US Downstream Oil and Gas Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 0.92 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Downstream Oil and Gas Market Analysis
The United States oil and gas downstream market is expected to register a CAGR of 0.92% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. However, it has now reached pre-pandemic levels.
- Over the medium term, factors such as abundant feedstock availability from the shale gas deposits, robust pipeline, storage facilities, extensive rail infrastructure, and oil companies moving ahead with billions of dollars in investments to upgrade the existing refining capacity are likely to drive the US oil and gas downstream market during the forecast period.
- On the other hand, the sanctions on Venezuela are expected to decrease the availability of cheap crude and, thereby, decrease the interest of the operators of complex refineries in the country for further investment. This is expected to restrain the market during the forecast period.
- Nevertheless, according to the International Energy Agency, in Clean Technology Scenario, petrochemicals are expected to become the only growing segment of global oil demand by 2050. Moreover, several petrochemical projects are expected to come online in the United States during the forecast period. Hence, the petrochemical sector is expected to present a huge growth opportunity for the downstream players in the country.
US Downstream Oil and Gas Market Trends
Refining Sector to Register a Modest Growth
- The United States has been witnessing growing energy demand in recent days. This growth in demand can be attributed to the growing population and an improvement in living standards in the developed states. Even though new and renewable energy sources are gaining popularity around the country, petroleum fuel remains a major energy source globally. This trend is expected to continue for the next few decades and benefit all sectors of the petroleum industry.
- Increasing industrial activity and economic growth are likely to support the refining industry. In developed states such as Massachusetts, Connecticut, and Minnesota, the demand for diesel and other distillates is expected to be robust in the coming years. This demand growth can be attributed to the strong refinery industry in these countries.
- The United States Gulf Coast region is expected to witness a fresh wave of investment in the downstream business during the forecast period. In addition, the United States' shale production has almost doubled since the shale revolution started and is expected to increase further.
- As of 2021, the refining capacity of the United States stood at 17 million barrels per day. With continuous investments and high competition, the refining throughput of the United States decreased at a rate of 1.1% in 2021.
- As of January 1, 2022, there were 130 operable petroleum refineries in the United States. The newest refinery in the United States is the Texas International Terminals 45,000 b/cd refinery in Channelview, Texas, which was operable on January 1, 2022, but actually started operating in February 2022.
- However, the newest refinery with significant downstream unit capacity is Marathon's facility in Garyville, Louisiana. This facility came online in 1977 with an initial atmospheric distillation unit capacity of 200,000 b/cd, and as of January 1, 2022, it had a capacity of 585,000 b/cd.
- Hence, increased production is expected to proliferate the growth of the US oil and gas refining market during the forecast period.
Increasing Demand for Petroleum Products
- Petroleum includes refined petroleum products, such as gasoline, diesel fuel, jet fuel, unfinished oils, and other liquids, such as fuel ethanol, blending components for gasoline, and other refinery inputs.
- The United States produces a large share of the petroleum it consumes, but the country still relies on imports to meet the increasing demand. Imports from other countries help to meet the domestic demand for petroleum. Moreover, natural gas production in the United States rose by 2.3% last year. Natural gas production was 934.2 billion cubic meters last year compared to the previous, which was 915.9 billion cubic meters.
- The US exported an average of roughly 6 million b/d of petroleum products in the first half of 2022 (January to June). US petroleum product exports increased by 11% (596,000 b/d) in the first half of 2022 as compared to the first half of 2021, marking the most remarkable growth rate since 2017. Most petroleum products, including distillate fuel oils and hydrocarbon gas liquids (HGLs) like propane, contributed to the development of exports.
- The aviation industry has become more efficient in recent decades, with the US airlines improving their fuel efficiency (on a revenue ton mile basis) by more than 135% between 1978 and 2021. Also, the vast majority of airline fuel used by US airlines is jet fuel, which is a kerosene-based fuel derived from petroleum. The price of jet fuel is greatly affected by the global price of crude oil. As of 2021, the cost of airline fuel reached USD 1.98 per gallon.
- Moreover, in May 2022, the Department of Transportation's Bureau of Transportation Statistics (BTS) released the March Fuel Cost and Consumption numbers of the US airlines, indicating that the US scheduled service airlines used 1.38 billion gallons of fuel, 20.3% more fuel than in February 2022 (1.14B gallons) and 9.8% less than in pre-pandemic days.
- Therefore, factors such as increasing demand for petroleum products and the improvement in downstream infrastructure are expected to drive the downstream market in the United States.
US Downstream Oil and Gas Industry Overview
The market for United States oil and gas downstream remains fragmented, with a number of key players, including (in no particular order) Marathon Petroleum Corp., Chevron Corporation, Valero Energy Corporation, Exxon Mobil Corporation, Phillips 66, and Royal Dutch Shell PLC.
US Downstream Oil and Gas Market Leaders
Marathon Petroleum Corp.
Chevron Corporation
Valero Energy Corporation
Exxon Mobil Corporation
Phillips 66
*Disclaimer: Major Players sorted in no particular order
US Downstream Oil and Gas Market News
- Nov 2022: Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, announced it had signed an agreement to acquire full ownership of Beyond6 LLC (B6) and its network of 55 compressed natural gas (CNG) stations across the United States from Chevron's current B6 co-owners, a subsidiary of Mercuria Energy Trading and B6 CEO Andrew West.
- Jan 2022: Airbus SE announced that it had commenced manufacturing aircraft from its US-based facility. All the aircraft manufactured at the location are expected to operate on a blend of renewable aviation fuel and conventional jet fuel. Airbus SE has taken this initiative in line with its goal of manufacturing zero-carbon-emitting aircraft by 2035.
US Downstream Oil and Gas Market Report - Table of Contents
1. INTRODUCTION
1.1 Market Definition
1.2 Study Assumptions
1.3 Study Deliverables
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Refining Capacity and Forecast in million barrels per day, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 PESTLE Analysis
5. MARKET SEGMENTATION BY SECTOR
5.1 Refining
5.2 Petrochemical
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Marathon Petroleum Corp.
6.3.2 Phillips 66
6.3.3 Valero Energy Corporation
6.3.4 Exxon Mobil Corporation
6.3.5 Royal Dutch Shell PLC
6.3.6 Hunt Refining Company
6.3.7 U.S. Oil & Refining Co.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Downstream Oil and Gas Industry Segmentation
The downstream sector includes processing, moving, and selling refined goods made from crude oil. Industry segments downstream include product marketing, supply and trading, and oil refining.
The US oil and gas downstream market is segmented by sector into refining and petrochemical. The report also covers the market size and forecasts for the US oil and gas downstream market. For each segment, the market sizing and forecasts have been done based on refining capacity (in a million barrels per day).
US Downstream Oil and Gas Market Research FAQs
What is the current United States Oil And Gas Downstream Market size?
The United States Oil And Gas Downstream Market is projected to register a CAGR of greater than 0.92% during the forecast period (2024-2029)
Who are the key players in United States Oil And Gas Downstream Market?
Marathon Petroleum Corp., Chevron Corporation, Valero Energy Corporation, Exxon Mobil Corporation and Phillips 66 are the major companies operating in the United States Oil And Gas Downstream Market.
What years does this United States Oil And Gas Downstream Market cover?
The report covers the United States Oil And Gas Downstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Oil And Gas Downstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Downstream Oil and Gas Industry Report
Statistics for the 2024 US Downstream Oil and Gas market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Downstream Oil and Gas analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
