North America Oil & Gas Storage Tank Market By Product (Crude Oil, Liquefied Natural Gas (LNG), Diesel, Gasoline, Kerosene, Liquefied Petroleum Gas (LPG), Others), By Material (Steel, Carbon Steel, Fiberglass-reinforced Plastic), By Country, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

The North America Oil & Gas Storage Tank Market was valued at USD 4.35 Billion in 2024 and is expected to reach USD 5.01 Billion by 2030 with a CAGR of 2.38% during the forecast period. The North America Oil & Gas Storage Tank market refers to the industry segment focused on the manufacturing, distribution, and utilization of large containers designed for storing crude oil, refined petroleum products, natural gas, and other related substances.

These tanks play a crucial role in the midstream and downstream operations of the oil and gas industry by ensuring a steady and safe supply chain from extraction sites to refineries and finally to end users. Storage tanks are used in various facilities including terminals, refineries, and production sites, and they come in different types such as fixed roof, floating roof, and spherical tanks, depending on the nature of the stored material and operational requirements. The market is witnessing significant growth due to several key factors. One major driver is the rising energy demand across industrial, transportation, and residential sectors, which necessitates increased storage capacity to manage supply effectively.

In addition, the expansion of oil and gas exploration and production activities, particularly with the resurgence of shale gas operations in the U.S., has created a greater need for storage infrastructure. Technological advancements in tank materials, safety systems, and monitoring technologies are also enhancing operational efficiency and compliance with strict environmental regulations, further encouraging investment in modern storage solutions. The growing emphasis on strategic petroleum reserves (SPR) and energy security, especially amid global geopolitical uncertainties, has prompted government and private sector initiatives to increase storage capacities.

Fluctuating oil prices have led companies to adopt storage as a strategy for inventory management and price hedging. Environmental concerns and regulatory policies are also pushing the industry toward the development of more sustainable and corrosion-resistant tanks, boosting innovation in the sector. As the North American energy landscape continues to evolve with an increased focus on infrastructure resilience, digitalization, and renewable integration, the oil and gas storage tank market is expected to rise steadily, playing a vital role in supporting energy supply chains, optimizing logistics, and ensuring market stability.

Key Market Drivers

Expanding Crude Oil Production Activities Across the United States and Canada

The North America oil and gas storage tank market is significantly driven by the rising crude oil production activities across key regions in the United States and Canada. This growth is a direct consequence of technological advancements in hydraulic fracturing and horizontal drilling techniques that have unlocked vast shale reserves in formations such as the Permian Basin, Bakken, and Eagle Ford. These technological innovations have improved well productivity and reduced the breakeven cost of extraction, enabling operators to maintain and even increase output levels in the face of market volatility. As oil production surges, the requirement for robust and scalable storage infrastructure has become more critical to managing supply efficiently, mitigating bottlenecks, and enhancing operational flexibility. Storage tanks play a vital role in accommodating crude oil during peak production and as a buffer before transportation to refineries or export terminals.

Producers and midstream operators are investing in new tank farms or expanding existing facilities to support increasing volumes, especially in landlocked regions where pipeline infrastructure development lags behind production growth. In Canada, the development of oil sands and the associated increase in bitumen extraction have further amplified the need for customized storage solutions designed to handle heavier crude grades. The market is also witnessing a growing preference for above-ground storage tanks due to easier inspection and lower environmental risk compared to underground tanks. Rising geopolitical dynamics have fueled the need for strategic petroleum reserves, pushing both public and private entities to boost their storage capacities. All these developments collectively underscore the pivotal role of rising crude oil production in shaping storage tank demand across North America, setting the stage for continued capital investment in this segment.

According to the United States Energy Information Administration, crude oil production in the United States reached approximately 13.3 million barrels per day in December 2023, marking one of the highest monthly production levels in history and reinforcing the need for additional storage infrastructure to accommodate this growth.

Strategic Government Initiatives and Emergency Reserve Programs

Government policies and strategic petroleum reserve initiatives across North America are playing an increasingly influential role in boosting the demand for oil and gas storage tanks. Federal mandates to maintain emergency reserves for energy security, along with efforts to stabilize domestic energy markets during geopolitical disruptions, have made storage capacity expansion a top priority for both governments and industry stakeholders. In the United States, the Strategic Petroleum Reserve remains the world’s largest supply of emergency crude oil, and plans for its modernization and expansion continue to stimulate large-scale storage tank development.

Canadian provincial and federal governments have emphasized the creation of buffer inventories to mitigate the impacts of pipeline delays and international supply chain interruptions. These initiatives often result in the commissioning of new above-ground storage facilities, with a focus on long-term containment, environmental safety, and regulatory compliance. Furthermore, policy-driven incentives such as tax benefits, low-interest infrastructure funding, and streamlined permitting processes are being utilized to encourage private sector participation in national reserve programs. This synergy between public interest and private investment enhances resilience across the oil and gas supply chain while acting as a consistent growth vector for the regional storage tank market. The growing recognition of storage as a strategic asset in national energy planning is pushing operators to adopt forward-looking infrastructure strategies, including the integration of modular and scalable tank designs that can adapt to changing volume requirements and emergency protocols.

As of early 2024, the United States Strategic Petroleum Reserve held approximately 370 million barrels of crude oil, prompting infrastructure upgrades and tank refurbishments to meet its long-term capacity target of around 714 million barrels during full restoration cycles.

Growth in Refining and Midstream Infrastructure Development

The continued expansion of refining and midstream transportation infrastructure in North America has created a parallel demand surge for oil and gas storage tanks, as these components are intrinsically linked in the hydrocarbon value chain. Refining operations require substantial feedstock inventories and finished product storage to optimize batch processing cycles, accommodate demand fluctuations, and manage unplanned operational downtimes. As major refining hubs along the Gulf Coast and inland regions increase their processing capacity, new tank farms are being developed on-site and in adjacent logistics zones. Midstream operators, meanwhile, are building pipeline networks and rail-loading terminals that necessitate significant interim storage capacity at origin, destination, and strategic junction points.

Storage tanks provide the essential flexibility needed to balance the timing mismatches between upstream supply and downstream processing or distribution. The rise of terminal blending operations and the trend of exporting refined fuels and liquefied petroleum gases from North American ports have further heightened the importance of tank farms in both domestic and international energy logistics. Many refiners are also investing in digitalized tank monitoring systems and corrosion-resistant materials to increase safety, operational visibility, and lifespan of storage assets. These investments reflect a long-term strategic vision that sees storage not only as a utility function but also as a competitive differentiator in optimizing supply chains. As a result, the oil and gas storage tank market is witnessing sustained momentum through infrastructure-led demand.

In 2023, United States refinery operable capacity stood at approximately 18.1 million barrels per calendar day, according to data from the United States Energy Information Administration, underpinning a continued demand for integrated storage tank systems across refining networks.

Increased Export Activity of Crude Oil and Refined Products

North America's transformation into a net energy exporter has significantly altered the regional dynamics of oil and gas storage, driving the development of large-scale tank farms to support growing international trade flows. The export of crude oil, liquefied petroleum gases, and refined products such as gasoline, diesel, and jet fuel has created demand for staging areas near major ports and inland distribution hubs, where storage tanks act as critical logistics nodes for blending, quality control, and shipping readiness. The Gulf Coast region, in particular, has emerged as a global energy gateway, necessitating sophisticated terminal infrastructure with high-capacity above-ground storage tanks. Export-oriented tank farms are often built with advanced vapor recovery systems, heating elements for heavy crude, and real-time inventory management technologies to meet international safety and environmental compliance standards.

Shifting global supply dynamics, such as reductions in output from certain member countries of the Organization of the Petroleum Exporting Countries and increased demand from emerging Asian economies, have positioned North America as a reliable supplier. This has intensified the need for scalable, modular storage solutions that can adapt to volatile shipping schedules and multi-grade handling. From a market perspective, the increase in exports directly enhances tank utilization rates and drives continuous investment in new capacity to handle growing outbound volumes and turnaround requirements. As international demand strengthens, the storage tank market in North America is becoming increasingly export-oriented and strategically vital for global energy security.

United States crude oil exports averaged approximately 4.0 million barrels per day in 2023, with refined product exports reaching nearly 6.0 million barrels per day, illustrating a robust trade-driven need for expanded oil and gas storage capacity at export terminals.

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Key Market Challenges

Aging Infrastructure and Risk of Structural Failure

One of the most pressing challenges facing the North America oil and gas storage tank market is the widespread issue of aging infrastructure and the increasing risk of structural failure associated with older storage systems. A significant portion of the storage tank installations across the United States and Canada were constructed several decades ago, many during the mid-twentieth century, and are now operating beyond their originally intended design lifespans. These legacy tanks, which were often built using outdated construction materials and engineering standards, are now more susceptible to corrosion, material fatigue, and stress-induced cracking, particularly in regions with high humidity, variable temperature cycles, or corrosive soil conditions. In addition to the physical degradation of tank materials, the lack of real-time monitoring systems in older installations exacerbates the risk of undetected leaks, overpressure incidents, and hazardous material releases. While regular inspections are mandated by regulatory authorities, the scope and frequency of these assessments often fall short of the technical requirements needed to maintain safe operations, especially in remote or less accessible facilities.

Many of these aging tanks were not originally designed to store the diverse range of petroleum products and chemicals now demanded by modern oil and gas operations, such as heavier crude blends, volatile organic compounds, and renewable fuel additives. This misalignment between historical tank design and current usage introduces complex engineering and compliance challenges that operators must address through costly retrofits or full-scale replacements. The financial burden associated with modernizing or decommissioning aging infrastructure is substantial, particularly for smaller operators with limited capital reserves.

Operational downtime required for maintenance, tank replacement, or regulatory compliance upgrades negatively impacts throughput and revenue. The increasing number of environmental incidents related to tank failures has also heightened public and regulatory scrutiny, leading to greater enforcement of safety and environmental standards. Consequently, operators are caught between the high costs of infrastructure investment and the risks associated with continuing to operate outdated tanks. The longer this issue is deferred, the greater the risk becomes for catastrophic failures that can result in not only environmental damage and reputational harm, but also severe legal liabilities and financial penalties. This challenge is structural in nature and represents a foundational threat to the long-term stability and credibility of the oil and gas storage tank market in North America.

Stringent Environmental Regulations and Rising Compliance Costs

The oil and gas storage tank market in North America is increasingly constrained by the growing complexity and financial burden of environmental compliance, which has emerged as a major challenge for operators across the region. Federal and regional regulatory agencies, such as the United States Environmental Protection Agency and Environment and Climate Change Canada, have implemented a progressively stricter framework of environmental policies aimed at minimizing the ecological footprint of storage operations. These policies encompass a wide range of mandates including emissions controls, leak detection requirements, secondary containment systems, and operational best practices designed to reduce the risk of spills, groundwater contamination, and air pollution. While these regulatory advancements serve an essential public and environmental interest, they impose significant cost and operational burdens on tank owners and operators, particularly those managing older or smaller-scale facilities. The need to install vapor recovery units, corrosion-resistant materials, high-integrity containment barriers, and advanced monitoring systems entails substantial capital expenditure, often requiring total system overhauls rather than incremental upgrades.

The regulatory landscape is not static; it continues to evolve as environmental science advances and public awareness of industrial pollution grows, requiring operators to continuously adapt and reinvest to remain compliant. The administrative complexity of these regulations, combined with high non-compliance penalties, adds to the operational stress for many companies. Moreover, the lack of regulatory harmonization across states and provinces creates an uneven compliance environment, particularly for multi-jurisdictional operators that must meet conflicting or overlapping mandates. Delays in obtaining environmental permits for new tank farms or retrofitting existing ones also hinder project timelines and raise the cost of capital. Insurance providers are also responding to environmental risks by tightening coverage terms and increasing premiums for tank operators, thereby elevating the overall cost of doing business. As environmental justice movements and community-led legal actions become more prevalent, especially in proximity to vulnerable or marginalized communities, companies must also consider the reputational risk of being perceived as environmentally negligent. Therefore, while compliance is non-negotiable, the sheer scale of investment and administrative complexity required to meet escalating environmental standards poses a significant and enduring challenge for the oil and gas storage tank market in North America.

Volatility in Crude Oil Prices and Its Impact on Storage Investment

The inherently volatile nature of global crude oil pricing remains a critical challenge for the North America oil and gas storage tank market, primarily because it introduces significant uncertainty into capital planning, infrastructure investment, and operational strategy. Crude oil prices are influenced by a complex set of geopolitical, economic, and supply-demand factors, including production decisions made by the Organization of the Petroleum Exporting Countries, global economic growth trends, conflict zones affecting supply chains, and technological advancements that disrupt consumption patterns. When oil prices plummet, as witnessed during global economic downturns or pandemic-induced demand collapses, upstream producers reduce output and delay capital expenditures, leading to a corresponding contraction in storage infrastructure investment. Conversely, during price surges, sudden increases in production can overwhelm existing storage capacity, especially in landlocked production regions such as West Texas or Western Canada where transportation infrastructure may not scale at the same pace. This cyclical investment behavior creates periods of both overcapacity and undercapacity in the storage market, reducing investor confidence and complicating long-term planning for infrastructure developers. Storage operators must also manage fluctuating utilization rates that directly impact profitability, as lower demand for storage services during oil price slumps translates to reduced revenue and operational efficiency.

Financial markets tend to tighten during periods of oil price instability, limiting access to low-cost financing for storage infrastructure projects, particularly for independent developers and midstream startups. The uncertainty surrounding return on investment discourages proactive capacity expansion and innovation in tank design and automation, thereby stifling the market’s ability to evolve with changing industry needs. Market volatility also influences regulatory attitudes, as policymakers may delay or accelerate legislation in response to price-driven public sentiment, further complicating the operational environment. Finally, price instability erodes trust between stakeholders across the oil and gas value chain, making it more difficult to secure long-term storage contracts, joint ventures, and public-private partnerships. In such an unpredictable financial climate, only the most resilient and well-capitalized operators can afford to invest in new or upgraded storage tank infrastructure, leaving the broader market exposed to capacity shortages, price spikes in storage fees, and potential disruptions to regional energy security.

Key Market Trends

Integration of Advanced Digital Monitoring and Automation Systems

A prominent trend gaining momentum in the North America oil and gas storage tank market is the widespread integration of advanced digital monitoring and automation systems across both new and existing storage facilities. Operators are increasingly investing in technologies such as remote telemetry units, automated leak detection sensors, smart pressure control systems, and cloud-based inventory management platforms to enhance operational efficiency, safety, and regulatory compliance. The use of Internet of Things-enabled devices allows real-time data collection and predictive analytics, enabling early identification of mechanical issues, material degradation, or environmental anomalies. These smart systems minimize human error, reduce inspection times, and allow for remote facility management, especially in geographically dispersed tank farms.

Digital twins and augmented reality tools are being adopted for virtual inspections and maintenance planning, streamlining asset management and lifecycle forecasting. This shift toward digitalization is being accelerated by growing regulatory expectations for operational transparency and the rising need for risk mitigation amid increasing climate-related disruptions. Operators are also leveraging automation to optimize filling and emptying cycles, thereby reducing idle times and enhancing throughput. As operational cost pressures intensify and environmental compliance standards become more rigorous, the deployment of digital solutions is no longer a luxury but a strategic necessity for maintaining competitive advantage in the storage tank segment.

Increasing Adoption of Modular and Scalable Storage Tank Designs

The North America oil and gas storage tank market is witnessing a growing trend toward the adoption of modular and scalable tank designs, driven by the industry’s need for flexible infrastructure that can rapidly respond to shifting supply-demand dynamics and project-specific requirements. Modular tanks are pre-engineered units that can be manufactured off-site and assembled quickly at the installation location, reducing construction time, labor costs, and environmental disruption. This design approach is particularly advantageous in remote or challenging geographies, where conventional on-site fabrication may be logistically complex or financially unfeasible.

Scalability is another key advantage of modular tanks, allowing operators to expand storage capacity incrementally based on production levels, transport bottlenecks, or trading opportunities without committing to large-scale capital projects upfront. These tanks can be easily disassembled, relocated, or repurposed, offering long-term operational flexibility in a volatile energy market. Modular tanks are increasingly designed with multi-product handling capabilities, enabling storage of various grades of crude oil, refined fuels, or renewable energy blends. As the energy transition advances and supply chains become more dynamic, storage infrastructure that offers speed, adaptability, and cost efficiency will be critical to market responsiveness. The growing preference for modular solutions is also aligned with sustainability goals, as factory-controlled fabrication environments tend to produce less waste and have a smaller carbon footprint compared to traditional on-site construction methods.

Emphasis on Sustainability and Low-Emission Storage Solutions

Sustainability has emerged as a critical trend influencing the design, construction, and operation of oil and gas storage tanks in the North America market. Regulatory pressure, corporate environmental, social, and governance commitments, and public expectations have converged to push the industry toward low-emission storage infrastructure. Operators are increasingly adopting green construction practices, including the use of low-carbon materials, renewable energy-powered equipment, and designs that minimize vapor loss and thermal inefficiencies. Storage tanks are being fitted with advanced vapor recovery units, floating roofs, and insulation systems that reduce greenhouse gas emissions and volatile organic compound releases.

Operators are exploring the integration of renewable energy technologies, such as solar-powered sensors and pump systems, to reduce reliance on conventional energy sources. The sustainability trend is also reflected in asset lifecycle planning, with a growing focus on decommissioning non-compliant tanks and retrofitting older units with eco-friendly technologies. This transition is not only regulatory-driven but also financially strategic, as environmentally responsible storage operations are increasingly favored by institutional investors, insurers, and long-term stakeholders. The shift toward sustainability is expected to further accelerate as the market prepares for future integration of alternative fuels, carbon capture liquids, and hydrogen storage, all of which require infrastructure that aligns with next-generation environmental and safety standards.

Segmental Insights

Product Insights

Crude Oil segment dominated in the North America Oil & Gas Storage Tank Market in 2024 and maintain its leadership throughout the forecast period. This dominance is primarily attributed to the extensive production activities across key regions such as the Permian Basin in the United States and the oil sands of Alberta in Canada, which generate substantial volumes of crude oil requiring efficient and large-scale storage solutions. Crude oil, being the foundational feedstock for a wide range of downstream products, demands significant storage capacity to manage production fluctuations, transportation delays, and trading opportunities. The strategic significance of crude oil reserves in shaping national energy security policies has also led to continued investments in both commercial and strategic storage infrastructure across the region.

The volatility in global crude oil prices encourages operators and traders to hold inventory during periods of favorable market conditions, further intensifying the demand for storage capacity. The crude oil segment also benefits from long-standing pipeline networks and export infrastructure concentrated near major storage hubs, enhancing operational efficiency and utilization rates of associated tank facilities. Technological advancements in tank design and automation have further enabled operators to manage larger volumes of crude with improved safety and environmental compliance. While other product segments such as liquefied natural gas, diesel, and liquefied petroleum gas are witnessing notable growth due to diversification of energy sources and increasing demand from transportation and industrial sectors, their combined market share remains secondary to that of crude oil. Given the continued dominance of crude oil in the North American energy portfolio, supported by robust upstream production and export potential, the crude oil segment is anticipated to retain its market leadership in storage tank demand over the coming years.

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Country Insights

Largest Country

In 2024, the United States dominated the North America Oil & Gas Storage Tank Market and is projected to maintain its leadership throughout the forecast period. This dominance is driven by the country’s vast and mature oil & gas industry, supported by large-scale production in regions such as the Permian Basin, Eagle Ford, and Bakken Shale. The United States benefits from an extensive network of upstream, midstream, and downstream infrastructure, including a well-established pipeline system and numerous refining and export facilities that require substantial storage capacity. The presence of key strategic petroleum reserves, combined with robust commercial storage facilities, enhances the United States' ability to manage supply fluctuations, stabilize domestic energy markets, and respond to global demand shifts.

The ongoing expansion of liquefied natural gas export terminals along the Gulf Coast further contributes to the growing demand for advanced storage tank infrastructure. Governmental initiatives promoting energy independence and private sector investments in storage modernization, safety, and automation are also reinforcing the country’s leadership in this sector. The United States hosts many of the world’s leading oil and gas companies, which continuously invest in state-of-the-art storage technologies and facility upgrades. These factors collectively ensure that the United States remains at the forefront of the oil & gas storage tank market in North America. With strong production output, advanced logistics, regulatory frameworks, and consistent investments in infrastructure, the United States is well-positioned to sustain its dominance throughout the forecast period.

Emerging Country

Canada is rapidly emerging as a significant player in the North America oil & gas storage tank market, driven by its expanding crude oil production, particularly from the oil sands regions of Alberta. The country’s growing export capacity, including the development of pipeline infrastructure such as the Trans Mountain Expansion Project, is fueling increased demand for strategically located storage facilities to support both domestic distribution and international trade.

Canada’s focus on enhancing energy security and managing inventory in response to global market fluctuations is leading to greater investment in modern, large-scale storage tank infrastructure. Governmental support for infrastructure development, combined with technological advancements and stringent environmental standards, is further encouraging the construction of efficient and compliant storage systems. As Canada continues to expand its role in global energy supply chains, its position within the North America oil and gas storage tank market is expected to strengthen steadily over the coming years.

Recent Developments

• In November 2024, Matrix Service Company was awarded a contract for engineering, fabrication, and construction of the inner steel tank for a 100,000 m³ full containment storage tank in Gibbstown, New Jersey. Partnering with Cashman Preload Cryogenics for Delaware River Partners, the dual-service tank is designed to store Liquid Ammonia or Liquid Propane Gas. The project supports growing U.S. LPG exports and highlights Matrix's expertise in cryogenic storage solutions.
• In September 2024, McDermott and BW Offshore formed a strategic partnership to explore the technical and commercial viability of offshore blue ammonia production. The collaboration will utilize BW Offshore’s FPSO expertise and McDermott’s EPCI capabilities to develop sustainable, low-carbon ammonia solutions. By leveraging FPSO technology, the project aims to deliver environmental benefits, cost efficiency, and accelerated deployment, supporting the global transition to cleaner energy alternatives.
• In June 2024, Manchester Tank & Equipment Co. announced the acquisition of the tank refurbishment and recertification business assets of Canadian firm Ditech Testing. This move expands Manchester Tank’s service capabilities across the full product lifecycle—from manufacturing to refurbishment. The acquisition enhances customer value through cost savings and logistics efficiency, while aligning both companies' shared commitment to innovation, quality, and customer service in the North American liquid petroleum tank industry.
• In February 2024, CST Industries, Inc. announced the acquisition of Ostsee Tank Solutions, a strategic move to strengthen its global storage tank and cover solutions portfolio. This acquisition enhances CST’s innovation capabilities and market reach, providing OTS access to advanced aluminum dome technologies like the Optidome EU™ product line. The collaboration combines German engineering with CST’s global manufacturing, promising faster lead times and elevated customer service, while reinforcing CST’s commitment to delivering high-quality, efficient storage solutions worldwide.

Key Market Players

• General Industries, Inc.
• McDermott International, Ltd.
• CST Industries, Inc.
• Hassco Industries Incorporated
• McWane Inc.
• PCL Constructors Inc.
• Imperial Industries Inc.
• Fox Tank Company

Report Scope:

In this report, the North America Oil & Gas Storage Tank Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• North America Oil & Gas Storage Tank Market, By Product:

o   Crude Oil

o   Liquefied Natural Gas (LNG)

o   Diesel

o   Gasoline

o   Kerosene

o   Liquefied Petroleum Gas (LPG)

o   Others         

• North America Oil & Gas Storage Tank Market, By Material:

o   Steel

o   Carbon Steel

o   Fiberglass-reinforced Plastic            

• North America Oil & Gas Storage Tank Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Oil & Gas Storage Tank Market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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