Oil and Gas Market Report

Oil and Gas Market 2024, Size and Outlook:

The global oil and gas market size was valued at USD 20.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 72.6 Billion by 2033, exhibiting a CAGR of 15.21% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 36.8% in 2024. The oil and gas market share is growing due to the increasing global energy demand, industrialization, extraction technologies, exploration investments, geopolitical influences, cleaner fuel shifts, and economic recovery that supports the demand in the natural gas and LNG sectors.

The oil and gas market growth is attributed to the increasing energy demand amid a global shift toward sustainability. Rapid industrialization, urbanization, and economic expansion in major developing countries like India and China have accelerated oil and natural gas consumption. These fuels are essential for energizing the transportation sector, industry, and energy-intensive users. Technological innovation is key, including horizontal drilling, hydraulic fracturing, and improved oil recovery. These have revolutionized exploration and production to access areas of unconventional reserves, like shale and deepwater. Geopolitics also plays a huge role, in affecting supply chains, trade policies, and pricing dynamics. Even in major oil-producing regions, an issue or problem can drive market volatility. Natural gas is the transitional fuel that is gaining much momentum as a cleaner source of fuel over coal, given the globe's interest in minimizing carbon emissions. The market for liquefied natural gas is expanding at quite a strong rate as the demand comes more frequently from Asia-Pacific and Europe. However, the market faces challenges, including fluctuating prices, stringent environmental regulations, and the accelerating shift toward renewable energy sources, which require the sector to adapt and innovate to maintain relevance.

The United States emerged as a key regional market for oil and gas, driven by advanced technologies, abundant resources, and a robust infrastructure network. Shale production, courtesy of innovation in hydraulic fracturing and horizontal drilling, positioned the U.S. at the top of its league as the world's largest oil-producing country and a key crude oil and natural gas exporter. The most prominent contributors to production growth remain the Permian Basin, Bakken, and Eagle Ford. Increased demand for natural gas, especially for power generation and industrial use, has reinforced the liquefied natural gas (LNG) export market, where shipments into Europe and Asia are increasing. Geopolitical factors that drive energy security and diversification efforts within importing nations add to the U.S.'s significance in global energy markets. Price volatility, environmental regulations, and increasing competition from renewable energy sources present challenges in this sector to be met with continuous innovation and sustainability imperatives.

Oil and Gas Market Trends:

Geopolitical dynamics

Generally, geopolitical tension and alliances drive the global oil and gas market. In this aspect, countries considered significant oil and gas producers, especially in the Middle East, Russia, and the United States, take energy policies as instruments of political maneuverings affecting global supplies. According to the EIA, the United States produced 21.91 Million barrels of oil per day in 2023. For example, if OPEC makes decisions over the production of oil, then respective oil prices in the world can fluctuate on a significant basis. Sanctions or conflicts can derail supply chain relationships further, due to which prices are often unpredictable. This can also create investment and development in the infrastructure in key regions, further affecting global oil and gas market demand and supply dynamics. In this context, it remains essential to reflect on how interplays between nations over energy resources shape the energy landscape, making geopolitics a pivotal factor behind the fluctuations and trends of the oil and gas market.

Technological advancements

The development of technology has influenced the oil and gas market trends in a revolutionary way, changing how discoveries are made, extraction occurs, and processing takes place. Fracking and horizontal drilling technologies have uncovered previously inaccessible reserves, substantially increasing supply worldwide, thus altering the face of global energy markets. Advances in the renewable energy space also make them a competitive threat to the conventional oil and gas business as companies opt for more efficient and environmentally friendly means of extraction. In addition, developments in digital technologies such as AI and IoT enhance efficiency, minimize cost, and improve safety in operations in the sector. Reports present that the IoT in the oil and gas market is set to reach USD 27.7 Billion by 2032. Continuous innovation shapes the competitiveness of companies and the sustainability and resilience of the oil and gas market amidst growing environmental concerns and regulatory pressures. Environmental Policies and Consumer Trends The institution is being pushed toward cleaner practices and diversification of energy portfolios through carbon pricing mechanisms, emissions targets, and investments in renewable energy.

Environmental policies

The International Energy Agency reported that the global energy-related CO2 emissions increased by 1.1% in 2023. The emissions rose by 410 Million Tons (Mt) to a new record high of 37.4 Billion Tons (Gt). Consumer demand for sustainable energy options is on the rise, affecting market dynamics and forcing oil and gas companies to innovate in green technologies and alternative energy. The transition is driven by both regulatory measures aimed at combating climate change and a societal shift in values toward environmental stewardship. This dual pressure forces the oil and gas industry to evolve, seeking a balance between fulfilling current energy needs and contributing to the global push toward reducing carbon emissions. The speed at which this is embraced will determine the future of the global energy market landscape.

Oil and Gas Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global oil and gas market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on type and application.

Analysis by Type:

• Upstream
• Midstream
• Downstream

The upstream represents the largest segment with 49.8% share. It is also known as the exploration and production (E&P) sector and is the cornerstone of the oil and gas industry. It consists of the discovery, exploration, and extraction of crude oil and natural gas from underground or underwater reservoirs. Some of the main activities in this regard are geological surveys, seismic imaging, exploratory drilling, and the development and operation of production wells. This sector is vital as it provides the upstream processing of raw materials to be further refined and ultimately provides the energy required to fuel global consumption. Technologies that have revolutionized upstream include 3D and 4D seismic imaging, horizontal drilling, and hydraulic fracturing. These technologies made access to such reserves possible even in deepwater, shale formations, and other challenging environments of the Arctic region. They increased the recovery rates and improved the resource economics. However, the upstream sector is sensitive to geopolitical tensions, price volatility of oil, regulatory policies, and environmental factors. Such dynamics trigger market forces and keenly push supply-demand balances and worldwide economic changes into the investment decisions and activities of operational companies. Given these challenges, the segment appears somewhat high-risk however, high reward. Nonetheless, a consensus is that the world's demand for energy will continue to increase while shifting toward more sustainable provisions.

Analysis by Application:

• Offshore 
• Onshore 

Based on the oil and gas market forecast, offshore operations are the organization's exploration and production activities in the continental shelf and the deep-water areas of the oceans. While this segment of the business entity incurs relatively higher costs, advanced technology, and greater logistical complexity than onshore, it does provide access to significant untapped reserves that can yield very large volumes of oil and gas. Offshore projects are highly capital-intensive in infrastructure, including platforms, subsea systems, and specific vessels, and are subject to very strict environmental and safety standards. The segment is critical to meeting world energy demand. Deep-water and ultra-deep-water projects form an increasingly larger share of future oil and gas supply. Onshore oil and gas activities are the exploration, extraction, and production operations conducted on land. This segment has dominated the industry traditionally due to easier accessibility, lower development costs, and a longer history of operation compared to offshore activities. Onshore projects can range from shallow, easily accessible wells to complex operations in remote or environmentally sensitive regions. Advances in drilling technologies, including horizontal drilling and hydraulic fracturing, have significantly increased the productivity and feasibility of onshore resources

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Asia Pacific is the largest region in the oil and gas market with 36.8% market share, primarily driven by its rapid industrial growth, burgeoning population, and increasing energy demands. Countries like China and India have led investments in both upstream and downstream segments of the oil and gas industries, which will significantly increase oil and gas market shares. The region's commitment to securing energy supplies to support its expanding economies has led to significant exploration activities, new project developments, and an emphasis on LNG (liquefied natural gas) to meet its cleaner energy goals. Moreover, Asia Pacific's strategic initiatives to reduce dependence on oil imports by enhancing domestic production and diversifying energy sources underscore its pivotal role in the global oil and gas landscape.

Europe's market is characterized by a strong focus on sustainability and energy transition. With stringent environmental regulations and ambitious carbon neutrality goals, European countries are increasingly investing in renewable energy sources, leading to a gradual shift away from traditional energy consumption. However, the region remains a significant player in the global market, with the North Sea being a key production area. The European market also features its highest technological innovations in energy efficiency and searching for alternative energy sources.

North America is a great contributor to the international market, partly due to the huge production in both the United States and Canada. The region experienced a revolution in its energy sector through fracking and horizontal drilling technologies, which revealed enormous shale gas and oil reservoirs. Such technology might have made North America the largest producer of oil and gas and its biggest exporter in terms of LNG. The region is also impacted by market dynamics of policy changes and market trends regarding energy independence and exportation.

The market in Latin America is highly prospective, especially when one takes into consideration countries like Brazil, Mexico, and Venezuela that possess some of the world's largest reserves of crude oil and natural gas. Challenges abound for the region due to the political instability, regulatory uncertainties, and underinvestment in exploration and production activities. Despite all these hurdles, there is huge growth potential and a new windfall with reforms such as Mexico has implemented in the recent past that will encourage foreign investments to reignite its oil and gas industry.

The Middle East and Africa are the biggest producers and hold reserves around the world. However, the Middle East contributes the maximum. From an overall perspective, the region is known for its significant contributions to the global oil supply, with Saudi Arabia, Iran, and the United Arab Emirates serving as key participants. Africa presents another frontier, promising future potential in areas such as East and West. The region slowly shifting toward more natural gas utilization, where notable discoveries and considerable investment have been happening in Mozambique and Egypt, among others.

Key Regional Takeaways:

United States Oil and Gas Market Analysis

The US oil and gas market is primarily fueled by technological advancements, specifically in hydraulic fracturing (fracking) and horizontal drilling. The former enables the U.S. to emerge as a world leader in oil and natural gas production, particularly shale oil and gas reserves. Following this scenario, the country's extensive pipeline infrastructure can support the efficient transport of hydrocarbons to refineries and export terminals. As such, the U.S. boasts a vast network of pipelines, comprised of crude oil pipelines and natural gas pipelines that span from state to state, connecting oil and gas fields to processing facilities, storage hubs, and major export terminals along the coasts. One of the major advantages of pipeline transportation is that it allows for the transport of large quantities of hydrocarbons at a relatively lower cost compared to any other method like trucking or rail. Except for this, the increasing need for energy caused by industrial development and transportation needs is driving the market growth. According to the Board of Governors of the Federal Reserve System, industrial production (IP) rose 0.9% in December, however, showed a gain of 0.2% in November 2024. Apart from these factors, economic policies and the regulatory environment created through tax incentives to energy companies, along with government support toward energy independence, are significantly contributing to the market growth. More importantly, growth in oil and gas exports, particularly across Asia, is contributing to dynamics in markets.

Europe Oil and Gas Market Analysis

In Europe, the market for oil and gas is determined by the factors of energy security, regulatory policies, and the transition to the use of cleaner energy sources. Many European countries, especially those in Eastern Europe, rely on oil and gas imports, which heightens the need for reliable supply chains. Energy security, therefore, remains a primary concern, prompting increased efforts to diversify sources and investments in domestic exploration. Another major impetus is the European Union's carbon reduction drive and the European Green Deal, which dictates the adoption of cleaner technologies and renewable energy. The reports indicate the estimated greenhouse gas emissions associated with the EU economy for the fourth quarter of 2023 were at 897 Million Tons of CO2-equivalents (CO2-eq). However, natural gas, especially as a bridge fuel, remains an essential component of the energy mix. In this light, Europe has seen a spurt in the demand for LNG, driven more by the reduced dependence on Russian supplies and an effort to lower emissions through cleaner fuels. Geopolitical tensions arising from the Russia-Ukraine conflict, besides Europe's push to improve energy security, prompted a reevaluation of these energy dependencies. In response, European countries have hastened investments in LNG infrastructure, including LNG import terminals, to diversify their sources of natural gas and hedge against alternative supply routes. LNG allows Europe to import natural gas sourced from a variety of global suppliers, including the United States, Qatar, and other nations. That helps reduce the region's dependence on any individual country and the attendant risk of supply disruptions.

Asia Pacific Oil and Gas Market Analysis

Asia Pacific is a giant market in the global oil and gas market, fueled by high industrial growth, increased urbanization, and growing energy demand. China and India are two of the major consumers of energy in the Asia Pacific. This region drives its substantial market, and the reasons include industrial activity, transportation, and its ever-rising population that will lead to more consumption of oil and gas. Total energy consumption continued to grow significantly, at 6.5 %/year since 2020, of which 5% in 2023; it reached 1.14 Gtoe in 2023 in India. In the same vein, the region holds significant reserves, and countries such as Russia, Australia, and Malaysia have invested highly in exploration and production. Another important factor is that the Asia Pacific region is boosting investment in LNG infrastructure to meet domestic energy needs. Natural gas, especially in the form of LNG, can address this particular concern and support the reduction of coal and oil usage by countries in this region while working on energy security challenges. This has led many Asia-Pacific nations to expand their LNG import and export capabilities, building a robust infrastructure that supports energy demand in the region. Additionally, access to the South China Sea and regional trade agreements are influencing the supply chain. Besides, policies on energy security and environmental regulations are determining the future of oil and gas development in the region.

Latin America Oil and Gas Market Analysis

Latin America's oil and gas market is primarily driven by significant reserves, especially in countries like Brazil, Venezuela, and Mexico. Exploration and production activities in offshore oil fields and shale reserves have gained attention, contributing to increasing output levels. Investments in refining and infrastructure are also driving the market, allowing for better distribution of fuels across the region. Regional demand from growing populations and industrialization continues to drive the sector. As indicated by the data, the population in Brazil as of 2024 was 211,998,573. In line with this, the trade relations of the region with both the U.S. and Asia play a crucial role in determining the market, particularly about oil exports.

Middle East and Africa Oil and Gas Market Analysis

The Middle East and Africa region is still one of the global energy superpowers, holding extensive oil and gas reserves that are critical to world supply. The largest proven reserves are in the Middle East, especially in Saudi Arabia, Iraq, and the UAE, making the region a significant player in the energy market. Furthermore, investments in exploration and production technologies continue to increase output. Africa, with its growing reserves in countries like Nigeria and Angola, is fast becoming a critical contributor to global supply, attracting foreign investments. Domestic and export energy demand, along with increasing infrastructure development, is pushing up the growth in the market. According to the EIA, energy consumption per capita in Saudi Arabia was 316.3 Million Btu per person in 2023.

Competitive Landscape:

Market players in the oil and gas industry are actively pursuing strategies to adapt to evolving market dynamics and ensure long-term growth. Major activities encompass investments in high-end exploration and production technologies for increased efficiency and profitable resource recovery. Companies are also diversifying toward renewable energy sources, including wind, solar, and hydrogen, due to global goals to transition toward the energy transition. Consolidation is the most important trend, in terms of mergers and acquisitions, as firms look to amalgamate resources to improve operational synergies and save costs. Also, digital transformation, such as AI, IoT, and predictive analytics, is reshaping operations and increasing productivity. Sustainability initiatives like carbon capture and storage (CCS) are also gaining ground, reflecting a sense of growing environmental responsibilities. The efforts create a positive oil and gas market outlook.

The report provides a comprehensive analysis of the competitive landscape in the oil and gas market with detailed profiles of all major companies, including:

• BP p.l.c.
• Chevron Corporation
• ConocoPhillips Company
• Equinor ASA
• Exxon Mobil Corporation
• PetroChina Company Limited
• PJSC Lukoil Oil Company
• PJSC Rosneft Oil Company
• Saudi Arabian Oil Co.
• Shell plc
• TotalEnergies SE

Latest News and Developments:

• January 2025: The Goa state government has approved the setting up of a 150 Tons per day (TPD) compressed biogas (CBG) plant by the Gas Authority of India Limited (GAIL) in the state. The project was initially proposed for Verna. However, the government has now decided to shift it to another location as the government did not want to set it up in Verna as pharmaceutical companies are there.
• In December 2024, Italy’s Eni launched the world’s most powerful supercomputer outside the U.S. to enhance oil and gas exploration and advance clean energy. The $100 million machine optimizes industrial operations, improves CO2 storage studies, develops efficient batteries, and refines biofuel supply chains. Ranking fifth globally, it marks a major technological leap for energy innovation.
• December 2024: BP and XRG, ADNOC's global energy investment firm, formed Arcius Energy, a new regional gas platform that would first concentrate on the growth of gas assets in Egypt. The new joint venture, which builds on ADNOC and BP's 50-year alliance, supports both firms' strategic growth goals.
• In August 2024, Egypt’s state-owned EGAS launched a new tender for natural gas and crude oil exploration across 12 concessions in the Mediterranean Sea and Nile Delta. This aligns with Egypt’s plan to drill 45 wells by mid-2025 with $1.9 billion in investments. Egypt, Africa’s second-largest gas producer, has expanded output significantly since 2015, driven by the Zohr gas field’s production.
• March 2024: Prime Minister Narendra Modi launched several projects in the oil and gas industry. States covered by these projects include Bihar, Haryana, Andhra Pradesh, Maharashtra, Punjab, and Karnataka.
• February 2024: ADNOC and BP reached an agreement to form a new joint venture (JV) in Egypt. As it strives to expand an incredibly competitive gas portfolio, the JV-51% BP, and 49% ADNOC will incorporate the pair's strong technical capabilities and established history. As part of the deal, BP gives the new JV its interests in three development concessions, including exploration contracts in Egypt.

Oil and Gas Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the oil and gas market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global oil and gas market.
• The study maps the leading, and the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the oil and gas industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.