary Research: During this process, data is gathered from available publications such as industry reports, government publications, and news coverage. It is a useful method for obtaining a broad overview of the market as well as providing statistics and historical data.
- Field Research: To gather information about the industry using field research, it is necessary to visit locations such as drilling sites and refineries. By employing this method, it is possible to gain valuable insights into the day-to-day operations of the industry and s gain a better understanding of the technical aspects of the market.
Through these approaches, it is feasible to obtain both quantitative and qualitative information that allows making the appropriate decisions for both operational and investment purposes because all data is validated by experts with sufficient information from all stakeholders.
Opportunities and challenges of petroleum market research
The petroleum market research has many opportunities for the future, especially taking into account the development of new technologies. However, it will also have several challenges which involve strict regulations and the emergence of renewable energies as a major threat.
Some of the new technologies that could change the industry for the better and increase its productivity are:
- Artificial intelligence: AI offers a wide range of solutions that can help keep industry data up to date by analyzing each company’s daily, weekly, or monthly results and publishing them to the consulting firm’s clients rapidly.
- Big data analytics: Big data could provide conclusions in each report, probably on a daily or inter-daily basis, to assist in decision-making.
- Cloud computing: Data sharing through cloud-based tools allows for a much more accurate flow of information within companies, especially with their refineries and workers in the field.
- The rapidly expanding role of renewable energy sources is a key factor impacting the petroleum industry. There is a growing emphasis on environmental concerns.
- Governments and consumers are increasingly concerned about the adverse environmental effects of the petroleum industry and are pressing for stricter regulations and cleaner technologies.
- Cybersecurity is becoming increasingly important as processes become digitalized. Therefore, the industry must invest more in the digitalization of its operations to remain relevant for investors.
Major players in the petroleum industry include:
- British Petroleum
- Saudi Aramco
- Kuwait Petroleum Corp
- Qatar Petroleum
These are some of the major players in the industry and no major changes in their leadership are foreseen for the next few years. However, the increasing use of renewable energy could affect some of these companies that do not adhere to the strict regulations that now govern the sector.
Future prospect of petroleum market research
The future of the petroleum market depends on a number of factors, including technological advances, changes in consumer demand, and changes in government regulations. A major trend that is likely to continue is the shift towards cleaner, renewable energy sources, which could reduce the demand for fossil fuels. For this reason, research in the field is likely to continue to focus on ways to reduce the environmental impact of petroleum extraction. Additionally, increased efficiency in drilling and extraction technologies may lead to a decrease in the cost of petroleum production.
In any case, it is expected that petroleum market research will adapt to new technologies and with the help of AI cloud computing will be able to increase its speed and provide accurate data to clients on a continuous basis, bringing real-time information to decision-makers.
Under these circumstances, petroleum market research will also have to adapt and place more and more weight on clean energy and the strict regulations that will increasingly tighten in the sector.
SIS International offers Quantitative, Qualitative, and Strategy Research. We provide data, tools, strategies, reports and insights for decision-making. We conduct interviews, surveys, focus groups and many other Market Research methods and approaches. Contact us for your next Market Research project.
What is it Petrochemical Market Research
Petrochemicals come from refining crude oil, also known as petroleum, although some are extracted from fossil fuels like coal and natural gases. Renewable resources like sugar cane, corn, or other biomasses from agricultural and forestry wastes may also produce petrochemicals. These chemicals are commonly known as the “building blocks” of our modern-day products. They are essential in every industry that creates plastics, electronics, medicines, cosmetics, packaging, insulation, digital devices, vehicles, clothing, detergents, and other everyday items. In simple words, petrochemicals are almost in everything that people use.
Why is it Important?
Petrochemical products play a significant role in modern society and the economy. It has many uses in every industry, such as the following:
Petrochemicals are used as solvents or raw materials in making paints and coatings. Paints add color and vibrancy and protect buildings, cars, and walls from corrosion, harsh weather, and fire damage.
The chemicals used in coatings enhance the durability of infrastructures like bridges, rail tracks, and pipelines so they can last for decades. Asphalt is a waste from distilling crude oil. It’s essentially used in constructing and maintaining long-lasting roadworks.
Vehicles and Transportation
Gasoline and diesel are petrochemical fuels used by vehicles like cars, trucks, buses, planes, ships, and bicycles. These vehicles also use rubber tires made of petrochemicals, making them durable and less likely to wear or tear from constant friction.
Petrochemical also helps manufacture lightweight vehicles by using plastics and other materials, reducing fuel consumption and harmful gas emissions.
Alcohol and hand sanitizer contains polymer and glycerin, which are petrochemicals used for disinfection. Surgical and disposable gloves are made of petrochemicals like latex, vinyl, and nitrile. Many drugs also rely on petrochemicals like aspirin, penicillin, and other cancer-fighting drugs.
Some pill capsules and coatings are also made of petroleum-derived polymers. Other uses of petrochemicals in medicine include drug packaging, plastic bandages, fiberglass casts, sutures, modern hearing aids, prosthetics, and many more. Petrochemicals are also crucial in diagnostic tests. Most tests rely on plastics and petroleum.
Petrochemicals are a significant component of the electronics industry. Electronic devices like smartphones, laptops, computers, telephones, televisions, gaming systems, and many others rely heavily on petrochemicals. Plastics, the most common and simplest form of petrochemical product, are used widely as a raw material in innovating various electrical goods and electronic devices.
Today’s clothing industry relies on synthetic fibers made from petroleum-based polymers like polyester, nylon, acrylic, and leather. Petrochemical products allow the fashion industry to produce and sell garments at low cost. Clothes made from synthetic fibers are lightweight, durable, more flexible, less likely to wrinkle, and more long-lasting.
Petrochemicals are widely used in beauty and personal care items. Typical examples are paraffin wax and mineral oil, which are ingredients in cosmetics that act as moisturizers that can soften the skin. Other uses of petrochemicals include foaming agents, thickeners, solvents, and fragrances.
Most importantly, it allows items for longer shelf-life. The plastic packaging, bottles, containers, and tubes of beauty and personal care items are also made from petrochemicals.
Some food grown on the farm may have absorbed the fertilizers and pesticides made of petrochemicals. The coatings used in some vegetables are also petrochemicals. Any food with artificial food flavor and coloring may also contain petroleum-derived chemicals. Preservatives used in canned and processed foods come from petrochemical products.
The gases and fuels that run vehicles like cars, airplanes, trucks, and many others are petroleum-derived. These gases also allow people to cook meals at their home.
Key Job Titles
The petrochemical industry is continuously growing as time passes. It needs a multifaceted skillset to efficiently produce essential raw materials for various uses in the commercial sector.
The following are some common job titles in this industry:
- Petrochemical Sales Engineer
- Petrochemical Analyst
- Process Modeling Engineer
- Project Manager
- Quality Control Engineer
Why Do Businesses Need Petrochemical Market Research?
The increasing demand for petrochemicals is due to their widespread uses in various industries, with construction, pharmaceuticals, and automotive as their major drivers. Many industrial processes which mainly produce daily consumer products rely tremendously on petrochemicals. As manufacturers continue to expand and innovate, the demand for petrochemicals also increases. However, despite the increase in the market size of this industry, some factors may affect its growth.
Some consumers and developed countries have concerns regarding the harmful environmental effects of using petrochemicals in various products. Additionally, concerns have been raised regarding the sustainability of the raw materials used in producing petrochemicals, which can highly affect the market’s growth.
Businesses must research current trends, demand, and competition in the petrochemical industry. They’ll be able to identify potential risks and opportunities in the market and make strategic decisions. Market research will help businesses develop their product and adopt innovative approaches to factors threatening their growth.
Key Success Factors
Several factors will help businesses thrive in this industry. Market research will provide important information and actionable recommendations to help companies to make strategic decisions. Businesses must find solutions to access a continuous supply of crude oil and natural gas to ensure the long-term production of their products at affordable prices. They should also consider adopting an innovative approach in processes and production, practice cost management and operational efficiency, and impose strong marketing and networking to sell their products.
Businesses must also consider having a skilled workforce and strong partnerships with their suppliers and customers. With the environmental concerns regarding the production of petrochemicals, businesses must also strictly comply with the environmental and safety regulations imposed by the government and trade industry.
About Petrochemical Market Research
Market research will provide important information and analyze data for businesses to understand current trends and future insights in the petrochemical industry.
SIS International will pave the way for businesses to start and thrive in this industry by providing valuable research services. Our team has the essential tools to perform qualitative, quantitative, or strategy research through experiments, surveys, interviews, and focus groups.