Gas up: A plummeting world price of oil resulted in significant declines in industry revenue

Revenue for the Petroleum Refining industry in Canada has been volatile over the five years to 2019. Crude oil is the primary input into industry products and therefore its price is the primary driver of industry revenue. There have been minimal changes to the overall industry operating structure in recent years, although two refineries did close in the years leading up to the reporting period. Over the five years to 2024, an expanding domestic economy will prompt increased consumer spending and manufacturing more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The world price of crude oil will only grow marginally, limitting industry growth
  • The weakening dollar made imports more expensive in comparison with domestic goods
  • Industrial production will increase as the economy gains momentum
  • Industry Report - Starting a New Business Chapter

    The Petroleum Refining industry in Canada has very high barriers to entry. This industry is dominated by integrated oil and gas corporations that participate in all stages of the petroleum supply chain. Refinery infrastructure is costly, and new entrants must have considerable capital to construct refineries. High market share concentration and very high capital costs make it difficult for companies to enter this industry. Prospective entrants must also hire sufficiently skilled workers to operate refineries, further contributing to barriers.Access to pipeline infrastructure can also be difficult to obtain. Over the past five years, the lack of cross-country pipelines created a cost differential between refineries in eastern and western Canada. Ref...purchase to read more.

    Additional Insights for the Petroleum Refining Industry

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

  • Access to crude oil supplies
  • Directly operate retail and wholesale stations
  • Access to efficient and environmentally friendly technology
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Canadian effective exchange rate index in the Petroleum Refining industry impact industry performance..

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    What's in this report

    What is the Petroleum Refining Industry?

    This industry refines crude petroleum through fracking and distillation to produce gasoline, diesel fuels and other fuel oils.

    Industry Products
  • Gasoline
  • Diesel fuel
  • Fuel oils
  • Aviation fuel
  • Other petroleum products
  • Industry Activities
  • gasoline
  • diesel fuels
  • fuel oil
  • aviation fuel
  • heating oil
  • liquefied petroleum gases
  • 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
  • Canadian effective exchange rate index
  • US Gross domestic product (GDP)
  • Demand from truck transportation
  • New vehicle sales

  • Current Performance
  • Price fluctuations and industry structure
  • Rising demand
  • International trade expands
  • Infrastructure and industry participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Positive downstream demand conditions
  • Capacity and participation
  • International trade
  • Table: Petroleum Refining Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Petrochemical Manufacturing in Canada
  • Gasoline & Petroleum Bulk Stations in Canada
  • Gas Stations with Convenience Stores in Canada
  • International Airlines in Canada
  • Scheduled Air Transportation in Canada

  • Key Selling Industries
  • Electric Power Transmission in Canada
  • Gasoline & Petroleum Bulk Stations in Canada
  • Oil & Gas Pipeline Construction in Canada
  • Oil Drilling & Gas Extraction in Canada
  • Oil Pipeline Transportation in Canada

  • Products & Services
  • Gasoline
  • Diesel fuel
  • Other petroleum products
  • Fuel oils
  • Aviation fuel
  • Chart: Petroleum Refining Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic demand
  • International demand

  • Major Markets
  • Industrial
  • Exports
  • Consumers
  • Commercial
  • Aviation
  • Chart: Major Market Segmentation for the Petroleum Refining Industry

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

  • Basis of Competition
  • Internal Competition
  • External competition

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

  • Industry Globalization
    Imperial Oil Ltd., Suncor Energy Inc., Irving Oil Ltd., Shell Canada Ltd., Federated Co-operatives Limited,
  • Table: Imperial Oil Ltd. - financial performance
  • Table: Suncor Energy Inc. - financial performance
  • Table: Irving Oil Ltd. - financial performance
  • Table: Shell Canada Ltd. - financial performance
  • Table: Federated Co-operatives Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining 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 Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • World Price of Crude Oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A unit of measure for crude oil and petroleum products. One cubic metre is equal to about 6.3 barrels.
  • In Situ
  • An oil sand extraction technique where steam or solvents are injected into oil sand reserves to lower viscosity, permitting oil to flow into wells.
  • Refining Margin
  • The difference between the value of refined petroleum products and cost of crude oil inputs. Profit margin for petroleum refineries.
  • Viscosity
  • The "thickness" of crude oil and petroleum products. Low viscosity crude oil typically has lower refining costs.
  • What Our Customers Say

    Why buy this report?

    The Petroleum Refining market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

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