Market Trends of Asia Pacific Oil and Gas CAPEX Industry
This section covers the major market trends shaping the APAC Oil & Gas CAPEX Market according to our research experts:
Upstream is Expected to Dominate the Market
- The Asia Pacific's oil product demand by 2050 is expected to rise to 38.8 million b/d. The increased demand for oil products can be ascribed to the rapid development in the region, particularly the country such as India, China, Indonesia, and Japan.
- The natural gas consumption was around 575.2 billion cubic meters in 2010, which rose to 918.3 billion cubic meters in 2022-totaling a 22.7% share of global natural gas consumption. Similarly, oil consumption in the region was 27,963 thousand barrels daily. In 2021, it was around 35,806 thousand barrels daily, making the Asia Pacific region the biggest consumer of oil products globally.
- Thus, to cater to the increased demand, the oil & gas companies are investing heavily in the oil and gas industry. For instance, In 2022, a Chinese company, Sinopec, is expected to invest more than USD 31 billion in upstream exploitation, especially for the crude oil in Shunbei and Tahe fields and natural gas fields Sichuan province Inner Mongolia region.
- In July 2021, the Indian government approved an order allowing 100% foreign direct investments in oil and gas Public Sector Units. Furthermore, the government has allowed 100% Foreign Direct Investment in upstream and private sector refining projects.
- Factors are expected to boost the oil and gas industry investment in the region during the forecast period.
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China to Dominate the Market
- China is the leading producer of natural gas in the Asia Pacific region. In 2010 natural gas production was 96.5 billion cubic meters; it reached 209.2 billion cubic meters in 2021. In terms of global natural gas production, China contributed around 5.2% in 2021.
- In 2021, China had total proved natural gas reserves of 8.4 trillion cubic meters, 4.5% of global natural gas reserves, and oil reserves of around 26 thousand million barrels, 1.5 % of global proved oil reserves.
- Furthermore, according to the OPEC, in 2030, China's primary energy demand for oil and gas is expected to be around 15.1 mboe/d and 8.1 mboe/d, respectively. Further, demand for oil and gas is likely to grow by about 15.6 mboe/d and 10.1 mboe/d, respectively.
- To full fill this increased demand, China government is taking various initiatives to increase investment in the oil & gas industry, such as FDI policy reforms, financial benefits, subsidies, and other policy reforms.
- In March 2022, Aramco announced a joint venture with North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group. In the project, Aramco will supply up to 210,000 barrels per day of crude oil as feedstock to the refinery complex. The complex is anticipated to be operational in 2024.
- All these factors are expected to drive the oil and gas CAPEX market in China during the forecast period.
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