Oil Pipeline Infrastructure Market Size By Product (Crude Oil, Petroleum Product), By Application (Onshore, Offshore), By Operation (Transmission, Gathering), By Diameter {≤ 8 Inch, >8-24 Inch, > 24 Inch}) Industry Analysis Report, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2019 – 2025

Industry Trends

Oil Pipeline Infrastructure Market size was valued at over USD 110 billion in 2018 and the cumulative installation is set to exceed 1 million km by 2025.
 

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Flourishing demand for energy on ground of rapidly growing economies are driving the global market size. Globalization have accelerated the international trade resulting in increasing demand for reliable infrastructure. Major oil rich economies including Saudi Arabia, Iran, Iraq are investing heavily toward infrastructural expansion to facilitate export and provide reliable flow of resources to demand centers. Need to facilitate transportation of crude oil and refined product bound in long term supply contract will further stimulate the development of dedicated pipeline network.

Ongoing replacement of ageing oil & gas infrastructure in order to facilitate streamlined and economical transportation will drive the global market. However, stringent regulatory policies along with rising concerns toward assuring environment safety will affect the industry growth. As per the Greenpeace report, the Energy Transfer partner’s pipelines caused crude oil spills of over 3.6 million gallons between year 2002 to 2017.
 

Oil Pipeline Infrastructure Market, By Product

The crude oil pipeline infrastructure market is set to grow on account of growing requirement for dedicated network to provide point of contact and accessibility to the resources. Growing investment toward E&P activities coupled with booming production from shale plays will initiate the development of new pipeline projects. Key advantages including low operational cost, safe and efficient transportation will encourage the usage of pipelines over other means of transportation.
 

Upcoming refineries across Asia along with modernization of existing units across Europe and North America will foster the petroleum product pipeline infrastructure market. The refined product pipelines distribute the crude oil condensates from refineries to various companies and consumers relying on feedstock to run their operations. Growing demand from industries and various commercial facilities will enhance the industry outlook. Majority of the airports across the North America are dependent on the supply from pipelines with dedicated network for transportation of jet fuel directly to the airports.
 

Oil Pipeline Infrastructure Market, By Application

Increasing discoveries of subsea hydrocarbon reserves coupled with recovering oil prices will fuel the offshore oil pipeline infrastructure market growth. In April 2019, Exxon Mobil and Repsol entered into a joint venture to pursue exploration and production in subsea fields across the Caribbean Sea.
 

The onshore oil pipeline infrastructure was valued over USD 75 billion in 2018. Rapidly expanding commercial sector along with increasing demand across industries will boost the product demand. Improving trade relationships along with rapid globalization will induce the infrastructural development.
 

Oil Pipeline Infrastructure Market, By Operation

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Need to boost the interstate and intrastate trade will drive the oil transmission infrastructure market. Strict industry standards and codes pertaining the product quality and raw material will impact the industry growth. The trunk lines facilitate the long-distance transportation of crude between the domestic and international boundaries.
 

The oil pipeline infrastructure market by gathering lines will grow over 3% by 2025. The network transports the oil from well heads to a central collection for temporary storage or treatment. Increasing infrastructural investment with significant government backed funds will accelerate the development and expansion of the network along with other pipeline assets.
 

Oil Pipeline Infrastructure Market, By Diameter

Rapid advancement in the E&P technology along with integration of digital software and equipment have fueled the demand across >8-24-inch oil pipeline infrastructure market. Respective governments have allocated funds for upgradation and expansion of existing network. The range of pipelines are widely used as trunk lines for facilitating long distance transmission.
 

>24-inch pipelines are expected to gain momentum on account of rising installation of green field transmission pipelines. Ongoing discoveries along with increasing production from existing oil fields will augment the industry landscape. In addition, large diameter pipes are further being installed across offshore facilities and large pipeline projects.
 

Oil Pipeline Infrastructure Market, By Region

Rapid discoveries of new oil producing fields along with technological advancements will drive the North America market growth. New fields across the Texas and North East U.S. are expected to come into operation by 2019 that will boost the oil & gas production. The government is providing substantial investments for the upgradation and addition of green field infrastructure to bring the resources to the market.
 

Increasing energy demand primarily across India and China will foster the Asia Pacific oil pipeline infrastructure market. The region is anticipated to contribute to maximum number of new pipeline additions by 2022. Increasing investments from foreign players post NELP regime will positively enhance the industry outlook. Growing reliance on imports along with need to diversify from single supplier will create the requirement of building additional infrastructure.
 

Competitive Market Share

Eminent players operating across the market include Enbridge, TransCanada, Kinder Morgan, Pembina, CNPC, Petrobras, PetroChina, Bechtel, Jindal Group, National Oil Varco, Welspun Corporation, Chelpipe, CRC Evans and Europipe.
 

Low cost manufacturing and investment in R&D are the key strategic initiatives opted by the industry manufacturers to capture a larger market share. Furthermore, mergers & acquisitions coupled with collaboration with leading technological partners will further support in business expansion.
 

Oil Pipeline Infrastructure Market Industry Background

The oil pipeline infrastructure facilitates the transportation of crude and refined products safely to the demand centers while maintaining the standard pressure and flow conditions. The transmission infrastructure includes a vast network of pipelines of varying sizes and functions including large diameter transmission or trunk lines and smaller gathering lines. The long-distance transportation is facilitated by the interstate or intrastate pipeline mains while the gathering lines facilitates transportation from well head to central collection point for processing and storage.