According to the latest market study released by Technavio, the global fuels market is expected to grow at a sluggish CAGR of approximately 2% during the forecast period.
This research report titled ‘Global Fuels Market 2016 - 2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. The market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
Gasoline is the chief product refined from crude oil. In 2015, gasoline accounted for approximately 68% of the energy used for transportation, 45% of all petroleum consumption, and 15% of the total energy consumption in the US. “Gasoline is mostly used in light duty vehicles especially sports vehicles, small trucks, boats, small aircraft, and farm, construction, and landscaping equipment,” said Chandrakumar Badala Jaganathan, a Lead Analyst at Technavio for plastics, polymers, and elastomers research.
Gasoline is highly flammable, toxic, and contributes significantly to air pollution. These factors can affect the consumption of gasoline globally. The 1973 Clean Air Act of the US intends to reduce pollution from gasoline use by demanding the use of less polluting engines and fuels, among other equipment.
Diesel is used in trains, freight trucks, buses, boats, and construction vehicles and other equipment. It also is used in power generators in large buildings, institutional facilities, industrial facilities, hospitals, and electric utilities.
Before 2015, diesel fuel sold in the US had high concentrations of sulfur, an air pollutant. The US Environmental Protection Agency has mandated many requirements for reducing sulfur concentration in diesel.
“The construction industry is highly dependent on the power provided by diesel power generators. Diesel engines can be used to perform heavy work such as digging foundations, lifting steel beams, drilling wells, paving roads, trenches, and moving soil securely and efficiently in construction applications,” said Chandrakumar.
The cost of producing and delivering diesel fuel comprises processing, crude oil, marketing and distribution, and retail station operation costs. The retail pump price reveals the costs and the profits of the marketers, refiners, distributors, and retail station owners.
Heavy fuel oil
Heavy fuel oil is a highly viscous concentrate obtained as a residue from crude oil refining. It is extensively used in marine engines as it is readily available and cheaper than other fuels. The fuel is stored at a high temperature before use and it contains many impurities. The combustion product releases high concentrations of compounds such as NOX, SOX, and CO2.
The market for these oils increased significantly due to the robust growth in international shipping, which covers over 90% of intercontinental trade by volume every year.
Jet fuel and kerosene
Aviation engines require fuels with excellent combustion properties and high energy content. These jet fuel grades are used for both commercial and military aviation applications. The kerosene fuels used currently in commercial aviation applications are JET A-1, JET A, JET B, and TS -1 while military aviation fuels are JP-4, JP-5, and JP-8. Each of these jet fuels follows a different specification standard. In addition to these fuels, fuels specially formulated for small piston powered aircraft also comprise a small consumption share.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/27062016/growing-urbanisation-to-drive-global-fuels-market-through-2020-3583/