Oil and Gas Logistics Market Size to grow by USD 4.56 billion between 2024-2028

The Oil and Gas Logistics Market is segmented by Application (Onshore and Offshore), Type (Pipeline, Railroads, and Tanker and trucks), and Geography (North America, Middle East and Africa, Europe, APAC, and South America). As per the Global Forecast research report 2024-2028 published by Technavio, the market size is estimated to grow by USD 4.56 billion, at a CAGR of 5.17% during the forecast period. There are several companies that are contributing to the market as per this report. Replacement of coal-fired power plants by natural gas-based power plants .

By Application, the Onshore segment is projected to dominate the market size in 2024

The onshore segment of the oil and gas logistics market encompasses a comprehensive range of onshore crude oil and refined product infrastructure, including pipelines, terminals, trucks, railcars, and rail loading and unloading facilities. These assets, in conjunction with other means of transportation owned by the company or third parties, are utilized to cater to client and business requirements. Onshore facilities and transportation assets are intricately connected, with services extending to the transportation and delivery of crude oil and gases to refineries and industrial users. Additionally, these services facilitate the linkage of producers to extensive interstate pipelines and refineries. Trucks, trailers, and railcars are employed for the transportation of crude oil and petroleum products to consumers, while railcar loading and unloading activities at crude-by-rail terminals and industrial gas activities such as wholesale CO2 selling and syngas processing are also integral components of onshore logistics solutions.

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By Type, Pipeline segment is expected to hold the largest market size for the year 2024

In the oil and gas industry, pipelines serve as a primary mode of transportation for both crude oil and refined petroleum products. According to industry data, approximately 70% of crude oil and petroleum products in the US, and 90% of natural gas and petroleum products in Canada, are transported via pipelines. This encompasses both long-distance inter- and intra-state transmission systems, as well as local or regional gathering systems that aggregate production for delivery into common carrier transmission networks. However, the market for pipeline transportation faces challenges due to insufficient pipeline capacity and the increasing preference for railroad transportation methods for oil and gas. Moreover, transportation costs have escalated, adding to the market's woes.

Why is North America forecasted to hold the largest regional market size in 2024?

The North American market holds significant revenue potential in the global oil and gas industry, with the United States being a major contributor due to its substantial natural gas reserves, particularly unconventional ones in shale formations. However, the exploration of these reserves, located in ultra-deep offshore areas and requiring advanced hydraulic fracturing and horizontal drilling technologies, comes with high production costs. Despite these challenges, the US is projected to produce 3.9 million barrels per day (mb/d) of shale oil by 2025, positioning North America as a leading producer of oil and gas products in the coming years.

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Research Analysis Overview

The Oil and Gas Logistics Market encompasses the transportation, storage, and distribution of hydrocarbon reserves, including oil and extracted natural gas, from offshore and onshore extraction sites to various end-users such as homes, gas stations, distribution centers, processing plants, refineries, and the production of petrochemical products. With the increasing number of oilfield discoveries, the demand for high-end logistics solutions has surged. Offshore oil rigs require specialized logistics to transport drilling equipment and large machinery to remote locations. Onshore drilling sites also necessitate the movement of equipment and materials. The integration of blockchain technology in supply chain solutions enhances transparency and security in the oil and gas logistics market. Transportation vehicles, including trucks, ships, and pipelines, play a crucial role in the oil and gas logistics market. The extraction site to refinery process involves the transportation of crude oil, followed by the refining of oil into refined products such as gasoline, diesel, and jet fuel. Additionally, the transportation of modular refinery materials and petrochemical products is a significant aspect of the oil and gas logistics market. Contract logistic service providers offer comprehensive solutions, ensuring the efficient and timely delivery of goods and services, making them an essential partner in the oil and gas industry.

Market Research Overview

The Oil and Gas Logistics Market is a segment of the broader Global Air Freight and Logistics Market, which encompasses the revenue generated by companies offering air freight transportation, courier services, and logistics solutions, such as package and mail delivery and customs agents, within the larger Global Transportation Market (Technavio, 2021). Technavio's market analysis calculates the size of the Global Air Freight and Logistics Market based on the revenues generated by these service providers. Key growth drivers for this market include the surge in cross-border e-commerce activities, where customers purchase goods from outside their country, necessitating efficient logistics solutions for timely delivery. - The Oil and Gas Logistics Market is experiencing significant growth, fueled by the . Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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