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Top Facts and Trends in the U.S. Petroleum and Coal Products Industry

Posted by IndustrySelect on Friday, May 17, 2024

 Key Facts & Trends in the U.S Petroleum and Coal Products Industry

Reach 2,300 companies and 6,900 executives with the Petroleum and Coal Products Industrial Database from MNI. 

Fossil fuel demand will hit record levels in 2024 due to heavy usage in Asia. Despite environmental concerns, coal usage is still rising as a result of African dependence. However, the petroleum and coal products industry faces challenges from sustainable energy sources and political pressures. As a marketing or sales professional seeking business, your work is cut out for you.

The larger companies, such as Chevron and Exxon, are attempting to acquire new assets to spur future growth. Service vendors may be incorporated into their former customers, leading to fewer prospecting fields. Petroleum companies also struggle with losing skilled employees and continuing labor shortages. However, advances in technology will help overcome these obstacles. The industry's statistics show its promise as a sales target.

Key Trends in the U.S. Petroleum and Coal Products Industry

According to MNI, compiler and publisher of the industrial data that powers IndustrySelect, there are currently 2,416 petroleum and coal products manufacturers provide 194,274 jobs. This is up 2.88% over the previous year. The total reported annual average sales are 1.4 trillion. These companies have an international distribution of 18%, compared with 29% for manufacturing as a whole. Raw material importation is 11%, equal to that for total U.S. manufacturing.

A larger percentage of these companies are publicly owned than for all of U.S. manufacturing, 25% versus 5%. Women own a smaller percentage, 1%, as opposed to 2% for manufacturing as a whole. Minority ownership for petroleum and coal product companies stands at zero, as opposed to 1% for manufacturing as a whole.

As you might expect from the locations of fossil fuel mining, companies selling petroleum and coal products concentrate in the South at 40%. You can, however, find sales opportunities countrywide, with 28% of companies in the Midwest, 17% in the Northeast and 14% in the West.

Sub-Sectors in the Petroleum and Coal Products Industry

Depending on your line, concentrating your efforts on a particular subindustry may yield your best results. Three examples of subindustries are:

● Petroleum Products.

● Asphalt Paving and Roofing Materials.

● Miscellaneous Petroleum and Coal Products.

Petroleum Products

Even as a subindustry, this sector covers a wide array of products. They include:

● Transportation fuels.
● Fuel oils.
● Road oils.
● Feedstocks for plastic manufacture.

The majority of petroleum in this subindustry, 44%, has been formulated into finished gasoline, including added ethanol. Heating oil and diesel have consumed 20% of petroleum output. Jet fuel manufacturers used 8%. The rest went into a variety of other products, including hydrocarbon gas liquids. This subindustry has many niches that require supplies and services.

Asphalt Paving and Roofing Materials

The price index for this subindustry shows an appreciable rise. In light of asphalt paving's considerable advantages, its popularity makes sense. These products are:

● 100% recyclable.
● Durable.
● Useful for noise reduction.
● Cost-efficient.
● Quickly installed.
● Safe.
● Effective for water drainage.

Various types of asphalt require different temperature ranges and related equipment. If you sell equipment, this could be a promising market.

The asphalt shingles market also offers growth. The asphalt sector hopes that new developments in the field will help them compete with other roofing materials. You could open doors with creative ideas for competing with other roofing materials. Shingle companies may also need support to comply with regulatory changes.

Miscellaneous Petroleum and Coal Products

Some of the many miscellaneous petroleum products include:

● Petrolatum lube.
● Absorption oils.
● Ram-jet fuel.
● Rocket fuel.
● Synthetic natural gas feedstocks.
● Specialty oils.

The diversity of offerings coincides with the need for a multiplicity of products and services.

While petroleum and coal products cover a wide range, many trends apply to the industry as a whole.

The Future of Petroleum and Coal Products in the U.S.

In response to increasing regulation, petroleum and coal companies are attempting to reduce their carbon footprints. New methane rules are coming out in 2024. Compliance will require new emissions control methods. Environmental and regulatory savvy providers have a leg up on offering their services. The market looks promising for carbon capture equipment. Emissions-lowering devices and consulting services may also see rising demand.

To challenge OPEC's influence, U.S. production must rise. To control costs, both foreign and domestic customers may reevaluate their purchases. You can expect new alliances to grow with a resulting shift in productive contacts.

The Inflation Reduction Act may allow oil drillers to get permits more quickly. Over time, this could boost the availability of raw materials for petroleum product producers. Oil producers plan to focus on operational efficiency. Petroleum producers intend to employ robotics and automation to speed up operations and compensate for the labor shortage. AI-powered technology is part of plans to speed up operations in many venues. An increase in oil availability allows petroleum products manufacturers to ramp up production, increasing their requirements for equipment and labor.

Petroleum and coal companies are diversifying to renewable energy sources. This shift creates a need for design and engineering services. Labor and material suppliers may also find an open door. As the shift to renewable sources continues, new marketing opportunities should grow.

These companies are also looking at forming more public-private partnerships. You may find willing prospects for your services if you offer expertise in facilitating these relationships.

his industry has long depended on apprenticeships to provide qualified labor. This system is breaking down. The companies involved are attempting to fill the gap with technology, but the adjustment is far from complete. Unfortunately, this can lead to unsafe working environments. The market exists for products and services, particularly employee training, to mitigate risks. Virtual reality as a training aid could be a promising offering.

The manufacturing of petroleum-based products is a complex process requiring considerable monitoring. Supervisory control and data acquisition (SCADA) and data systems offer the controls necessary for safer operation. The use of cloud computing is increasing. This industry is a sales target if you sell services or equipment related to data handling and storage.

Making Contact With U.S. Petroleum & Coal Products Companies

As companies merge and change focus, the contacts you need will change with them. Current information is vital to successful prospecting. IndustrySelect can help. Powered by a hardworking research staff,  its industrial contact data, including detailed company profiles and executive emails, is constantly updated. You will reach the decision-makers you need to seal a deal. Try a free demo today, loaded with 500 real company profiles!


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