Global Crude Oil Market Report and Forecast 2024-2032

Global Crude Oil Market Outlook

The global crude oil market size reached approximately 100.50 MB/d in 2023. The market is projected to grow at a CAGR of 0.9% between 2024 and 2032, reaching around 108.69 MB/d by 2032.

Key Takeaways

• US oil output reached an unprecedented peak of 13.3 million barrels per day in December 2023.

• As one of the leading oil-producing countries globally, Saudi Arabia’s production is around 9 million bpd.

• In 2022, Canada's oil production reached a total of approximately 4 to 5 million bpd.

Crude oil refers to a mixture of hydrocarbon and organic materials that is formed from the remains of plants and animals. It is a non-renewable resource that is refined into products such as gasoline, petrochemicals, and jet fuels, among others. It plays an integral role in energy production, and its derivatives are extensively used in products that form the building blocks of modern society.

One of the major factors driving the crude oil market growth is the global economic expansion, which demands increased energy and power, impacting global oil demands.

The transportation sector, which encompasses air travel, shipping, and road transport, is the largest consumer of oil/ petroleum. The Organisation of the Petroleum Exporting Countries (OPEC) plays a significant role in establishing petroleum policies among Member Countries, securing stable prices for petroleum producers. Decisions made by OPEC regarding oil production levels can significantly impact oil prices. Reductions in production quotas are usually aimed at boosting prices, while increases are typically intended to lower prices or meet higher demands.

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Key Trends and Developments

Increasing popularity of air travel; usage of hydrocarbons in everyday products; advancements in extraction technologies; and deployment of technologies like AR, AI, and 3D; are the key trends driving crude oil demand

Crude Oil Market Trends

The deployment of advanced technologies such as augmented reality (AR), artificial intelligence (AI), and 3D modelling in the oil and gas sector has significantly enhanced the exploration, extraction, and management processes. AR can assist engineers and technicians in visualising subsurface geological formations in real-time, overlaying data such as drilling plans or seismic data onto the physical landscape. AI can predict the likelihood of finding oil in new locations by analysing geological data, historical exploration data, and other relevant factors. Meanwhile, 3D models help in the accurate characterisation of reservoirs, allowing engineers to understand the distribution of oil, gas, and water within the rock formations.

Chevron publicly declared its plans to acquire Hess Corporation in October 2023 in a monumental deal valued at USD 53 billion. This strategic move positions Chevron as the second major American energy corporation to undertake a significant investment in the fossil fuel sector and make it a vital player in the crude oil market. The acquisition underscores Chevron's commitment to bolstering its portfolio in oil and gas production, reflecting a strong belief in the long-term value of fossil fuels as an essential component of the global energy mix. By integrating Hess Corporation into its operations, Chevron aims to enhance its production capabilities, expand its reserves, and solidify its standing in the competitive energy market.

Market Segmentation

“Crude Oil Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Crucial stages involved in the upstream process

The upstream sector, also known as the exploration and production (E&P) sector, encompasses all activities related to searching for, recovering, and producing crude oil and natural gas from underground or underwater fields. This sector involves the initial steps of identifying potential hydrocarbon deposits through geological and geophysical surveys, followed by drilling exploratory wells to confirm their presence.

Once a viable reservoir is located, the sector moves into the development phase, establishing the necessary infrastructure to extract, process, and temporarily store these resources before they are handed off to the midstream sector for transportation. Critical for meeting the global energy demand, the upstream sector combines advanced technology, significant investment, and specialised expertise to navigate its complex, high-risk environment efficiently.

Rising demand for petrochemicals supports the crude oil market

The demand for petrochemicals is experiencing a significant surge owing to its extensive usage as a raw material or an intermediate in diverse industries, including chemicals and energy and utility. Crude oil serves as a starting material in the production of petrochemicals, hence the rising demand for petrochemicals for various applications, including to power modern energy systems, favours the crude oil market.

The key market players are also capitalising on this trend by designing innovative processes, utilising advanced equipment, and initiating research and development activities to integrate petrochemical complexes with refineries. The development of technologies such as crude oil-to-chemicals (COTC) that can directly convert crude oil into chemicals is anticipated to further bolster the crude oil market growth in the coming years.

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Competitive Landscape

The market players are increasing acquisition and exploration activities to gain a competitive edge in the crude oil market

Other players in the crude oil market include China Petrochemical Corporation, ConocoPhillips Company., Devon Energy Corporation, Marathon Oil Corporation, PJSC NK Rosneft, Saudi Arabian Oil Company (Saudi Aramco), Kuwait Petroleum Corporation, China National Petroleum Corporation, China National Offshore Oil Corporation, Reliance Industries Limited, Petróleo Brasileiro S.A., and Equinor ASA.

Crude Oil Market Analysis by Region

The Middle East is one of the largest producers of crude oil. Due to its proximity to Europe and the Asia Pacific, the import of crude oils from the region is significantly increasing. Players in countries such as Saudi Arabia, Iraq, and the United Arab Emirates are also expanding their production facilities to meet the growing demand for crude oil globally. The geological characteristics of the Middle East's oil fields allow for relatively easy and inexpensive extraction compared to other parts of the world. The oil in this region is often found in large, conventional fields that are accessible at lower depths, reducing the complexity and cost of extraction.

Meanwhile, North America is also expected to occupy a significant crude oil market share due to advancements in extraction technologies and increasing exploration of shale oil reserves and deposits. The region has also made strategic investments in developing the necessary infrastructure for oil production, transportation, and exportation which includes pipelines, rail networks, and port facilities capable of handling crude oil exports. The North American crude oil market has demonstrated resilience and adaptability in the face of market fluctuations and geopolitical challenges. Producers have continuously worked to lower production costs and improve efficiency, making North American oil more competitive on the global stage.

Key Highlights of the Report