Report: Rising Demand for Energy to Boost the Onshore Oil and Gas Pipeline Market Through 2021
According to a new report from Technavio, the global onshore oil and gas pipeline market is expected to grow at a CAGR of close to 7% between 2017 and 2021,
“Transporting oil through rail, road, or ships is expensive and requires frequent trips,” said Thanikachalam Chandrasekaran, an oil and gas research expert with Technavio. “However, with pipelines, the transportation of oil and gas can run continuously and can be ramped up or shut down at any time. Pipelines are the most preferred mode of transporting oil and gas. Increasing global consumption of oil and gas is expected to drive the global onshore oil and gas pipeline market during the forecast period.”
The report breaks the global onshore oil and gas pipeline market into the following regions:
- The Americas
- Asia Pacific
- Europe, Middle East and Africa
The Americas
The Americas holds the largest share of the global existing oil and gas pipeline length. The U.S. possesses 89.37% of all the existing oil and gas pipeline infrastructure in the Americas, as of 2016. The country has a vast history of oil and gas exploration and refining, dating back to more than a century. Fueled by the shale gas and shale oil boom, it possesses approximately two-thirds of the pipeline infrastructure in the world.
Many new pipelines are coming up in the Americas during the forecast period. These include TransCanada’s Keystone XL pipeline, the Atlantic Coast Pipeline, and the automation of the Los Ramones pipeline in Mexico. Moreover, new oil and gas field discoveries in the Latin American countries of Argentina and Brazil will attract heavy investments.
Asia Pacific
Asia Pacific is experiencing high demand for oil due to rising consumption in countries such as China, India, Japan, South Korea, and Indonesia. The growing demand has led to increased exploration activities in the region, which is expected to drive the onshore oil and gas pipeline market during the forecast period.
“Rising oil and gas consumption in the region will result in increased upstream activities in countries such as India, China, Indonesia,” said Thanikachalam. “New explorations will require laying of the crude oil and natural gas pipeline network for easy transportation of the produced material, which will provide a major boost to the onshore oil and gas pipeline market during the forecast period,”
Europe, Middle East and Africa
The onshore oil and gas pipeline market in Europe, the Middle East and Africa is expected to witness moderate growth during the forecast period. As of 2016, once completed, oil and gas pipelines under construction will increase the existing length of the region’s oil and gas pipelines by around 40%. These include cross-border pipelines to supply natural gas from Russia to locations in Europe.
Europe, the Middle East and Africa is marked with major crude oil and natural gas exporters. The rising oil and gas demand in the Asia-Pacific countries of China and India will drive the crude oil exporters to further explore their oil and gas reserves. This will result in increased construction of onshore oil and gas pipelines to transfer oil and gas to refineries.
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