Global Conventional Oil Market to Experience Noteworthy Growth by 2031 with the Rising Demand for Engine Oil from the Automotive Sector

Conventional oil is a vital component of the global energy sector, supplying the world's most significant source of fuel. It is extracted from reservoirs using traditional drilling techniques, and it has been the backbone of the global energy industry for over a century. The global conventional oil market has undergone significant changes over the past few years, primarily due to the rise of unconventional oil production methods such as fracking and tar sands extraction.

Recent Trends in the Conventional Oil Market

The conventional oil market is facing several significant trends that have shaken the industry in recent years. Despite being the world's most important source of fuel, conventional oil production is declining due to a variety of factors, including reservoir depletion and regulatory obstacles. Furthermore, price volatility and competition from unconventional oil have impacted the market's supply and demand dynamics, causing prices to fall. As the world transitions to renewable energy, the conventional oil industry is facing extinction as consumers and governments demand cleaner fuels. As a result, the industry has made significant investments in new technology to improve production efficiency and reduce environmental impact. These trends highlight the need for a sustainable and diversified energy mix to meet the world's growing energy demand while reducing the environmental impact of fossil fuels.

Newest Insights in the Conventional oil Market

As per a report by Research Dive, the global conventional oil market is expected to grow at a CAGR of 6.4% in the 2022-2031 timeframe and generate revenue of $4,690.2 billion by 2031. Conventional oil deposits are the easiest to access and develop technically. In the coming years, industrial oil sales are expected to be impacted by an increase in the demand for improved equipment reliability and uptime across a variety of industries. Increased production and sales of light-duty vehicles are expected to directly impact engine oil consumption, driving engine oil demand during the forecast period.

As industrialization reorganized economies to produce goods, fossil fuels have been at the heart of growth and trade. Fuels derived from energy-dense crude oil have long since supplanted coal in many applications, and they now dominate the transportation fuel market. These factors are expected to drive the expansion of the conventional oil market share during the forecast period. The conventional oil market in LAMEA is expected to remain dominant in the coming years. This is because the region accounts for about 27% of the worldwide oil output.

How are Market Players Responding to the Rising Demand for Conventional oil?

Market players are responding to the rising demand for conventional oil by investing in research and developments. In addition, market players are increasingly focusing on strategic partnerships and collaborations with other players in the industry to leverage their strengths and expand their reach. Some of the foremost players in the conventional oil market are Eni, BP, ExxonMobil, Shell, CNPC, Repsol, Equinor, Total, Chevron, Petrobras, and others. These players are focused on implementing strategies, such as mergers and acquisitions, novel developments, collaborations, and partnerships to reach a leading position in the global market. 

For instance, 

• In March 2022, Castrol India Limited, a global front-runner in high performance lubricants for the industrial, automotive, marine & aerospace industries, launched its newest range of Castrol MAGNATEC, which includes a low viscosity engine oil, 0W-16, for retail aftermarkets, and Castrol MAGNATEC SUV for sport utility vehicles (SUVs).
   
• In October 2022, GMB, a worldwide producer and supplier of OE and aftermarket automotive products, added 3 new product categories Motor Oil, Automotive Batteries, and Oil Filters to its product portfolio.
   
• In February 2023, Shell, a global group of energy & petrochemical companies, collaborated with Marvel Heroes Unite to launch the Helix SP HX8 0W-20 BS6 compliant passenger car motor oils, specially designed for modern turbocharged engines.

COVID-19 Impact on the Global Conventional Oil Market

The COVID-19 pandemic has had a negative impact on the global conventional oil market. The lockdown measures implemented by countries around the world have resulted in a sharp decline in demand for oil, as people have reduced their travel and business activities have been put on hold. This drop in demand has led to a glut of oil supply and a significant fall in oil prices.

The pandemic has also disrupted global supply lines, making it difficult for oil-producing countries to transport their products to the market. However, as the world gradually recovers from the pandemic, the demand for conventional oil is expected to rise. With the easing of lockdown measures and the resumption of economic activities, the demand for transportation fuels is expected to increase, boosting the demand for conventional oil, thus boosting the global conventional oil market growth in the coming years.