The global oil and gas logistics market is poised to surge by USD 4.56 billion between 2024 and 2028, expanding at a CAGR of 5.17%. This growth underscores a pivotal transformation in how energy commodities are transported, stored, and distributed—marking a new era in intermodal supply chains and digital logistics. In this 2025 Outlook and Comprehensive Guide, we dive deep into market dynamics, future-facing innovations, and actionable strategies to navigate this high-stakes sector.For more details about the industry, get the PDF sample report for free
“The transition from over-the-road to intermodal logistics is not just a cost decision—it’s a strategic imperative,” says JSenior Technavio Expert. “With rail terminals, pipelines, and containerized freight infrastructure expanding, companies are unlocking 20% savings and significantly reducing carbon footprints.”
A striking example is BNSF Railway’s $1.5 billion intermodal project in 2022, spanning 4,500 acres and designed to integrate rail yards, warehouses, and container facilities. This reflects a broader move toward sustainability and efficiency in the transport of crude oil, natural gas, and petrochemicals.
The onshore logistics segment is leading growth, driven by vast pipeline networks, highway transportation, and storage terminals that interconnect remote drilling fields with downstream refineries. This segment includes:
Crude oil transportation to refineries
Natural gas delivery to industrial users
Onsite supply of materials and personnel
With high-value assets such as railcars, trailers, and specialized trucks, the onshore market stood at USD 9.43 billion in 2018 and has been steadily climbing.
Get more details by ordering the complete report
Upstream Logistics: Moving rigs, drills, and teams to often-remote drilling sites.
Midstream Logistics: Transportation and storage from extraction to refining.
Downstream Logistics: Final delivery of refined fuels to end-use markets.
Type
North America will contribute 37% of the global market growth by 2028, led by the U.S. shale oil boom and advancements in hydraulic fracturing. With production expected to hit 3.9 million barrels per day (mb/d) by 2025, logistics networks must scale rapidly to meet demand.
US Market Focus: Expansion of shale plays and pipeline infrastructure is a logistical goldmine.
Energy Security: Heightened focus on domestic production is fueling demand for efficient midstream operations.
Contract Logistics Providers: Gaining traction by offering integrated services, especially in volatile terrains and regulatory-heavy jurisdictions.
Other regions,
For more details about the industry, get the PDF sample report for free
The replacement of coal-fired power plants with cleaner, natural gas-based systems is fueling demand. Lower gas prices and favorable policies (e.g., Germany’s CHP scheme) are catalyzing a move toward gas-powered electricity grids.
This shift creates a ripple effect—demand for efficient logistics to deliver natural gas from upstream fields to turbines becomes paramount. The race to deploy more efficient gas turbines has also intensified the need for high-end midstream and downstream logistics capabilities.
Blockchain: Ensures traceability and prevents fraud in cross-border shipments.
IoT: Enables real-time monitoring of pressure, temperature, and delivery times.
Automation: Drones and autonomous vehicles are streamlining upstream site inspections.
Experts forecast a 30% rise in automation adoption across logistics networks by 2028, with companies investing in smart warehouses and AI-enabled supply chain platforms.
Mini Case Study:
In early 2024, a Texas-based gas station chain faced severe delivery delays after storms disrupted trucking routes from regional refineries. With no alternative intermodal setup in place, retail outlets saw a 17% drop in sales. In contrast, a competitor that integrated rail terminals into their logistics strategy maintained normal operations—highlighting the value of diversified freight solutions.
Get more details by ordering the complete report
Blockchain: Ensures traceability and prevents fraud in cross-border shipments.
IoT: Enables real-time monitoring of pressure, temperature, and delivery times.
Automation: Drones and autonomous vehicles are streamlining upstream site inspections.
Experts forecast a 30% rise in automation adoption across logistics networks by 2028, with companies investing in smart warehouses and AI-enabled supply chain platforms.
Invest in Intermodal Infrastructure
Diversify beyond trucking to include rail, pipeline, and even coastal marine solutions.
Prioritize Digital Transformation
Adopt predictive analytics, IoT sensors, and real-time dashboards for supply chain visibility.
Build Strategic Alliances
Partner with contract logistics providers that specialize in upstream and midstream services.
Enhance Emergency Preparedness
Create contingency plans for natural disasters, regulatory delays, or geopolitical events.
Focus on Sustainability Metrics
Reduce scope 3 emissions and adopt ESG-compliant logistics practices to attract investors.
The oil and gas logistics market is characterized by its complex and multifaceted supply chain, involving the efficient movement of crude oil, natural gas, and refined products such as gasoline, diesel, and jet fuel. Central to this network are pipelines, interstate pipelines, and pipeline infrastructure that ensure consistent flow from onshore sites and offshore rigs to critical storage facilities and distribution centers. Transportation vehicles including trucks, tanker trucks, railroads, and railcars serve as key transportation assets, supported by specialized rail terminals, loading facilities, and unloading facilities. Modular refineries and refinery materials are strategically integrated to process hydrocarbon reserves, while delivery systems and logistics providers work in tandem to optimize the routing and scheduling of fuel distribution. The emergence of blockchain technology in this sector further enhances transparency and efficiency across the logistics solutions landscape.
“By 2028, we expect at least 60% of oil and gas logistics firms to implement full supply chain digitization,” forecasts Senior Technavio Expert. “Those who resist the shift may find themselves outpaced by agile, tech-enabled competitors.”
For more details about the industry, get the PDF sample report for free
Comprehensive research into the oil and gas logistics market reveals the importance of robust freight transportation systems and contract logistics services that cater to the distribution of petrochemical products to industrial users. Courier services and customs agents facilitate international transactions, especially for high-value goods like industrial gas, syngas processing units, and oilfield discoveries. On-site operations rely heavily on drilling equipment and crude by rail services, while terminals and transportation networks enable steady movement to and from refinery and syngas production locations. The market is also influenced by the handling and distribution of wholesale CO2, highlighting the integration of both upstream and downstream logistics. In parallel, innovations in logistics strategies ensure that goods are effectively moved through all stages, from raw extraction at onshore and offshore locations to final delivery at industrial and commercial endpoints, maintaining operational excellence across the value chain.
As energy demands grow and logistics become more complex, companies must act decisively. The oil and gas logistics market is no longer just about transportation—it’s about orchestrating a robust, tech-driven supply chain that delivers cost savings, resilience, and sustainability.
Get more details by ordering the complete report
Safe and Secure SSL Encrypted
One user only.
Quick & easy download option
Unlimited user access (Within your organization).
Complimentary Customization Included
*For Enterprise license, go to checkout page
Get the report (PDF) sent to your email within minutes.
