Petroleum & Coal Products Manufacturing Industry Profile

Companies in this industry refine crude oil and coal into fuel, asphalt products, lubricating oils, and other products. Major companies include US-based Chevron, Exxon Mobil, Marathon, and Phillips 66, as well as CPC (Taiwan), ENEOS Corporation (Japan), ENI (Italy), Indian Oil (India), SK Energy (Korea), and Suncor Energy (Canada).

Global oil production has increased over the past two decades hitting about 95 million barrels of oil produced daily in 2019, according to Statista. Global coal production rose by 1.5%, with China and Indonesia providing the only significant increases while the largest decline came from the US, according to BP Statistical Review of World Energy

The US petroleum and coal products manufacturing industry includes about 2,100 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $550 billion.

COMPETITIVE LANDSCAPE

Demand is driven by consumption of gasoline and diesel fuel and by construction activity. The profitability of individual companies depends on efficient operations. Larger refinery and asphalt companies enjoy economies of scale, but small companies can compete by producing specialty products that are in high demand. The US industry is highly concentrated: the 50 largest companies account for about 95% of revenue.

Imports of petroleum and coal products account for about 12% of the US market. Major import sources are Canada and Russia. Exports, primarily to Mexico and Canada, account for about 20% of US production.