Over the recent years, several oil & gas infrastructure market contenders have been depicting a keen interest in the adoption of various initiatives such as mergers, acquisitions, partnerships, and product developments to strengthen their industry foothold. In addition, many companies are engaging in research activities for gaining a deeper understanding of various production processes.
TotalEnergies, Baker Hughes, Centrica plc, Exxon Mobil Corporation, ConocoPhillips Company, Occidental Petroleum Corporation, WILLIAMS, Shell, Enterprise Products Partners L., Kinder Morgan, Schlumberger Limited, and others are some of the major players in the oil & gas infrastructure market.
As per the latest research conducted by Global Market Insights Inc., the global oil & gas infrastructure market size is anticipated to reach USD 1,117 billion revenue by 2030.
Europe to emerge as a key revenue pocket: Increase in infrastructure projects
The European Union lately announced its plans for redrawing the energy map of the region for easing heavy reliance on natural gas from Russia. Accordingly, a new pipeline built during the SARS-CoV-2 pandemic would ensure the flow of large gas volumes between Greece and Bulgaria for the generation of electricity, heating homes, and the fuel industry.
The link takes on greater significance post Russia’s April 2022 decision for cutting off natural gas supplies to Bulgaria and Poland over a ruble payments demand coming from Western sanctions over the Ukraine war. The first of the numerous planned gas inter-connectors, the project that would help in granting countries hopeful of joining the 27-nation bloc and the eastern European Union members access to the global gas market.
The continent is also recording an increase in favorable government policies which is extending its position as a regional leader in the overall oil and gas infrastructure market. For instance, in December 2020 the European Union formulated rules for prolonging the support of the EU for some cross-border natural gas projects.
The Union’s “TEN-E” rules define which cross-border energy projects would be eligible for the receipt of certain fast-tracked permits as well as EU funding.
The Commission proposed a rewrite of the rules that guided USD 5.71 billion in to energy projects over the past decade. These included gas pipelines as well as power grids.
Formulation of infrastructure plans in North America
The North America market is expected to record lucrative growth over 2022-2030. The rise can be credited to an increase in the formulation of numerous plans by various government bodies and the increasing participation by oil and gas infrastructure companies.
An instance of the same is the USD 1 trillion bipartisan infrastructure plan in the U.S. Of the allotted amount, nearly USD 33 million would go toward cleaning up 277 of the 15,000 abandoned gas and oil wells. The States further indicated that an amount of over USD 8 billion would be required for cleaning 130,000 additional orphaned wells.
Considering the industry landscape in other regions, the Latin America oil & gas infrastructure market share is anticipated to exceed USD 125 billion until 2030.
Way Ahead
The forthcoming years are slated to register an escalating development of the refineries, overhaul, renovation, replacement, and the improvement of pipeline networks across the globe. This is further poised to be accompanied by the growing natural gas liquids capacity for supplying numerous end use products including solvents, synthetic rubber, gasoline, detergent, plastics, home heating, and others. These aspects are expected to impel the demand for infrastructure development in the oil & gas industry across various regions.