Global Vacuum Gas Oil Market: Snapshot
Vacuum gas oil or VGO is one of those puzzle items discussed by purifiers yet scarcely comprehended by those of us that are not engineers. Anyway it is a significant transitional feedstock that can expand the yield of important diesel and gas from processing plants. Lighter shale crudes, for example, Eagle Ford can deliver VGO material direct from essential refining. Today we shed some light on this semi-completed processing plant item. Vacuum refining recoups gas oil from the lingering oil and vacuum gas oil market.
What is Vacuum Refining and How It is Helping the Businesses?
In layman terms vacuum refining includes warming the lingering oil in a vacuum with the goal that the breaking point temperature is decreased. This permits refining at temperatures that are unrealistic in environmental refining since generally coke from the substantial leftover oil will in general set. Vacuum refining breaks out light and substantial gas oil parts leaving vacuum residuum that can be additionally prepared by a coker unit or sold as fuel oil. Based on these factors the global vacuum gas oil market is growing exponentially.
In an average complex treatment facility, for example, are normal in the United States – especially on the Gulf Coast, VGO is additionally prepared in one of two sorts of synergist splitting units. These "breaking" units utilize a mix of impetuses warmth and strain to split VGO into lighter gas mixing parts and diesel. Based on this simplicity of the vacuum gas oil units, he global vacuum gas oil market is growing substantially in current time.
Vacuum Gas Oil Market: Introduction
- Vacuum gas oil also known as cat feed, a feedstock for fluid catalytic cracker used in the production of gasoil, gasoline, and many other by-products
- Vacuum gas oil is an element of petroleum hydrocarbon distillate family. Vacuum gas oil consists of hydrocarbon material, which is heavier than diesel. The cracking temperature is close to 360°C and is favored to combine with hydrogen.
- Vacuum gas oil is primarily used as feed in cracking systems such as hydrocracker and fluid catalytic cracking. These systems upgrade vacuum gas oil into products such diesel, gasoline and if not upgraded it can also be blended with residual fuel
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Hydrocracking and Fluid Catalytic Cracking of Vacuum Gas Oil
- Fluid catalytic cracking is one on the complex and extensively used process in petroleum refining. It is used to process heavy petroleum gas oils into diesel fuels, light olefins, gasoline, and other products
- Fluid catalytic cracking of vacuum gas oil results in wide range of products such as methane, hydrogen, and heavy polymeric material such as coke
- Hydrocracking of vacuum gas oil can obtain yields and qualities of fractions such as kerosene, diesel, naphtha, and unconverted oil. However, the efficiency of hydrocracking of vacuum gas oil depends on the nature of catalyst used.
Key Driver of Vacuum Gas Oil Market
- The use of vacuum gas oil in the production of diesel is likely to boost the demand for the oil in the market. Rise in investment in research and development in hydrocracking and fluid catalytic cracking process is helping gain good output from these process. Thus, vacuum gas oil can help recover the demand for diesel in the market.
- Demand for vacuum gas oil in bunker fuel is increasing due to the rise in demand in the marine market. Growth in sea trade and marine exploration is anticipated to augment vacuum gas oil market in the next two years.
- On January 2019, Indian Oil Corporation Ltd, shut its vacuum gas oil hydrotreating unit at its refinery at Vadodara for 50 days to raise its capacity to 2.2 million mt/year, up 4.8% from the current capacity. The company plans to hike the capacity of its continuous catalytic reformer at the same time to 780,000 mt/year, up 30% from the current capacity.
North America Expected to Hold Major Share of the Global Vacuum Gas Oil Market
- Geographically, the vacuum gas oil market can be split across five regions North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- North America held significant share of the market during the forecast period in 2018, due to the high automobile volume and increase in need for high octane gasoline in the region. Furthermore, the region has well established cracking and refining facilities.
- The vacuum gas oil market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period due the increase in demand for automobiles and growth in investment in the petroleum sector
- The vacuum gas oil market in Europe is projected to hold moderate share of the market in the near future
- The market in Latin America and Middle East & Africa is expected to expand at a slow pace during the forecast period
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Key Players Operating in the Vacuum Gas Oil Market:
- Kuwait Petroleum Corporation
- Exxon Mobil Corporation.
- Axeon Specialty Products
- U.S. Oil & Refining Co.
- Royal Dutch Shell
- Zhejiang Petrochemical Corporation
- Solis Oil
- Vertex Energy Inc.
Global Vacuum Gas Oil Market: Research Scope
Global Vacuum Gas Oil Market, by Product
- Heavy Vacuum Gas Oil
- Light vacuum Gas Oil
Global Vacuum Gas Oil Market, by Sulfur Content
- Low Sulfur VGO
- High Sulfur VGO
Global Vacuum Gas Oil Market, by Application
- Gasoline Production
- Diesel Oil/Kerosene Production
Global Vacuum Gas Oil Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.