Italy Oil And Gas Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 89.37 Thousand barrels per day |
| Market Volume (2029) | 94.55 Thousand barrels per day |
| CAGR (2024 - 2029) | 1.13 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Italy Oil And Gas Market Analysis
The Italy Oil And Gas Market size in terms of production volume is expected to grow from 89.37 Thousand barrels per day in 2024 to 94.55 Thousand barrels per day by 2029, at a CAGR of 1.13% during the forecast period (2024-2029).
Over the medium term, factors such as supportive government policies and developed oil and gas infrastructure are expected to drive the market during the forecasted period.
On the other hand, increasing penetration of renewable energy is likely to restrain the growth of the oil and gas market during the forecasted period.
Nevertheless, untapped offshore oil and gas prospects in the country are expected to create significant opportunities.
Italy Oil And Gas Market Trends
The Midstream Segment Expected to Dominate the Market
- The Midstream segment focuses on transporting, storing, and distributing oil and gas products. As Italy aims to enhance its energy infrastructure, investing in pipelines, storage facilities, and terminals is crucial. Developing a robust midstream infrastructure ensures efficient movement of oil and gas from production sites to refineries and end consumers.
- Italy has increasingly relied on natural gas as a cleaner alternative to coal and oil. Natural gas requires an extensive midstream infrastructure to transport it from production fields or import terminals to distribution networks, power plants, and industrial consumers. The growth in natural gas demand, driven by environmental regulations and the shift towards cleaner energy sources, amplifies the importance of the midstream segment.
- Italy is a significant importer of crude oil and natural gas. The midstream segment is crucial in receiving, storing, and distributing imported oil and gas, ensuring a steady supply to meet domestic demand. Similarly, for natural gas exports, a well-developed midstream infrastructure is necessary to transport the gas to international markets.
- According to the Energy Institute Statistical Review of World Energy, the import of LNG in the country has increased significantly in recent years. In 2022, the imports increased by more than 50% compared to 2021, with an increase of 7.2% annually in the past decade.
- Moreover, in May 2023, the Italian Government announced that the newly established floating liquefied natural gas (LNG) terminal at the Tuscan port of Piombino would commence its commercial operations by the end of May. Venier further disclosed that the terminal is expected to offer approximately 2 billion cubic meters (bcm) of gas this year and around five bcm in the following year.
- Owing to such developments, the midstream sector is expected to have the highest share during the forecast period.
Growth of Renewables Expected to Restrain the Market
- Like many other countries, Italy is actively transitioning towards renewable energy sources to reduce carbon emissions and combat climate change. The government has implemented supportive policies and incentives to promote developing and adopting renewable energy technologies such as solar, wind, and hydropower. As renewable energy becomes more cost-effective and technologically advanced, there is a shift in energy consumption patterns, reducing dependence on fossil fuels like oil and gas.
- The expanding renewable energy sector poses increasing competition to the traditional oil and gas market. Renewables are becoming more competitive in terms of cost, efficiency, and reliability. As the costs of solar and wind power continue to decline, they are increasingly preferred for electricity generation, making them attractive alternatives to fossil fuels. This competition from renewables limits the growth potential of the oil and gas market.
- According to the International Renewable Energy Agency, renewable energy installations have increased significantly in recent years. In 2022, the total installed renewable installed capacity was 59.89 GW, showing a growth rate of more than 5% compared to 2021.
- Moreover, the Italian government is actively promoting and supporting renewable energy initiatives. This support includes financial incentives, feed-in tariffs, and subsidies for renewable energy projects. Such support further accelerates the development and adoption of renewables, making them more attractive options for investors and energy consumers. As a result, investments in oil and gas projects may need help due to the increasing preference for renewable energy sources.
- For instance, in May 2023, Italy's energy services operator, Gestore dei Servizi Energetici (GSE), declared the winners of its latest call for renewable energy capacity, encompassing wind, solar, and hydropower projects totaling 422 MW. This competition marks the 11th round of tenders in the region to promote and implement renewable energy generation.
- Thus, the renewable energy sector development would be a significant restraint for the market during the forecast period.
Italy Oil And Gas Industry Overview
The Italian oil and gas market is moderately consolidated. Some of the major players in the market (in no particular order) include Eni SpA, Edison SpA, Engie SA, SGS Italia SpA, and BP PLC, among others.
Italy Oil And Gas Market Leaders
Eni SpA
SGS Italia S.p.A.
BP plc
Edison SPA
Engie SA
*Disclaimer: Major Players sorted in no particular order
Italy Oil And Gas Market News
- June 2023: The Italian and German governments have agreed to proceed with the development of a planned gas pipeline, which will also facilitate hydrogen transportation between the two countries. This project, spanning approximately 3,300 kilometers, is spearheaded by four European transmission system operators: Snam, Trans Austria Gasleitung, Gas Connect Austria, and Bayernets in Germany.
- January 2023: Italy's state-run energy company, ENI, entered into a significant agreement worth USD 8 billion with Libya's National Oil Corporation. The deal aims to develop two offshore gas fields in Libya, aligning with the efforts of European nations to reduce their reliance on Russian energy sources. Under the agreement, ENI will support the development of the two offshore fields, with production anticipated to commence in 2026. ENI estimates that these fields have the potential to yield approximately 7.5 billion cubic meters of gas annually. This amount surpasses two-thirds of the gas volume that Italy imported from Russia last year, showcasing the potential for decreased dependence on Russian energy supplies.
Italy Oil And Gas Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Italy Oil and Gas Production Forecast in Thousand Barrels Per Day, Till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Higher Demand for Oil & Gas in the Country
4.5.1.2 Growing Infrastructure Development
4.5.2 Restraints
4.5.2.1 Competition from Renewable Energy
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Sector
5.1.1 Upstream
5.1.2 Downstream
5.1.3 Midstream
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Eni SpA
6.3.2 Edison SpA
6.3.3 Engie SA
6.3.4 SGS Italia SpA
6.3.5 BP PLC
6.3.6 TotalEnergies SE
6.3.7 Zenith Energy Ltd (CA)
6.3.8 Shell PLC
6.3.9 Saipem SpA
6.3.10 Schlumberger NV
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Presence of Untapped Offshore Locations
Italy Oil And Gas Industry Segmentation
The oil and gas market refers to the global industry involved in the exploration, production, refining, transportation, and distribution of oil and natural gas resources. It encompasses various activities and sectors related to the extraction and utilisation of hydrocarbon reserves.
The Italy oil and gas market is segmented by sector. By sector, the market is segmented into upstream, midstream, and downstream.
For each segment, market sizing and forecasts have been done based on production (thousand barrels per day).
| Sector | |
| Upstream | |
| Downstream | |
| Midstream |
Italy Oil And Gas Market Research FAQs
How big is the Italy Oil And Gas Market?
The Italy Oil And Gas Market size is expected to reach 89.37 thousand barrels per day in 2024 and grow at a CAGR of 1.13% to reach 94.55 thousand barrels per day by 2029.
What is the current Italy Oil And Gas Market size?
In 2024, the Italy Oil And Gas Market size is expected to reach 89.37 thousand barrels per day.
Who are the key players in Italy Oil And Gas Market?
Eni SpA, SGS Italia S.p.A., BP plc, Edison SPA and Engie SA are the major companies operating in the Italy Oil And Gas Market.
What years does this Italy Oil And Gas Market cover, and what was the market size in 2023?
In 2023, the Italy Oil And Gas Market size was estimated at 88.36 thousand barrels per day. The report covers the Italy Oil And Gas Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Italy Oil And Gas Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Italy Oil And Gas Industry Report
Statistics for the 2024 Italian Oil and Gas market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Italian Oil and Gas analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
