Oil & Gas Downstream Market Size, Share, and Industry Analysis, By Sector (Refineries, Petrochemical Plants, and Retail Outlets), By Product (Light Products, Middle Products, and Heavy Products), and Regional Forecast, 2025-2032

Oil and gas downstream operations are the processes involved in converting oil and gas into the finished product, which includes refining crude oil into natural gas liquids, gasoline, diesel, and a variety of other energy sources. After the upstream process of crude oil extraction, it is shipped and transported, followed by oil refining, supply and trading, and product marketing and retail, which is considered a downstream process. Global crude oil refining is witnessing development due to increasing demand for petroleum products in various industries for infrastructure development and expanding transportation sector. Increasing demand for refined oil and gas products is leading to growing investments in new downstream oil and gas projects.

• According to the Environmental Impact Assessment (EIA)’s Short-Term Energy Outlook, domestic petroleum and other liquid fuels production will average 13.21 million b/d in 2024. Petroleum production in 2025 is expected to rise to 13.72 million b/d, representing a 70,000 b/d upward. Global output for 2025 will be up by 44,000 b/d to 104.61 million b/d, while the consumption forecast for 2025 will rise by 45,000 b/d to 104.26 million b/d.

• According to the International Energy Agency’s (IEA) June 2022 Oil Market report, global refining capacity expanded by 1.0 million barrels per day in 2022 and by an additional 1.6 million b/d in 2023. In Asia and the Middle East, over nine refinery projects began operations by the end of 2023 and added 2.9 million barrels per day of global refinery capacity once fully operational

The COVID-19 pandemic halted almost all industries with respect to production, supply chain, manufacturing, transportation, and others. The COVID-19 pandemic had a significant impact on oil and gas demand, production, and prices. Overall, the effect of the COVID-19 pandemic on the oil & gas downstream market was negative.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Oil & Gas Downstream Market


• Key Industry Trends


• Regulatory Landscape for the Oil & Gas Downstream Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY SECTOR

Based on sector, the market is segmented into refineries, petrochemical plants, and retail outlets.

The refineries segment holds a significant share of the market owing to the transportation sector being at the forefront of fuel consumption. Refineries focus on the production of fuels, such as LPG (liquefied petroleum gas), gasoline (petrol), kerosene and jet fuel, diesel, fuel oils, and coke.

Many oil companies from emerging and developed countries are expecting a huge demand for energy and refined petroleum products in their domestic markets. Moreover, key players are also focusing on developing world export businesses for their refineries, which will drive considerable expenditures in large and complex capital projects in the refining segment.

Petrochemical plants focus on creating intermediate products which are used to produce industrial and consumer products. Some of the significant petrochemical processes include steam cracking to produce ethylene (ethane), propylene (propene), and butadiene and aromatics plants producing benzene, xylene, toluene, and other aromatics. Demand for petrochemical products will continue to grow over the forecast period with the rising global wealth.

Retail outlets include the retail distribution of refined petroleum products to industries, government, and all public consumers. The flow of crude oil and petroleum products provides the highest value to the supplier, which sets the final prices at the pump and is highly competitive.

ANALYSIS BY PRODUCT

Based on product, the global market for oil & gas downstream is segmented into light products, middle products, and heavy products.

The light products segment holds a significant share of the global oil and gas downstream market. It involves liquid petroleum gas (LPG), gasoline (petrol), and naphtha, which are used as solvents or paint thinners in the industrial sector. Medium products, also called middle distillates, include kerosene, jet aircraft fuels, and diesel fuel. Heavy Products include Fuel oils, Lubricating oils, Paraffin wax, Asphalt and tar, and Petroleum coke. It is the fastest growing segment as they are primarily used in the production of polymers for synthetic fibers, plastics, and other petrochemical intermediates.

REGIONAL ANALYSIS

The oil & gas downstream market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is projected to be the fastest-growing region due to an increase in the number of new offshore projects and rising energy demand due to an increase in population and infrastructure development programs. North America is witnessing growth owing to increasing offshore drilling and exploration activities, as well as advanced technologies. Led by the U.S., non-OPEC+ production is forecast to rise by 1.6 mb/d in 2024 compared to 2.4 mb/d last year, when global oil output climbed by two mb/d to 102 mb/d.

The Middle East and Africa are projected to be lucrative regions for the growth of this market. It is a significant contributor to the size of the overall oil & gas market. In Latin America, investment has increased in the past decade. Demand for petroleum products will increase substantially as the economies in developing regions improve, and per capita energy consumption also increases. Substantial gains are expected to come from Guyana and Brazil over the forecast period.

KEY PLAYERS COVERED

The report includes profiles of key players, such as Reliance Industry Limited, BP PLC, Saudi Aramco, China National Petroleum Corporation, Chevron Corporation, Indian Oil Corporation Limited, Royal Dutch Shell Plc., ExxonMobile, Delek U.S. Holdings, Valero Energy Corporation, and Marathon Petroleum Corporation (MPC).

KEY INDUSTRY DEVELOPMENTS

• April 2023- The U.S. independent refiner Valero received crude from Venezuela to refine, thus adding to the list of U.S. refineries that are absorbing volumes from the South American crude oil supplier. It processed over 8,500 b/d of 10.3°API Venezuelan crude at Bill Greehey Refinery in Corpus Christi, Texas. Valero now joins the ranks of U.S. oil major Chevron and refiner Phillips 66, which received a combined 50,000 b/d.

• April 2023- Valero Energy Corp started the production on its new coker at the Port Arthur, Texas refinery, which has a capacity of 335,000 barrels/day (bpd).