The Petroleum and Petroleum products wholesale trade in Singapore fell by 46 per cent in the last quarter of 2020. Exports contracted by a similar amount with commercial air travel falling drastically as country borders were closed with governments endeavoring to stem the spread of Covid-19.
Overview of Sector
Petroleum products are by-products derived from petroleum with the majority converted to petrol, followed by diesel. Other products include jet fuel, liquified petroleum gases, bunker fuel and lubricants. The end residue of distillation is asphalt, used for road surfacing.
The resumption of air travel back to pre-covid levels may not materialize fully. Multinational companies have employed virtual conferencing to connect teams in different countries, reducing business travel. Tourism has taken a back seat as governments want to avoid imported cases of Covid-19 cases.
The six major oil traders in the world with offices in Singapore are:
- British Petroleum provides fuel for transportation, energy for heat and light, retail services and petrochemicals products.
- Royal Dutch Shell plc operates as an oil and gas company worldwide. The company explores for and extracts crude oil and natural gas.
- Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products.
- Chevron Corporation engages in petroleum, chemicals, mining, power generation, and energy operations worldwide.
- TOTAL S.A. operates as an integrated oil and gas company worldwide.
- Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas.
A typical oil trading company such as the Swiss Singapore has a team of in-house chartering experts who manage the supply chain. The key lies in their ability to coordinate and interact efficiently to bring customers integrated solutions.
The Department of Statistics define this sector as follows:
- SSIC 46611 Crude Petroleum
- SSIC 46612 Mineral fuels and lubricants (excluding ship bunkering)
- SSIC 46619 Solid, liquid and gaseous fuels and related products (e.g. bitumen)
The Industry at a Turning Point
In line with the government's target for Singapore's Green Plan 2030, Shell Singapore is repurposing its core business, downsizing the Pulau Bukom refinery in preparation for a low-carbon future.
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