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

The United Kingdom Oil and Gas Market is Segmented by Sector (Upstream, Downstream, and Midstream). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

UK Oil & Gas Market Size

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United Kingdom Oil and Gas Market- Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 319.52 Billion
Market Size (2029) USD 341.66 Billion
CAGR (2024 - 2029) 1.35 %
Market Concentration Low

Major Players

United Kingdom Oil and Gas Market- Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UK Oil & Gas Market Analysis

The United Kingdom Oil And Gas Market size is estimated at USD 319.52 billion in 2024, and is expected to reach USD 341.66 billion by 2029, growing at a CAGR of 1.35% during the forecast period (2024-2029).

  • Over the medium term, the country's increasing oil and gas production and increasing investments in oil and gas infrastructure developments are expected to drive the market studied during the forecast period.
  • On the other hand, the growth of renewable energy technologies and volatility in oil and gas prices due to recent geopolitical developments are expected to restrain the growth of the market studied during the forecast period.
  • Nevertheless, the discovery of new oil and gas fields across the country is expected to create significant opportunities in the market studied during the forecast period.

UK Oil & Gas Market Trends

Upstream Segment Expected to Dominate the Market

  • The United Kingdom has significant oil and gas reserves in the North Sea, which have been a major production source for several decades. Although the reserves have declined, they still present a substantial resource base that requires ongoing exploration and production efforts.
  • The United Kingdom has a well-developed infrastructure for offshore exploration and production in the North Sea. This infrastructure includes offshore platforms, pipelines, and storage facilities. The presence of this infrastructure provides a competitive advantage for upstream companies as it enables efficient extraction and transportation of oil and gas resources.
  • Moreover, the United Kingdom has a long history of offshore oil and gas operations in the North Sea, resulting in the development of significant technical expertise in the exploration and production of oil and gas resources. The industry has accumulated knowledge and experience in areas such as drilling techniques, reservoir management, and production optimization. This expertise gives the United Kingdom an advantage in upstream activities.
  • According to the statistical review of world energy, the United Kingdom produced 778 thousand barrels per day of crude oil in 2022, a decrease of almost 11% compared to 2021. The primary reason for this decline is the declining reserves in the North Sea. To counter this, companies in the United Kingdom have started exploring other regions for oiling gas production.
  • For instance, in February 2023, Delta Energy, a local upstream player in the United Kingdom, announced that they had made a significant oil and gas discovery at the Pensacola region on license P2252. The company claims that the potential natural gas reservoir has more than 300 bcf of natural gas in the reservoir.
  • Therefore, as per the points mentioned above, the upstream sector in the United Kingdom is expected to dominate the oil and gas market during the forecast period.
United Kingdom Oil and Gas Market- Market : Oil Production, in thousand barrels per day, United Kingdom, 2018-2022

Growth of Renewables Expected to Restrain the Market

  • The United Kingdom has set ambitious targets to transition to a low-carbon economy. Government policies and regulations such as carbon pricing, renewable energy incentives, and stricter emission standards are designed to promote the development and adoption of renewable energy sources. These policies may reduce demand for oil and gas, particularly in sectors where renewable alternatives are feasible, such as power generation and transportation.
  • Moreover, as the renewable energy sector continues to expand, it attracts significant investment. This can divert capital from the oil and gas industry, making it more challenging for traditional oil and gas projects to secure funding. Investors may view renewable energy projects as more financially viable and environmentally sustainable in the long term, leading to a reduction in investment in new oil and gas exploration and production projects.
  • For instance, according to the International Renewable Energy Agency, in 2022, the installed renewable energy capacity in the United Kingdom increased by more than 7% compared to 2021. In 2022, the total renewable energy installed capacity crossed 52 GW compared to 48.9 GW in 2021.
  • In December 2022, Vestas announced that it had received an order for 108 MW for the Limekiln project owned by Infinergy in the United Kingdom. The work scope includes installing, supplying, and commissioning V136-4.5 MW turbines. The total number of turbines is nearly 24. The installation and commissioning is expected to be completed by 2024.
  • The growth of renewable energy can lead to a decline in demand for fossil fuels, including oil and gas. Renewable energy sources such as wind, solar and hydroelectric power are becoming increasingly cost-competitive and are considered more environment-friendly. This shift in energy consumption patterns can reduce the overall demand for oil and gas, particularly in sectors that can readily switch to renewable alternatives.
  • Therefore, as per the points discussed above, the increasing adaption of renewable energy sources is expected to hinder the growth of the UK oil and gas market during the forecast period.
United Kingdom Oil and Gas Market- Market : Renewable Energy Installed Capacity, in GW, United Kingdom, 2018-2022

UK Oil & Gas Industry Overview

The UK oil and gas market is fragmented. Some of the key players in the market (in no particular order) include Shell PLC, BP PLC, TotalEnergies SE, Chevron Corporation, and Cadent Gas Ltd.

UK Oil & Gas Market Leaders

  1. TotalEnergies SE

  2. Chevron Corporation

  3. Cadent Gas Ltd

  4. Shell PLC

  5. BP PLC

*Disclaimer: Major Players sorted in no particular order

United Kingdom Oil and Gas Market- Market Concentration
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UK Oil & Gas Market News

  • May 2023: Shell PLC, a major oil and gas company from the United Kingdom, and big-data analytics company SparkCognition announced their collaboration, stating that Shell will leverage artificial intelligence-based technology to enhance offshore oil exploration and production in deep-sea exploration and production.
  • May 2022: BP PLC, one of the major oil and gas companies, announced that they are going to invest USD 22.5 billion in the oil and gas fields located in the North Sea by the end of 2030 to ramp up production activities in the region with decreased emissions. This will help the United Kingdom boost its energy security and sustainably meet its increased energy demands.

UK Oil & 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 and Natural Gas Production and Forecast, till 2028

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

        1. 4.6.1.1 Domestic Oil and Gas Production

        2. 4.6.1.2 Investments in Oil and Gas Infrastructure Development

      2. 4.6.2 Restraints

        1. 4.6.2.1 Growth of Renewable Energy

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Sector

      1. 5.1.1 Upstream

      2. 5.1.2 Midstream

      3. 5.1.3 Downstream

  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 Shell PLC

      2. 6.3.2 BP PLC

      3. 6.3.3 TotalEnergies SE

      4. 6.3.4 Chevron Corporation

      5. 6.3.5 Cadent Gas Ltd

      6. 6.3.6 ESSO UK Limited

      7. 6.3.7 BG Group Limited

      8. 6.3.8 Valaris PLC

      9. 6.3.9 Centrica PLC

      10. 6.3.10 Dana Petroleum E&P Limited

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

    1. 7.1 Discovery of New Oil and Gas Fields

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UK Oil & Gas Industry Segmentation

The oil and gas industry refers to the sector involved in the exploration, extraction, refining, transportation, and distribution of petroleum products, natural gas, and related resources. It encompasses various activities and processes that are essential for the production and utilization of hydrocarbon-based energy sources.

The UK oil and gas market is segmented by sector. By sector, the market is segmented into upstream, downstream, and midstream. The report offers the market size in value terms in USD for all the abovementioned segments.

Sector
Upstream
Midstream
Downstream
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UK Oil & Gas Market Research FAQs

The United Kingdom Oil And Gas Market size is expected to reach USD 319.52 billion in 2024 and grow at a CAGR of 1.35% to reach USD 341.66 billion by 2029.

In 2024, the United Kingdom Oil And Gas Market size is expected to reach USD 319.52 billion.

TotalEnergies SE, Chevron Corporation, Cadent Gas Ltd, Shell PLC and BP PLC are the major companies operating in the United Kingdom Oil And Gas Market.

In 2023, the United Kingdom Oil And Gas Market size was estimated at USD 315.21 billion. The report covers the United Kingdom Oil And Gas Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Oil And Gas Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Oil and Gas in UK Industry Report

Statistics for the 2024 Oil and Gas in UK market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oil and Gas in UK 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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UK Oil and Gas Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)