United Kingdom Oil and Gas Market

United Kingdom Oil and Gas Market Overview:

The United Kingdom oil and gas market size reached US$ 577 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 678 Million by 2032, exhibiting a growth rate (CAGR) of 1.80% during 2024-2032. The market is driven by various factors including rising energy security concerns, fluctuating global oil prices, regulatory changes, investment in renewable energy, and the need for infrastructure upgrades, alongside efforts to decarbonize and meet net-zero targets.

United Kingdom Oil and Gas Market Trends:

Energy Transition and Climate Policies

The UK's commitment to achieving net-zero carbon emissions by 2050 is a significant driver for the oil and gas market. Government policies and regulations are pushing the sector to reduce its carbon footprint and invest in cleaner energy alternatives. This transition involves the development of renewable energy projects, such as offshore wind farms, and the widespread adoption of carbon capture and storage (CCS) technologies. The pressure to meet environmental standards and the shift toward sustainable energy sources compel oil and gas companies to innovate and diversify their portfolios, influencing market dynamics and investment strategies. For instance, in July 2024, the UK government announced a record-breaking increase in funding for clean energy projects, unveiling a £1.5 billion budget for renewable energy auctions. This represents a £500 million increase aimed at boosting energy security, reducing power costs for families, and promoting economic growth. The funding includes £1.1 billion for offshore wind, crucial for the UK’s clean energy mission, along with other additional allocations. This initiative supports the government's goal of achieving clean power by 2030 and enhancing the UK's energy independence.

Technological Advancements and Innovation

Technological innovation plays a critical role in shaping the UK oil and gas market. Advances in drilling techniques, such as hydraulic fracturing and horizontal drilling, have unlocked new reserves and enhanced production efficiency. Digitalization and the use of big data, artificial intelligence (AI), and automation improve operational efficiency, safety, and decision-making processes. The adoption of these technologies not only reduces costs but also mitigates environmental impact. Companies that leverage technological advancements can optimize their operations, increase production, and remain competitive in a rapidly evolving energy landscape. For instance, in June 2024, Wood plc has secured the front-end engineering and design (FEED) contract for Centrica Energy Storage’s (CES) redevelopment of the Rough field offshore the UK, aimed at preparing it for future hydrogen storage. The FEED contract includes new pipelines, a new unmanned installation, and onshore injection facilities at the Easington Gas Terminal.

United Kingdom Oil and Gas Market News:

• In June 2024, Shell has agreed to acquire Pavilion Energy, a global LNG trader, from Temasek, the Singapore government’s investment arm. This acquisition will enhance Shell’s LNG offtake and supply portfolio, providing it with Pavilion's contracted supply of approximately 6.5 million tonnes per annum of LNG. Pavilion Energy also offers Shell long-term regasification capacity in the UK, Singapore, and Spain, and operates LNG bunkering services. The deal strengthens Shell's position in the LNG market and expands its access to key gas markets in Asia and Europe.
• In July 2024, SBM Offshore has signed a memorandum of understanding with Norway's Ocean-Power to develop a floating power generation hub that includes carbon capture and storage. The partnership aims to assess the technical feasibility and commercial readiness of the concept, focusing on the continental shelves of the UK and Norway. The hub will utilize Ocean-Power's Blue Power Hub concept, generating electricity offshore using gas turbines and reducing CO2 emissions. 

United Kingdom Oil and Gas Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type and application.

Type Insights:

• Upstream
• Midstream
• Downstream
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes upstream, midstream, and downstream.

Application Insights:

• Offshore
• Onshore
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes offshore and onshore.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

United Kingdom Oil and Gas Market Report Coverage:

Key Questions Answered in This Report:

• How has the United Kingdom oil and gas market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United Kingdom oil and gas market?
• What is the breakup of the United Kingdom oil and gas market on the basis of type?
• What is the breakup of the United Kingdom oil and gas market on the basis of application?
• What are the various stages in the value chain of the United Kingdom oil and gas market? 
• What are the key driving factors and challenges in the United Kingdom oil and gas?
• What is the structure of the United Kingdom oil and gas market and who are the key players?
• What is the degree of competition in the United Kingdom oil and gas market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United Kingdom oil and gas market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United Kingdom oil and gas market.
• Porter's five forces analysis assist 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 United Kingdom 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.