North America Oil Storage Market Trends and Growth Outlook to 2032

 

The North America oil storage market is evolving swiftly, driven by supply-demand imbalances, growing export volumes, and strategic infrastructure upgrades. Long viewed as passive infrastructure between extraction and refining, oil storage facilities in the U.S. and Canada now serve a dynamic role in balancing the region’s energy economy. As of 2025, the North America oil storage market is valued at US$ 816.0 million and is projected to reach US$ 1,118.0 million by 2032, growing at a CAGR of 4.6% over the forecast period.

From accommodating production surges in shale basins to supporting crude exports from the Gulf Coast, storage facilities have transformed into strategic assets. Let's dive deep into the market dynamics, challenges, opportunities, and key trends shaping the future of oil storage in North America.

Market Dynamics: Drivers, Restraints, and Opportunities

Key Driver: Volatile Output and Refining Gaps Fuel Storage Demand

North America’s oil production, especially in shale-rich basins like Permian and Bakken, is highly sensitive to market pricing and rig activity. In 2025, U.S. crude production fluctuated between 12.8 and 13.2 million barrels per day (bpd), creating unpredictable supply inflows. These fluctuations often outpace downstream demand and refinery processing capacity, creating the need for intermediate storage.

Refinery disruptions—such as maintenance outages—also exacerbate storage demand. For instance, Gulf Coast storage utilization surged by 11% in just two weeks in March 2025 due to a temporary dip in refining capacity. Simultaneously, gasoline demand has remained erratic, impacted by uneven EV adoption and macroeconomic uncertainty. These mismatches intensify the need for commercial tankage to balance supply chains for crude and refined products.

Key Restraint: Pipeline Saturation and Delayed Infrastructure

Despite major investments, pipeline infrastructure continues to lag behind production growth. In the Permian Basin, crude oil output in early 2025 exceeded 6.3 million bpd—stretching the region’s takeaway capacity to its limits. Consequently, local storage terminals saw utilization rates nearing 90%, forcing producers to lease short-term storage at elevated costs.

In Canada, even though the Trans Mountain pipeline expansion became operational in May 2024, delays in feeder connectivity and terminal upgrades slowed its impact. This backlog led to overstocking at major hubs like Hardisty and Edmonton, squeezing local capacity.

Opportunity: Crude Export Growth and SPR Rebuilds Drive Demand

Government initiatives in both the U.S. and Canada are indirectly boosting oil storage demand. In the U.S., the Department of Energy is gradually replenishing the Strategic Petroleum Reserve (SPR) after historic drawdowns, targeting at least 450 million barrels by 2026. These efforts are fueling demand for both federally owned and leased commercial storage.

Meanwhile, U.S. crude exports continue to rise. The Port of Corpus Christi alone exported over 2.3 million bpd in Q1 2025, necessitating significant investments in marine terminals and near-dock storage facilities. Operators such as Moda Midstream and Buckeye Partners have added more than 10 million barrels of storage capacity to support this growth.

Category-wise Analysis: Products and Applications

By Product Type: Floating Roof Tanks Lead the Market

The market segments based on product types include open top, fixed roof, and floating roof storage tanks.

  • Floating Roof Tanks are projected to hold a 33.7% share in 2025. These tanks are designed to reduce evaporative losses by minimizing vapor space, making them ideal for volatile crude and gasoline.

  • Fixed Roof Tanks, on the other hand, are cost-effective and best suited for storing low-volatility fuels like lubricants and fuel oil. Smaller terminals and inland facilities often favor this design for budget-friendly operations.

By Application: Crude Oil Dominates with 35.1% Share

On an application basis, the market includes crude oil, gasoline, middle distillates, and aviation fuel.

  • Crude oil remains the dominant segment due to its central role in North America’s upstream and midstream value chain. The region produces more than 18 million bpd, requiring substantial buffer and transit storage.

  • Gasoline is expected to grow robustly through 2032, supported by North America’s heavy reliance on road transport. With the U.S. consuming around 8.9 million bpd of gasoline in early 2025, storage helps manage seasonal and distribution-related imbalances.

Regional Trends: U.S. and Canada Oil Storage Markets

United States: Tight Inventories and Strategic Shifts

As of mid-2025, U.S. commercial crude inventories are reported at around 436 million barrels, nearing the lower end of the five-year seasonal average. Inventory drawdowns have been driven by a rise in refinery activity and sluggish builds.

Cushing, Oklahoma—the delivery hub for WTI futures—has experienced inventory declines below 20 million barrels, threatening operational minimums and contributing to price volatility. Additionally, the SPR is undergoing gradual replenishment following major withdrawals in 2022–2023, further absorbing available capacity in both federal and commercial tanks.

Canada: Throughput Gains over On-site Storage

Canada’s oil storage landscape has been reshaped by infrastructure upgrades. The Trans Mountain expansion, operational since May 2024, has nearly tripled pipeline capacity to 890,000 bpd, enabling Alberta’s oil to reach export markets more efficiently.

By the end of 2024, total Canadian petroleum stocks were around 190.9 million barrels, slightly down from the prior year. However, the rise in crude exports—reaching an all-time high of 4.0 million bpd to the U.S.—has shifted the focus from stockpiling to maximizing throughput. Unlike the U.S., Canada does not operate a strategic reserve, and instead relies on commercial tanks and salt caverns in Alberta, which collectively hold around 30 million barrels.

Competitive Landscape and Key Developments

North America’s oil storage market is moderately consolidated, with both established firms and new entrants investing in strategic locations. Major players include:

  • CST Industries, Inc.

  • ERGIL

  • Superior Tank Co., Inc.

  • Royal Vopak N.V.

  • NOV Inc.

  • Shawcor Ltd

  • Roth Industries GmbH

  • T BAILEY, LLC

These companies have storage facilities in critical zones like the Gulf Coast, Permian Basin, and Cushing, offering services such as blending, export handling, and arbitrage facilitation.

Key Industry Developments

  • April 2025: The U.S. DOE awarded a US$ 1.4 billion contract to Strategic Storage Partners LLC for managing the SPR over five years, underlining the federal focus on oil reserve rebuilding.

  • January 2025: The Government of Alberta partnered with Enbridge to evaluate pipeline and storage expansion opportunities across Enbridge’s 29,000-kilometer network. The initiative aims to unlock new markets for Alberta oil.

Conclusion: Strategic Role of Oil Storage in North America’s Energy Future

As North America navigates a complex landscape of energy transition, market volatility, and geopolitical dynamics, oil storage infrastructure is taking center stage. From enabling crude exports to serving as a shock absorber during refinery outages, storage terminals have become vital to supply chain resilience.

With continued growth in shale production, rising export volumes, and government-driven strategic stockpiling, the North America oil storage market is poised for steady expansion. The next decade will likely witness a shift towards more flexible, environmentally compliant, and strategically located storage solutions, ensuring that the region remains well-positioned in global energy markets.

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