UK Oil & Gas Market Size
| 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
*Disclaimer: Major Players sorted in no particular order |
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.
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.
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
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TotalEnergies SE
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Chevron Corporation
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Cadent Gas Ltd
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Shell PLC
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BP PLC
*Disclaimer: Major Players sorted in no particular order
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. 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 Market Size and Demand Forecast in USD, till 2028
4.3 Crude Oil and Natural Gas Production and Forecast, till 2028
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Domestic Oil and Gas Production
4.6.1.2 Investments in Oil and Gas Infrastructure Development
4.6.2 Restraints
4.6.2.1 Growth of Renewable Energy
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Sector
5.1.1 Upstream
5.1.2 Midstream
5.1.3 Downstream
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 Shell PLC
6.3.2 BP PLC
6.3.3 TotalEnergies SE
6.3.4 Chevron Corporation
6.3.5 Cadent Gas Ltd
6.3.6 ESSO UK Limited
6.3.7 BG Group Limited
6.3.8 Valaris PLC
6.3.9 Centrica PLC
6.3.10 Dana Petroleum E&P Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Discovery of New Oil and Gas Fields
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 |
UK Oil & Gas Market Research FAQs
How big is the United Kingdom Oil And Gas Market?
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.
What is the current United Kingdom Oil And Gas Market size?
In 2024, the United Kingdom Oil And Gas Market size is expected to reach USD 319.52 billion.
Who are the key players in United Kingdom Oil And Gas Market?
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.
What years does this United Kingdom Oil And Gas Market cover, and what was the market size in 2023?
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.
What are the key trends driving the UK Oil and Gas Market?
The key trends driving the UK Oil and Gas Market are a) Technological advancements in exploration and production b) Increasing focus on LNG infrastructure and exports, and efforts to enhance energy security through domestic production c) Discovery of new oil and gas fields
Oil and Gas in UK Industry Report
The United Kingdom鈥檚 oil and gas market is a significant contributor to the national GDP, segmented into upstream, midstream, and downstream sectors. The market size and market share are critical aspects of the industry, with the downstream segment, led by the transport sector, heavily consuming oil. This influences market dynamics and market trends significantly. The UK's oil and gas production is primarily concentrated on offshore extraction in the upstream market, showcasing robust offshore infrastructure and subsea technology expertise. Numerous oil and gas companies are focusing on increasing domestic production to boost energy security and decrease dependency on imported energy, which often has a higher carbon footprint.
Advanced recovery techniques and the development of onshore sites demonstrate an active industry efficiently tapping into new and existing reserves. Market analysis and market research highlight a commitment to technological innovation, enabling the industry to adapt and flourish amidst changing global energy needs and environmental concerns. Detailed industry reports and market reports provide comprehensive market analysis and market forecast, offering insights into market growth and market segmentation.
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