US Oil & Gas Upstream Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 2.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Oil & Gas Upstream Market Analysis
The United States oil and gas upstream market is estimated to be at 12.4 million barrels per day by the end of this year. It is projected to reach 13.8 million barrels per day in the next five years, registering a CAGR of 2.3% during the forecast period.
- Over the medium term, increasing deep-water activities offshore will likely drive the US oil and gas upstream market in the forecast period. A huge amount of proven reserves in the Gulf of Mexico is attracting more investment in the deep water sector.
- On the other hand, volatility in oil prices and comparatively higher production costs for unconventional resources are expected to hinder the growth of the US oil and gas upstream market.
- Nevertheless, the increasing number of activities and oil production from the Permian Basin in the United States is likely to create lucrative opportunities for the United States oil and gas upstream market.
US Oil & Gas Upstream Market Trends
Onshore Segment to Dominate the Market
- In 2022, the United States produced an average of 11.9 million-barrel per day of crude oil increase from the past year. United States natural gas production in 2022 grew by 4% to 4.9 million cubic feet daily. Appalachia, Permian, and Haynesville in the United States accounted for 60% of the country's production in 2022.
- In May 2022, the Railroad Commission of Texas (RRC) permitted drilling 963 new wells compared to 631 in May 2021. The breakdown of well types for original drilling permits is 221 for oil, 76 for gas, 601 for oil or gas, 53 for injection, and 12 for other permits.
- In May 2023, INEOS Energy announced the completion of the acquisition of a significant tranche of oil and gas assets of Chesapeake in the Eagle Ford shale, south Texas, for USD 1.4 billion. The deal marks INEOS Energy's entry into the US onshore oil and gas market as an operator as it acquires 2,300 wells, producing a net of 36,000 BOED.
- Therefore, owing to the mentioned points, activities onshore will likely increase and positively impact the US oil and gas upstream market over the forecast period.
Increasing Deep Water Activities Expected to Drive the Market
- Deepwater activities in the Gulf of Mexico will likely drive the market during the forecast period. Many companies in 2014 decreased their investments in the offshore market. Still, offshore activities again gained pace due to the decrease in the cost of drilling rigs and less investment return period than onshore. Due to this, Deepwater is expected to see significant growth in the United States oil and gas upstream market during the forecast period.
- In September 2022, Transocean announced 2 new contracts for its ultra-deepwater drillship Deepwater Asgard in the United States Gulf of Mexico. These contracts will require about 14 months of work and USD 181 million. The first contract is worth USD 395,000 per day with Murphy Oil, and the second is USD 440,000 per day and up to USD 40,000 per day for additional services. It is expected to begin in the first half of 2023.
- In October 2022, ExxonMobil announced 2 discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore Guyana. It will add to the company's extensive portfolio of development opportunities. The company made more than 30 discoveries on the block since 2015.
- In December 2022, the United States rig count was around 779. Hence, the increasing deepwater activities are expected to drive the United States' oil and gas upstream market during the forecast period.
US Oil & Gas Upstream Industry Overview
The United States' oil and gas upstream market is moderately fragmented. Some key players in this market (not in particular order) include Exxon Mobil Corporation, BP Plc, Royal Dutch Shell Plc, Total SA, and Chevron Corporation.
US Oil & Gas Upstream Market Leaders
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Exxon Mobil Corporation
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B.P. plc
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Chevron Corporation
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Royal Dutch Shell Plc
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Total SA
*Disclaimer: Major Players sorted in no particular order
US Oil & Gas Upstream Market News
- January 2023: Transocean Ltd announced contract awards or extensions for five drilling rigs. Together the fixtures represent approximately USD 488 million of firm backlog. Deepwater Invictus, an ultra-deepwater drillship, awarded a new three-well contract with an expected 100-day duration in the U.S. Gulf of Mexico with an independent operator. The contract contributes an estimated USD 43 million in backlog and is expected to commence in direct continuation of the rig's current program.
- February 2023: Williams announced that it had executed agreements with Chevron USA Inc to support natural gas development in the prolific Haynesville Basin and the deepwater Gulf of Mexico. The company will provide natural gas collecting services to Chevron's 26,000-acre Haynesville. Additionally, Williams agreed to utilize existing infrastructure to serve increased production from the Blind Faith platform, located 160 miles southeast of New Orleans in the Gulf of Mexico.
US Oil & Gas Upstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 United States Crude Oil and Gas Production, Historic and Forecast, till 2028
4.2.1 Crude Oil Production Forecast, in Million Barrel per Day
4.2.2 Natural Gas Production Forecast, in Billion Cubic Feet
4.3 Active Rig Count, By Location of Deployment, till 2022
4.4 Active Rig Count, By Major States, till 2022
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.1.1 Reduction in the Cost of the Drilling Rigs
4.7.1.2 Increasing Discovery of New Oil and Gas Fields Along with Rising Investment in the Sector
4.7.2 Restraints
4.7.2.1 Volatility in Oil Prices Along with Comparitively Higher Production Costs
4.8 Key Upstream Projects
4.9 Supply Chain Analysis
4.10 PESTLE Analysis
5. MARKET SEGEMENTATION
5.1 Location of Deployment
5.1.1 Onshore
5.1.2 Offshore
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Key Companies Profile
6.3.1 Exxon Mobil Corporation
6.3.2 BP plc
6.3.3 Royal Dutch Shell Plc
6.3.4 Total SA
6.3.5 ConocoPhillips
6.3.6 EOG Resources Inc.
6.3.7 Occidental Petroleum Corporation
6.3.8 Chevron Corporation
6.3.9 Pioneer Natural Resources
7. MARKET OPPORTUNITIES and FUTURE TRENDS
7.1 Increasing Number of Activities and Oil Production from the Permian Basin in the United States
US Oil & Gas Upstream Industry Segmentation
The oil and gas industry explains the stages of operations that entail exploration and production upstream. The oil and gas industry's exploration and early production stages are the main focus of upstream businesses.
The United States oil and gas market is segmented by location. By location, the market is segmented into onshore and offshore. Each segment's market sizing and forecasts are based on crude oil production (million barrels per day).
US Oil & Gas Upstream Market Research FAQs
What is the current United States Oil and Gas Upstream Market size?
The United States Oil and Gas Upstream Market is projected to register a CAGR of 2.30% during the forecast period (2024-2029)
Who are the key players in United States Oil and Gas Upstream Market?
Exxon Mobil Corporation , B.P. plc , Chevron Corporation, Royal Dutch Shell Plc and Total SA are the major companies operating in the United States Oil and Gas Upstream Market.
What years does this United States Oil and Gas Upstream Market cover?
The report covers the United States Oil and Gas Upstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Oil and Gas Upstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Oil & Gas Upstream Industry Report
Statistics for the 2024 US Oil & Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Oil & Gas Upstream analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
US Oil & Gas Upstream Market Report Snapshots
