Oil and Gas Projects Market size was valued at USD 621.50 billion in 2022. The Oil and Gas Projects market industry is projected to grow from USD 658.72 Billion in 2023 to USD 1,111.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.65% during the forecast period (2024 - 2032). Increased global demand for energy and innovation in technology are the prime market drivers enhancing the market growth.
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
Market CAGR for oil and gas projects is being driven by the surging global demand for energy. The population, along with surging industrialization and urbanization, and the need for energy, mainly in the form of oil and gas, remain insatiable. This unrelenting need stems from diverse firms like manufacturing, transportation, and power generation, establishing oil and gas as crucial components in the global energy landscape.
The transportation sector heavily depends on oil-derived products, primarily gasoline and diesel, to boost automobiles, ships, and airplanes. Further, the industrial sector relies extensively on oil and gas as primary sources of energy and as raw materials for different processes. Oil is a prime input for the production of plastics, chemicals, and other essential materials, while natural gas is broadly utilized for heating, power generation, and as a feedstock in industrial processes.
With the proliferation of automobiles in developing markets and the proliferation of global trade, the demand for oil in transportation remains robust. Additionally, natural gas plays an important role in the transportation sector as a cleaner alternative for vehicles and as a feedstock for the production of liquefied natural gas (LNG) used in marine transport. The industrial demand for energy, especially in emerging economies undergoing rapid industrialization, continues to boost investment in oil and gas projects to meet these escalating needs.
The power generation sector is a significant consumer of oil and gas. As there is a rising focus on renewable energy sources, many regions still heavily depend on fossil fuels for electricity generation. Oil and gas power plants offer a reliable and consistent energy supply, mainly in areas where renewable infrastructure is still developing or faces intermittency challenges.
The flexibility and efficiency of natural gas power plants also help as a transitional energy source. Moreover, the global demand for energy is increased by the surging middle class in developing countries, resulting in increased energy consumption for residential and commercial purposes. As more households gain access to modern amenities, the reliance on energy-intensive appliances, heating, and cooling systems rises, further boosting the demand for oil and gas.
In response to this growing demand, the oil and gas industry continues to invest in exploration, drilling, and production projects to ensure a stable and secure energy supply. These projects range from conventional oil and gas reservoirs to unconventional sources, like shale and deepwater deposits. The continuous advancement of extraction technologies, exploration methods, and project management practices helps the industry to access previously untapped reserves, contributing to the growth of oil and gas projects worldwide. Thus driving the Oil and Gas Projects market revenue.
The Oil and Gas Projects Market segmentation, based on type, includes Surface and Lease Equipment, Gathering and processing, Oil and gas, NGL Pipelines, Oil and gas Storage, Refining and oil Products, Transport, and Export Terminals. The oil, gas & pipelines segment dominated the market, accounting for the largest market revenue because of their critical role in the extraction, transportation, and distribution of hydrocarbons.
The growing investments and intricate infrastructure needed for these projects position the oil, gas, and pipeline sector as a dominant force in shaping the overall landscape of the Oil and Gas Projects market. The exploration and the generation of oil and gas reserves involve deep drilling and extraction operations, making these projects integral to the industry. Additionally, the construction and maintenance of pipelines are important for efficiently transporting oil and gas over large distances that connect production sites with processing facilities and end-users.
The Oil and Gas Projects Market segmentation, based on drilling, includes Offshore and Onshore. The offshore category dominates the market due to the significant reserves located beneath the ocean floor, providing vast untapped resources for exploration and extraction.
The development of advanced drilling technologies and the capability to reach deeper and more remote offshore locations have made it economically viable to pursue offshore projects. Moreover, offshore drilling provides access to huge reservoirs in regions where onshore exploration may face environmental or geopolitical challenges, further focusing on its strategic importance in the oil and gas industry globally.
Figure 1: Oil and Gas Projects Market, by Drilling, 2022 & 2032 (USD Billion)
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
By region, the study delivers market insights of North America, Europe, Asia-Pacific, and the Rest of the World. The North American Oil and Gas Projects market area dominates this market, with abundant shale resources, leading to increased exploration, extraction, and production activities. Further, the pursuit of energy independence, technological advancements in extraction methods, and the surging demand for natural gas in power generation contribute to the market growth.
Further, the prime countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: Oil and Gas Projects Market Share By Region 2022 (USD Billion)
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe's Oil and Gas Projects market accounts for the second-largest market share due to the strategic efforts to diversify its energy sources and improve energy security, increasing the investments in exploration, production, and infrastructure projects. Further, the German Oil and Gas Projects market held the biggest market revenue share, and the UK Oil and Gas Projects market was the fastest-growing market in the European region.
The Asia-Pacific Oil and Gas Projects Market is expected to rise at the fastest CAGR from 2023 to 2032. This is due to the rising industrialization, rapid urbanization, and growing energy demands. Moreover, China’s Oil and Gas Projects market held the largest market revenue share, and the Indian Oil and Gas Projects market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in the research and development in order to expand their product lines, which will assist the Oil and Gas Projects market grow even more. Market players are also undertaking different strategic activities for expanding their global footprint, with important market developments inclusive of contractual agreements, mergers and acquisitions, new product launches, higher investments, and collaboration with the other organizations. To expand and survive in the more competitive and rising market climate, the Oil and Gas Projects industry must offer cost-effective items.
Manufacturing locally to minimize the operational costs is one of the prime business tactics utilized by the manufacturers in the global Oil and Gas Projects industry to benefit the clients and increase the market sector. In recent years, the Oil and Gas Projects industry has offered some of the most significant advantages to different industries.
Major players in the Oil and Gas Projects market, including NGL Energy Partners LP, Centrica plc, Kinder Morgan, Schlumberger Limited, Exxon Mobil Corporation, Chevron Corporation, ConocoPhillips Company, Marathon Oil Company, Occidental Petroleum Corporation, Halliburton and others, are trying to raise market requirement by investing in the research and development operations.
ExxonMobil is one of the world's largest publicly traded international oil and gas companies; popular for its prominence in the energy sector, ExxonMobil operates throughout the entire spectrum of the oil and gas industry, from the exploration and production to refining, marketing, and the development of petrochemical products. The company's global footprint spans numerous continents, and it plays a significant role in meeting the world's energy needs.
On October 27, 2023,ExxonMobil partnered with Microsoft to accelerate digital transformation in their Permian Basin operations, emphasizing optimizing production and reducing emissions.
Chevron Corporation, one of the biggest multinational energy corporations globally, is a prime player in the oil and gas industry. Headquartered in California, Chevron operates throughout the entire energy spectrum, from the exploration and production to refining, marketing, and the development of renewable energy sources. The company's broad portfolio includes a significant presence in upstream exploration and production activities and downstream operations that involve refining crude oil and marketing different petroleum and petrochemical products.
On November 10, 2023,Chevron and Enbridge announced a joint venture in order to develop the Golden Dawn LNG export project in Louisiana, expected to be operational by 2027.
December 2023:EOG Resources partnered with CarbonCapture Inc. to deploy carbon capture and storage technology at its Anadarko Basin facilities, aiming to achieve net-zero emissions by 2040.
November 2023:Coterra Energy acquires Haynesville Shale assets from Chesapeake Energy for $1.8 billion, strengthening Coterra's position as the leading natural gas producer in the Haynesville Shale.
February 2021:Hydroxycut's newest creation, CUT Energy, a delectable clean energy drink, was released. This powerful mix was carefully formulated for regular energy drink consumers, exercise enthusiasts, and dieters looking to lose weight.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 621.50 Billion |
| Market Size 2023 | USD 658.72 Billion |
| Market Size 2032 | USD 1,111.8 Billion |
| Compound Annual Growth Rate (CAGR) | 5.65% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Drilling, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | NGL Energy Partners LP, Centrica plc, Kinder Morgan, Schlumberger Limited, Exxon Mobil Corporation, Chevron Corporation, ConocoPhillips Company, Marathon Oil Company, Occidental Petroleum Corporation, Halliburton |
| Key Market Opportunities | The growing innovation in technology. |
| Key Market Dynamics | Increased global demand for energy. |
Oil Gas Projects Market Highlights:
Frequently Asked Questions (FAQ) :
The Oil and Gas Projects Market size was valued at USD 621.50 Billion in 2022.
The global market is foreseen to rise at a CAGR of 5.65% during the forecast period, 2024-2032.
North America held the biggest share of the global market
The key players in the market are NGL Energy Partners LP, Centrica plc, Kinder Morgan, Schlumberger Limited, Exxon Mobil Corporation, Chevron Corporation, ConocoPhillips Company, Marathon Oil Company, Occidental Petroleum Corporation, Halliburton.
The Oil, Gas & NGL Pipelines category dominated the market in 2022.
The offshore had the largest share in the global market.
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