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South America Oil and Gas Downstream Market Size (2024 - 2029)

The South American oil and gas downstream market is projected to experience growth over the forecast period, driven by increasing demand for natural gas and refined petroleum products. Despite the challenges posed by the rising use of biofuels, the market has rebounded to pre-pandemic levels. The ongoing digitalization and modernization efforts in the refining and petrochemical sectors are anticipated to lower costs and process losses, presenting further opportunities for market expansion. Brazil is expected to lead the region in terms of market size.

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Market Size of South America Oil and Gas Downstream Industry

South America Oil and Gas Downstream Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 3.90 %
Market Concentration Medium

Major Players

South America Oil and Gas Downstream Market Major Players

*Disclaimer: Major Players sorted in no particular order

South America Oil & Gas Downstream Market Analysis

The South American oil and gas downstream market is expected to register a CAGR of more than 3.9% during the forecast period.

The market was negatively impacted by the COVID-19 pandemic in 2020. Presently, the market has reached pre-pandemic levels.

  • Over the medium term, factors such as the increasing demand for natural gas and refined petroleum products are expected to boost the demand for the oil and gas downstream market in South America during the forecast period.
  • On the flip side, increased use of biofuels such as bioethanol and biodiesel is expected to negatively impact growth in the downstream oil and gas sector.
  • Nevertheless, the digitalization and modernization of the refining and petrochemical sector are expected to reduce refining costs and process losses. This, in turn, is expected to create an opportunity for the market during the forecast period.
  • During the forecast period, Brazil is expected to dominate South America's oil and gas downstream market.

South America Oil & Gas Downstream Industry Segmentation

Downstream operations are oil and gas processes that occur after the production phase up to the point of sale. This sector of the oil and gas industry is the final step in the production process and is represented by refiners of petroleum crude oil and natural gas processors who bring usable products to end users and consumers. The South American oil and gas downstream market is segmented by type and geography. By type, the market is segmented into refineries and petrochemical plants. By geography, the market is segmented into Brazil, Argentina, Colombia, and the Rest of South America. For each segment, the refining capacity and forecasts have been done based on units (million barrels per day).

By Sector
Refineries
Market Overview
Key Project Information
Petrochemical Plants
Market Overview
Key Project Information
By Geography
Brazil
Argentina
Colombia
Rest of South America
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South America Oil and Gas Downstream Market Size Summary

The South American oil and gas downstream market is poised for growth, driven by increasing demand for natural gas and refined petroleum products. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19. However, the rise in biofuels usage, such as bioethanol and biodiesel, poses a challenge to the sector's expansion. Despite this, advancements in digitalization and modernization within the refining and petrochemical industries are expected to lower costs and minimize process losses, presenting new opportunities. Brazil is anticipated to lead the market, supported by significant investments and projects aimed at enhancing refinery capacity and efficiency.

The refining sector in South America is set to experience substantial growth, with countries like Brazil, Argentina, and Colombia undertaking various expansion projects. Brazil's Petrobras is divesting its refineries to foster a competitive market, allowing private firms to enter and invest in the sector. This shift is expected to enhance Brazil's downstream capabilities significantly. In Argentina, YPF is optimizing its refinery operations, while Colombia's Ecopetrol is expanding its Reficar refinery to meet domestic fuel demands. These developments underscore the region's commitment to strengthening its oil and gas downstream market, with Brazil expected to maintain a dominant position throughout the forecast period.

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South America Oil and Gas Downstream Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Refining Capacity and Forecast in million barrels per day, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Refineries

        1. 2.1.1.1 Market Overview

        2. 2.1.1.2 Key Project Information

      2. 2.1.2 Petrochemical Plants

        1. 2.1.2.1 Market Overview

        2. 2.1.2.2 Key Project Information

    2. 2.2 By Geography

      1. 2.2.1 Brazil

      2. 2.2.2 Argentina

      3. 2.2.3 Colombia

      4. 2.2.4 Rest of South America

South America Oil and Gas Downstream Market Size FAQs

The South America Oil and Gas Downstream Market is projected to register a CAGR of greater than 3.9% during the forecast period (2024-2029)

Petrobras, YPF S.A., Ecopetrol SA, Shell PLC and BP PLC are the major companies operating in the South America Oil and Gas Downstream Market.

South America Oil and Gas Downstream Report Snapshots

South America Oil and Gas Downstream Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)