CAPEX Oil and Gas Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Oil and Gas CAPEX Market Outlook and is Segmented by Sector (Upstream, Midstream, and Downstream), Location (Onshore and Offshore), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts in revenue (USD) for all the above segments.

CAPEX Oil and Gas Market Size

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Oil and Gas CAPEX Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 4.27 %
Fastest Growing Market Middle East and Africa
Largest Market North America
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

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CAPEX Oil and Gas Market Analysis

The Oil and Gas CAPEX is expected to grow from USD 797.58 billion in 2023 to USD 983.04 billion by 2028, at a CAGR of 4.27% during the forecast period (2023-2028).

The market was impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

  • Over the medium term, the rising investments in offshore oil & gas activities owing to the surging energy demand, depleting onshore reserves, and efforts from governments across nations to explore their offshore resources are expected to drive the growth of the oil & gas capex market in the coming years.
  • On the other hand, volatile crude oil and natural gas prices, coupled with slow economic growth at a global level, are expected to restrain the oil and gas CAPEX during the forecast period.
  • Nevertheless, several offshore, deep, and ultra-deepwater explorations in the North Sea, Gulf of Mexico, and developing countries such as Senegal and Mauritiana, provide ample opportunity for increased capital expenditure.
  • North America has recorded the highest gains in CAPEX, owing to operations of globally integrated majors, along with national oil companies and new investments during the forecast period.

CAPEX Oil and Gas Market Trends

Upstream Sector to Dominate the Market

  • Investment in the upstream oil & gas industry had started recovering after the rise in oil & gas demand amid the opening of the COVID-19 lockdowns. An increase in demand recovered crude oil prices in 2022. For instance, in 2020, crude oil prices were about USD 41.96 per barrel, and in 2022 the prices reached more than USD 110 per barrel, which resulted in a surge in investment in the oil & gas industry.
  • The oil and gas CAPEX market is expected to witness significant growth owing to factors, including strong profitability due to a trend toward reducing project costs and optimizing portfolios, which has led to divesting of low-margin fields, as well as a greater emphasis on investments in higher-margin growth opportunities.
  • The upstream sector is likely to be the largest segment and the one with the highest CAPEX, as several state-owned companies worldwide are prioritizing domestic oil and gas projects to increase energy security and reduce their dependence upon foreign energy sources.
  • According to Internation Energy Agency (IEA), The global oil & gas, low carbon fuel investments reached around USD 1.73 trillion in 2022, representing an increase of more than 6.7% compared to the previous year's value.
  • Several oil and gas majors have announced more than average increases in capital expenditures for 2023 and beyond. For instance, in December 2022, Chevron Corporation announced 2023 organic capital expenditure budgets of USD 14 billion for its consolidated subsidiaries (CAPEX) and USD 3 billion for its equity affiliates (affiliate CAPEX).
  • Chevron Corporation has planned an upstream capital and exploratory expenditure budget of approximately USD 11.5 billion for 2023. The upstream capex includes more than USD 4 billion for development activities in the Permian Basin and approximately USD 2 billion for other shale and tight assets. More than 20% of the upstream capex is dedicated to Gulf of Mexico projects.
  • Over the next three fiscal years, during FY 2022-25, Oil and Natural Gas Corporation (ONGC) planned to increase its exploration activity with capital expenditures of approximately USD 3.8 billion. In terms of exploration expenditures, this represents 150 percent of the USD 2.5 billion spent during the previous three fiscal years (FY 2019-22).
  • Hence, to meet the strong global demand for crude oil and natural gas, more investment is required for exploration and production activities, which promulgates the CAPEX in the oil and gas industry.
Oil and Gas CAPEX Outlook: Energy Sector Investments (Oil & Gas, Low-Carbon Fuels)

North America to Dominate the Market

  • North America is one of the largest markets in terms of capital expenditure in the oil and gas industry, with the United States being the leader, followed by Canada and Mexico. The United States is a major crude oil and natural gas producer in the world, and the country is expected to cover around 60% of the world's oil demand in the coming years.
  • The United States has always been at the forefront in the past and is also expected to dominate the region's oil and gas CAPEX market in the forecast period. The country oil and gas projects accounts for approximately 70% of the total investments in North America during the forecast period. Of the total number of upstream projects in the country, more than 80% are estimated to be the new build while the expansion projects are expected to account for the remaining 20% during the forecast period.
  • According to United States Energy Information Administration (EIA), crude oil production in the country record 11.24 million mbpd in 2021. The crude oil production declined significantly in 2019. In the same year, oil production reached the highest point in history with 12.25 million mbpd. The United States produces more oil than any other country in the world.
  • As of February 2022, the country has approximately USD 60 billion of CAPEX plans for petrochemical plants that are either under planned or announced stages. The projects are likely to propel the CAPEX market for fixed assets in the downstream sector of the United States during the forecast period.
  • Furthermore, in between 2021-2023, a major Canadian oil and gas operator, Enbridge, is expected to invest a total of USD 16 billion in the country. Another company Tervita announced a capital investment of around USD 60 million in 2021 compared to 33 million in 2020. Therefore, the CAPEX is further expected to increase during the forecast period.
  • Therefore, with a decent number of several oil & gas projects under construction, proposal, and planning stages, the oil and gas CAPEX market is expected to witness significant growth during the forecast period.
Oil Gas CAPEX Market: Growth Rate by Region, 2023-2028

CAPEX Oil and Gas Industry Overview

The global oil and gas CAPEX market is moderately fragmented. Some of the key players (in no particular order) include BP PLC, Exxon Mobil Corporation, TotalEnergies SE, Chevron Corporation, and Shell PLC.

CAPEX Oil and Gas Market Leaders

  1. Exxon Mobil Corporation

  2. BP PLC

  3. Chevron Corporation

  4. Shell Plc

  5. TotalEnergies SE

*Disclaimer: Major Players sorted in no particular order

Oil and Gas CAPEX Market Concentration
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CAPEX Oil and Gas Market News

  • In January 2023, Cairn Oil & Gas, Vedanta Limited, one of the major oil and gas exploration and production companies in India, signed a proposal for USD 2.5 billion investment in the oil and gas sector. Cairn Vedanta has started exploration and other development works in the Petroleum Exploration Licence (PEL) and Petroleum Mining Lease (PML) blocks in Barmer and Jalore districts, Rajasthan.
  • In February 2022, the Government of India owned Public Sector Units (PSUs) such as Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), GAIL (India) Ltd., Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited (HPCL) announced USD 14.5 billion, as part of center's massive spending on an expansion drive to spur economic growth.

CAPEX Oil and Gas Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD, till 2028

    3. 4.3 Crude Oil Production and Consumption Forecast, till 2028

    4. 4.4 Natural Gas Production and Consumption Forecast, till 2028

    5. 4.5 Installed Pipeline Historic Capacity and Forecast in Kilometers, till 2028

    6. 4.6 Historic and Production Forecast of Tight Oil, Oil Sands, and Crude from Deepwater in kb/d, until 2030

    7. 4.7 Recent Trends and Developments

    8. 4.8 Government Policies and Regulations

    9. 4.9 Market Dynamics

      1. 4.9.1 Drivers

        1. 4.9.1.1 Increasing Demand for Natural Gas and Developing Gas Infrastructure

        2. 4.9.1.2 Increasing Offshore Oil & Gas Exploration Activities

      2. 4.9.2 Restraints

        1. 4.9.2.1 Adoption of Cleaner Alternatives

        2. 4.9.2.2 High Volatility of Crude Oil Prices

    10. 4.10 Supply Chain Analysis

    11. 4.11 Porter's Five Forces Analysis

      1. 4.11.1 Bargaining Power of Suppliers

      2. 4.11.2 Bargaining Power of Consumers

      3. 4.11.3 Threat of New Entrants

      4. 4.11.4 Threat of Substitutes Products and Services

      5. 4.11.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Sector

      1. 5.1.1 Upstream

      2. 5.1.2 Midstream

      3. 5.1.3 Downstream

    2. 5.2 Location

      1. 5.2.1 Onshore

      2. 5.2.2 Offshore

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 Russia

        4. 5.3.2.4 Norway

        5. 5.3.2.5 Netherlands

        6. 5.3.2.6 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Malaysia

        4. 5.3.3.4 Indonesia

        5. 5.3.3.5 ASEAN Countries

        6. 5.3.3.6 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Venezuela

        3. 5.3.4.3 Argentina

        4. 5.3.4.4 Colombia

        5. 5.3.4.5 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 United Arab Emirates (UAE)

        3. 5.3.5.3 Egypt

        4. 5.3.5.4 Nigeria

        5. 5.3.5.5 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 BP plc

      2. 6.3.2 Shell plc

      3. 6.3.3 Chevron Corporation

      4. 6.3.4 Total Energies SE

      5. 6.3.5 Exxon Mobil Corporation

      6. 6.3.6 Oil and Natural Gas Corporation (ONGC)

      7. 6.3.7 China National Petroleum Corporation (CNPC)

      8. 6.3.8 Cairn Oil & Gas, Vertical of Vedanta Limited

      9. 6.3.9 Petroleo Brasileiro SA

      10. 6.3.10 Equinor ASA

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Untapped Oil and Gas Potential in Emerging Markets

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CAPEX Oil and Gas Industry Segmentation

Capital expenditure (CAPEX) is the funds used by a company/organization to acquire, upgrade, and maintain physical assets, such as property, plants, buildings, technology, or equipment. CAPEX is often used to undertake new projects or investments by a company. The global oil and gas CAPEX market consider the total capital expenditure of oil and gas operators worldwide annually. The CAPEX/investments in the upstream, midstream, and downstream oil and gas projects across different regions are taken into consideration while estimating the market size.

The oil & gas CAPEX market is segmented by sector, location and geography. By sector, the market is segmented into upstream, midstream, and downstream. By location, the market is segmented into onshore and offshore. The report also covers the market size and forecasts for the oil & gas CAPEX market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD).

Sector
Upstream
Midstream
Downstream
Location
Onshore
Offshore
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Russia
Norway
Netherlands
Rest of Europe
Asia-Pacific
China
India
Malaysia
Indonesia
ASEAN Countries
Rest of Asia-Pacific
South America
Brazil
Venezuela
Argentina
Colombia
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates (UAE)
Egypt
Nigeria
Rest of Middle East and Africa
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CAPEX Oil and Gas Market Research FAQs

The Oil and Gas CAPEX Market is projected to register a CAGR of 4.27% during the forecast period (2024-2029)

Exxon Mobil Corporation, BP PLC, Chevron Corporation, Shell Plc and TotalEnergies SE are the major companies operating in the Oil and Gas CAPEX Market.

Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Oil and Gas CAPEX Market.

The report covers the Oil and Gas CAPEX Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Oil and Gas CAPEX Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Oil and Gas CAPEX Industry Report

Statistics for the 2024 Oil and Gas CAPEX market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oil and Gas CAPEX analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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CAPEX Oil and Gas Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)