OIL & GAS EPC MARKET TO REACH A VALUATION OF ~US$ 64.7 BN BY 2027

Posted by mandar on April 7th, 2021

Oil & Gas EPC Market: Introduction

The global oil & gas EPC market was valued at US$ 40.8 Bn in 2018 and is expected to expand at a CAGR of ~5% during the forecast period. Based on sector, the upstream segment held dominant share of the global oil & gas EPC market in 2018. Increase in investments in development of subsea projects is anticipated to boost the segment during the forecast period.  In terms of service, the construction segment accounted for major share of the global oil & gas EPC market in 2018. Rise in trend toward development of more complex fields is anticipated to augment the segment in the near future. Construction engineers assist E&P companies to evaluate the structural, electrical, and mechanical condition of a project. The oil & gas EPC market in Asia Pacific is likely to expand at a significant pace during the forecast period, owing to the growth in investments in the construction of pipeline infrastructure in the region.

Key Drivers of Oil & Gas EPC Market

Of late, the oil & gas EPC market has been expanding due to the increase in efforts in exploration of new oil and gas discoveries . Several countries across the globe are making investments to explore new oilfield reserves, particularly in the Persian Gulf, Gulf of Mexico, North Sea and , South China Sea,  in order to cater to the rising demand for oil and gas. About 140 discoveries of new oilfield reserves were made across the globe in 2018. The total discovered resources stood at around 9 giga barrels of oil equivalent in 2018. Offshore discoveries held 60% share, while gas resources accounted for about 40% share. These discoveries are expected to boost the development of wells and oil & gas production in the near future. Thus, increase in discovery of oil & gas reserves is estimated to drive the oil & gas EPC market during the forecast period.

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North America Dominates Oil & Gas EPC Market

North America dominated the global oil & gas EPC market in 2018, due to the increase in number of oil & gas projects in Canada and the U.S. The U.S. held major share of oil & gas EPC market in North America in 2018. Abundant availability of oil and gas reserves in the U.S. and Canada has encouraged E&P companies to invest in North America. This has boosted the oil & gas EPC market in the region. For instance, Ohio’s shale energy sector attracted investment worth US$ 78 Bn between 2011 and Q2 of 2018. Technological innovation in hydraulic fracturing and low breakeven prices have also supported upstream oil and gas activities in onshore regions, resulting in high demand for oil & gas EPC activities.