Oil Pipeline Infrastructure Market Size - By Application (Onshore, Offshore), By Operation (Transmission, Gathering), By Diameter {≤ 8 Inch, >8-24 Inch, > 24 Inch), & Global Forecast, 2023 - 2032

Oil Pipeline Infrastructure Market Size

Oil Pipeline Infrastructure Market size was valued at over USD 670 billion in 2022 and is anticipated to grow over USD 920 billion in 2032. The increasing global energy demand and the necessity to ensure energy security have created a need for a robust pipeline network.
 

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The development of infrastructure has significant impacts on various economic factors, including GDP growth, employment opportunities, and the functioning of businesses reliant on the supply of crude oil and refined petroleum products. The pipeline construction sector has faced challenges due to the volatility of the energy market and the decline in crude oil prices over the past few years. However, with the recovery of oil prices and the booming production from multiple oil fields, there is now a growing demand for expanding the pipeline network.
 

Investments in Exploration & Production (E&P) activities have been increasing, and the discovery of oil-rich fields worldwide. For instance, in 2019, the U.S. witnessed a significant surge in shale production, reaching a record high of over 8.4 million barrels per day, as reported by the EIA. Additionally, China has reported the discovery of new shale oil reserves in the northern Tianjin municipality.
 

COVID-19 Impact

The COVID-19 pandemic has had a significant impact on the oil pipeline infrastructure market affecting the overall expansion of the industry adversely. The pandemic resulted in a sharp decline in global oil demand due to lockdown measures, travel restrictions, and reduced economic activity. This decline in demand led to an oversupply of oil and a subsequent drop in oil prices. As a result, there was reduced urgency to invest in pipeline infrastructure projects. Many oil pipeline infrastructure projects faced delays or cancellations due to the economic uncertainty caused by the pandemic. The economic downturn and lower oil prices put financial pressure on oil companies and infrastructure developers. In addition, the pandemic highlighted the need for a transition towards cleaner and more sustainable energy sources.
 

Oil Pipeline Infrastructure Market Trends

The market is experiencing progression due to the increasing energy demand driven by rapidly growing economies. Globalization has played a significant role in boosting international trade, leading to a higher demand for dependable infrastructure. Major oil-rich economies like Saudi Arabia, Iran, and Iraq are making substantial investments in expanding their infrastructure to facilitate exports and ensure a reliable flow of resources to meet the demand from key centers. The industry is further being driven by the ongoing need to replace aging oil and gas infrastructure, which aims to improve the efficiency and cost-effectiveness of transportation. The rapid pace of commercialization and industrialization in these regions has spurred infrastructural development, including the expansion of extensive gathering and trunk line networks to facilitate both intrastate and interstate trade. Additionally, there is a growing focus on refurbishing and repairing the existing pipeline network to mitigate the risks associated with spills and theft.
 

Oil Pipeline Infrastructure Market Analysis

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The oil pipeline infrastructure market is segmented into onshore and offshore based on application. Onshore oil pipeline infrastructure held a market value of over USD 430 billion in 2022 and is anticipated to witness a market value over USD 575 billion by 2032. The growing global energy demand, particularly in emerging economies. As economies develop and industrialize, there is a greater need for efficient transportation of oil to meet the rising energy requirements. The development of onshore pipeline infrastructure supports economic activities, including industrial operations, power generation, and transportation sectors. Moreover, the discovery and development of new oil reserves, both conventional and unconventional, contribute to the need for onshore pipelines to transport the extracted oil.
 

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Transmission pipelines obtain a major oil pipeline infrastructure market share of over 66% in 2022 and is anticipated to grow at a CAGR of over 3% by 2032 driven by factors such as increased oil production, the need for reliable supply routes, and the development of new oil fields. Existing transmission oil pipelines are being upgraded and modernized to improve efficiency, safety, and environmental performance. This includes the use of advanced monitoring systems, leak detection technologies, and pipeline integrity management practices. This includes the use of smart pipeline systems, remote monitoring and control, and predictive analytics for maintenance and asset management. In addition, stricter regulatory requirements pertaining to pipeline safety, environmental protection, and social responsibility.
 

Oil pipeline infrastructure market, based on diameter, is segmented in ≤ 8 Inch, >8-24 Inch and > 24 Inch pipes. Medium size pipelines ranging from 8 to 24 inches will witness a substantial rise in deployment in the coming years owing to the rapid industrialization and advancements in exploration and production (E&P) technology. Governments have allocated funds to advance and expand existing pipeline networks. These pipelines are commonly used as trunk lines to facilitate trade within and between countries. In addition, the growing international trade of oil has contributed to the demand for pipelines in this size range. As countries engage in global export and import of oil, these pipelines serve as vital conduits for cross-border transportation, supporting energy security and economic cooperation.
 

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North America oil pipeline infrastructure market is expected to witness a substantial development at a CAGR of over 2.5% by 2032, owing to a substantial rise in investments by the government for the advancement and addition of greenfield infrastructure to bring resources to the industry. The rise in E&P investments across the U.S., which has led to an increase in rig count, will further drive the development of additional pipeline infrastructure. The economic development of previously disconnected resources has been facilitated by the introduction of technologies like directional drilling and hydraulic fracturing. The transmission capacity is set to increase further with the accelerated production from the Utica and Marcellus shale plays.
 

In the distribution sector, steady progress is anticipated as existing infrastructure is developed to comply with ongoing regulatory changes. Anti-pipeline sentiments, opposition from activist groups, and environmental concerns have posed challenges in obtaining clearance and developing pipeline projects. However, the U.S. government has demonstrated effectiveness in securing project approvals from the Federal Energy Regulatory Commission (FERC).
 

Oil Pipeline Infrastructure Market Share

Major players operating in the oil pipeline infrastructure market include:

• Welspun, CRC Evans
• Exxon Mobil Corporation
•  PetroChina Company Limited
•  General Electric
•  ENBRIDGE INC
• DCP Midstream LLC
•  NOV
• EUROPIPE GmbH
•  Chevron Corporation
•  EnLink Midstream LLC
•  Petrobras
•  Indian Oil Corporation Ltd, and BRAZOS MIDSTREAM.
   

Oil Pipeline Infrastructure Industry News:

• In October 2021, Sinopec announced the commissioning of Luyu oil pipeline in China. The pipeline operates between Shandong province and Henan Province and delivers over 10 mtpa of oil. The total length of the pipeline is 796 kms and allows a reliable supply of oil and oil products across the country.
   
• In 2020, Exxon Mobil announced the commissioning of Delaware Connector Pipeline, which is an oil pipeline operating across Texas, U.S. The pipeline runs for over 77 kms and has a capacity to deliver 480,000 barrels of oil per day. The pipeline is 30 inch in diameter and is anticipated to aid the firm to triple their output across Permian base by 2025.
   

Oil Pipeline Infrastructure market research report includes an in-depth coverage of the industry with estimates & forecast in terms of ‘000 KM and USD Billion from 2019 to 2032, for the following segments:

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By Application (‘000 Km and USD billion)

• Onshore
• Offshore

By Operation (‘000 Km and USD billion)

• Transmission
• Gathering

By Diameter (‘000 Km and USD billion)

• ≤8 Inch
• >8-24 Inch
• >24 Inch

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • Russia
  • France
  • Germany
• Asia Pacific
  • India
  • China
  • Australia
  • Indonesia
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • Iraq
  • Turkey
• Latin America
  • Brazil
  • Argentina