Mordor Intelligence has published a new report on the US Oil & Gas Upstream Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The United States oil and gas upstream market is poised for growth, expected to increase from 12.4 million barrels per day in 2024 to 13.8 million barrels per day by 2029, with a compound annual growth rate (CAGR) of 2.3%. Key drivers include expanding activities in the Gulf of Mexico, significant investment in the Permian Basin, and increasing adoption of advanced exploration technologies. However, challenges such as volatile oil prices and high production costs for unconventional resources may hinder market growth.
Key Trends
1. Dominance of the Onshore Segment
The onshore segment continues to lead the US oil and gas upstream market due to robust production in major basins:
- In 2022, US crude oil production averaged 11.9 million barrels per day, while natural gas output grew by 4% to 4.9 million cubic feet daily.
- The Permian, Appalachia, and Haynesville basins accounted for 60% of national production, showcasing the importance of onshore operations.
- Notable developments include the Railroad Commission of Texas issuing 963 drilling permits in May 2022, up from 631 in May 2021, and INEOS Energy’s USD 1.4 billion acquisition of Chesapeake assets in the Eagle Ford shale.
2. Surge in Deepwater Activities
Deepwater projects in the Gulf of Mexico are a significant growth driver:
- Decreased costs of drilling rigs and shorter investment return periods have revitalized offshore activities.
- Recent contracts, such as Transocean’s ultra-deepwater drillship projects with Murphy Oil, valued at USD 181 million, highlight increasing activity.
- ExxonMobil’s discoveries at the Sailfin-1 and Yarrow-1 wells are expected to enhance its development portfolio significantly.
3. Advancements in Exploration Technologies
Technological innovations in exploration and drilling, including advanced seismic imaging and horizontal drilling, are driving efficiency and reducing operational costs. These advancements are particularly impactful in deepwater operations, helping operators maximize production from complex reserves.
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Market Segmentation
The US Oil & Gas Upstream Market is segmented by Location of Deployment:
- Onshore:
- Key contributors include the Permian, Appalachia, and Haynesville basins.
- Growing investment in shale exploration and unconventional resources.
- Offshore:
- Dominated by deepwater projects in the Gulf of Mexico.
- Increasing discoveries and development of ultra-deepwater reserves.
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Key Players
The US oil and gas upstream market features key players actively investing in exploration and production to maintain leadership. Major companies include ExxonMobil Corporation, Chevron Corporation, BP Plc, Royal Dutch Shell Plc, and TotalEnergies SE.
- ExxonMobil Corporation: Focused on offshore exploration, with significant discoveries in the Gulf of Mexico and Guyana.
- Chevron Corporation: Expanding deepwater capabilities and increasing investments in shale production.
- BP Plc: Known for strategic offshore projects and strong sustainability commitments.
- Royal Dutch Shell Plc: A leader in integrated operations, emphasizing technological innovation.
- TotalEnergies SE: Actively involved in onshore and offshore projects, leveraging advanced drilling technologies.
These companies are leveraging technology and strategic investments to enhance production efficiency and expand their portfolios.
Conclusion
The United States oil and gas upstream market is set for steady growth, driven by increasing production in the Permian Basin, expanding deepwater activities in the Gulf of Mexico, and technological advancements in exploration. While challenges such as volatile oil prices and unconventional resource costs persist, the market’s robust infrastructure and innovation ensure resilience. As major players continue to invest and adapt to evolving energy demands, the upstream sector remains critical to meeting domestic and global energy needs.
Industry Related Reports
Midstream Oil and Gas Market: The report provides insights into Global Midstream Oil and Gas Companies and is segmented by Sector (Transportation, Storage, and Terminals) and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East & Africa).
UAE Oil and Gas Upstream Market: Upstream refers to the stages in the oil and gas industry focused on exploration and production activities. The industry is typically divided into three segments: upstream, midstream, and downstream. Upstream companies primarily handle the exploration and initial production phases. The United Arab Emirates oil and gas upstream market is segmented by location of deployment, categorized into Onshore and Offshore operations.
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