/ Energy / Global Oil & Gas Market Shrinks by 13.6% in 2016 as Low Crude Oil Prices Push Down Revenues, says MarketLine

Global Oil & Gas Market Shrinks by 13.6% in 2016 as Low Crude Oil Prices Push Down Revenues, says MarketLine

Parul Dubey on October 27, 2017 - in Energy, Oil & Gas

MarketLine’s latest market report: ‘Global Oil & Gas’ reveals a declining market trend in 2016 as the price of crude oil pushed down profits of the major players.

Overall the global oil & gas market saw its value fall from $1,395.7 billion in 2015 to $1,205.6 billion in 2016.

Commenting on the value decline in the oil & gas market, MarketLine analyst Mohammad Hamza Iqbal said, “There is a clear correlation between the decline in the price of crude oil and the decline in the value of the oil & gas market generally, especially taking into consideration the fact that volume consumption levels globally actually increased rather than decreased in 2016. Whilst demand for oil and gas remains strong, low crude oil prices have hit profitability.’’

The company’s latest forecasts predict a market value of $1,624.7 billion over the period 2016 – 2021, a healthy Compound Annual Growth Rate (CAGR) of 6.1%. Volume growth during the same period is forecast at 1.6% reaching a total consumption of 52,619.8 million barrels of oil equivalent (BOE).

Growth is however expected to fall behind the total market in Europe with an expected CAGR of 3.4% to 2021. This is largely due to European market maturity, coupled with low population growth and a shift towards renewable energy. As a result only marginal growth in European volume consumption can be expected.

The company’s report also highlights that the US oil & gas market is the largest domestic oil & gas market in the world, with a total value of $286 billion in 2016.

This means that the US market alone accounts for almost 24% of the global oil & gas market. The second and third largest national oil & gas markets are China and Russia respectively. Chinese market value stood at $161.9 billion and Russia’s $63.5 billion in 2016. The crude oil segment was the largest in 2016, accounting for 96.4% followed by natural gas at 3.6%.

Information from MarketLine’s latest market report: Global Oil & Gas’

ENDS

For more information

Press Enquiries:
To contact our analyst or for further information please contact the MarketLine Press Office:
+44 (0) 207 832 4399 or email [email protected]

For further information on MarketLine Advantage please visit http://marketline.com/overview/advantage/

For updates, connect with us on Twitter or visit http://marketline.com/.

Editor’s notes

  • Quotes provided by Mohammad Hamza Iqbal, analyst at MarketLine.
  • Information based on MarketLine’s case study: ‘Global Oil & Gas’
  • The cast study covers the market size (value and volume 2012-16, and forecast to 2021). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market.

All information correct at time of publication and prepared under MarketLine’s established methodology.

About MarketLine

Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business information today. Advantage, our interactive subscribers-only platform, provides anytime access to a unique and exclusive access to a mix of company, industry, country, city and financial data for every major industry and marketplace in the world.

MarketLine content is produced by an internal team of analysts, drawing on primary and secondary research and prepared under an established methodology that has been tried and tested over 10 years. With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine to deliver quality data in an instant.

MarketLine is a trading name of GlobalData plc.

Comments are disabled