Fuel up: The industry has recently returned to growth, as crude oil prices have recovered

Four major oil refineries generate almost all revenue in the Petroleum Refining and Petroleum Fuel Manufacturing industry. These oil refineries process crude oil into a range of fuels and secondary products that are then sold to downstream markets. Crude oil purchase costs dominate the industry's cost structure. The cost of this input, in conjunction with exchange rate movements, contributes to significant revenue volatility, as world crude oil prices are typically passed on to downstream markets.Significant declines in refinery output and crude oil prices have negatively affected the industry over the past five years, with industry revenue expected to decline at an annualised 15.6% over the five years through 2017-18, to $16.5 billion...read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 13-18
-15.6%
Forecast Growth 18-23
Profit
Employment
2,165
Businesses
132

Industry Threats & Opportunities

  • Declines in refinery output and crude oil prices have negatively affected the industry
  • Major players are converting refineries into import terminals, increasing import penetration
  • The price of crude oil is projected to increase as multiple producers reduce their supply
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in a decline phase of its life cycle. Four major refineries have closed in the past five years, leading the production capacity of the industry to decline by over 40%. Production volumes have continued to decline as petroleum refineries have failed to keep pace with newer and larger facilities in the Asia-Pacific region. Some major players have chosen to renew their refineries supplying Australia in neighbouring countries, converting older, domestic plant to fuel import terminals. The lower production costs and technological efficiencies of international refineries have resulted in the contraction of the Australian industry. Growth has been captured by the related Petroleum Product Wholesaling industry, where major players are also dominant...purchase to read more.

    Additional Insights for the Petroleum Refining and Petroleum Fuel Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining and Petroleum Fuel Manufacturing Industry are

  • Ability to alter mix of inputs in line with cost
  • Downstream ownership links
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and US dollars per Australian dollar in the Petroleum Refining and Petroleum Fuel Manufacturing industry impact industry performance..

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    What's in this report

    What is the Petroleum Refining and Petroleum Fuel Manufacturing Industry?

    Industry companies primarily refine crude oil or condensate (a light form of oil) to produce petrol, fuel oil, aviation fuel, grease base stock, petroleum gases and other petroleum products. Companies also blend materials into petroleum fuels and manufacture fuels from the liquefaction of petroleum gases. These products are then marketed by wholesalers and retailers, which may be owned by firms that operate the refineries.

    Industry Products
  • Automotive petroleum
  • Diesel
  • Aviation turbine fuel
  • Other refined petroleum products
  • Industry Activities
  • Automotive petroleum
  • Automotive and industrial diesel
  • Aviation fuel
  • Gas oil, fuel oil and heating oil
  • Jet fuel
  • Kerosene
  • LPG (in conjunction with petroleum refining)
  • Motor spirit
  • Oil or grease base stock
  • Petroleum refining and blending
  • 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
  • US dollars per Australian dollar
  • Aircraft kilometres flown
  • Electricity service price
  • Number of motor vehicles

  • Current Performance
  • Crude oil prices
  • Strong import competition
  • Domestic challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Production and performance
  • Supply chain changes
  • Profit and employment
  • Table: Petroleum Refining and Petroleum Fuel Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining and Petroleum Fuel Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Road and Bridge Construction
  • Petroleum Product Wholesaling
  • Fuel Retailing

  • Key Selling Industries
  • Electricity Retailing
  • Engineering Consulting
  • Oil and Gas Extraction
  • Port Operators
  • Water Freight Transport

  • Products & Services
  • Automotive petroleum
  • Diesel
  • Aviation turbine fuel
  • Other refined petroleum products
  • Chart: Petroleum Refining and Petroleum Fuel Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Petroleum and diesel wholesalers
  • Petroleum and diesel retailers
  • Aviation and other fuel wholesalers
  • Export markets
  • Chart: Major Market Segmentation for the Petroleum Refining and Petroleum Fuel Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum Refining and Petroleum Fuel Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Refining and Petroleum Fuel Manufacturing Industry

  • Industry Globalization
    BP Australia Investments Pty Ltd, Viva Energy Holding Pty Ltd, Caltex Australia Limited, ExxonMobil Australia Pty Ltd,
  • Table: BP Australia Investments Pty Ltd - financial performance
  • Table: Viva Energy Holding Pty Ltd - financial performance
  • Table: Caltex Australia Limited - financial performance
  • Table: ExxonMobil Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining and Petroleum Fuel Manufacturing 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 and Petroleum Fuel Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Refinery Output (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Catalytic Hydrocracking
  • A refining process that uses hydrogen and catalysts under pressure to convert residual oil products from conventional refining into lighter fuels such as petrol, aviation gasoline and diesel.
  • Fractional Distillation
  • The process of separating a mixture into fractions. The parts are separated according to boiling point. Upon heating, the fractions vaporise at a desired temperature and are individually collected.
  • Kerosene
  • Most jet fuels are based off this fraction produced from fractional distillation.
  • Naphtha
  • A broad classification of the lighter fractions produced from fractional distillation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Petroleum Refining and Petroleum Fuel Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 and Petroleum Fuel Manufacturing:
    • 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 and Petroleum Fuel Manufacturing 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 and Petroleum Fuel Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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