Oil Gas Electrification Market

Report ID: GMI5291
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Oil & Gas Electrification Market Size

The global oil & gas electrification market size in 2024 was valued at USD 1.9 billion and is estimated to grow at a CAGR of 9.1% from 2025 to 2034. Increasing focus on reducing environmental impact from conventional energy sources, coupled with the development of sustainable energy production technologies to meet power demands, is driving the industry growth. Additionally, increasing concerns about carbon emissions and supportive government policies promoting renewable energy adoption will further augment the business landscape.

Oil & Gas Electrification Market

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Favorable government policies focused on energy security and infrastructure modernization, requirements to upgrade and replace aging infrastructure and increased investments in infrastructure development to support extraction, processing, and distribution operations will shaping the industry dynamics. For instance, in September 2024, Turnwell Industries, has been formed through a partnership between SLB, ADNOC Drilling Company, and Patterson-UTI. This collaboration aims to enhance UAE's unconventional oil and gas development through advanced technologies and integrated services. The venture targets completion of 144 wells by 2025's end, with SLB providing comprehensive drilling and technical support.

Oil & Gas Electrification Market Trends

The market is anticipated to grow on account of increasing environmental concerns, technological progress, rising energy demand and geopolitical factors. Companies are investing in sustainable solutions, and renewable energy systems further complementing the industry landscape. Digital technologies and automation improve operational efficiency and safety standards coupled with shifting focus toward development of aging infrastructure in developed countries will shape the business dynamics. Geopolitical changes and supply chain challenges have increased focus on energy security and strategic reserves driven by infrastructure expansion in emerging markets continues to meet rising energy demand, further contribute to the industry growth.

Oil & Gas Electrification Market Analysis

Oil & Gas Electrification Market Size, By Technology,  2022 - 2034 (USD Billion)
Learn more about the key segments shaping this market

Offshore wind segment is anticipated to grow over USD 7 billion by 2034. Offshore wind industry is expanding due to increasing focus on achieving zero-emission targets alongside large-scale offshore infrastructure development. Government initiatives, including Feed-in Tariffs (FiT) and renewable energy programs, support market growth. The global shift toward renewable energy integration and carbon emission reduction targets further drives industry expansion.

Oil & Gas Electrification Market Size, By Technology,  2022 - 2034 (USD Billion)
Learn more about the key segments shaping this market

Oil & gas electrification market from offshore platform electrification segment is anticipated to witness a CAGR of over 9.5% by 2034. Environmental regulatory norms are changing rapidly, ongoing adopt clean energy sources is complementing the industry landscape. Companies are transitioning from fossil fuels to renewable energy sources, including solar, wind, and hydropower, to meet emission targets, contributing to the industry growth. Reducing reliance on conventional power sources by implementing natural gas and renewable energy solutions coupled with favorable government policies and tax incentive programs supporting renewable energy adoption will positively influence the business dynamics.

U.S. Oil & Gas Electrification Market Size, 2022 - 2034 (USD Million)
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The U.S. oil & gas electrification market is set to grow over USD 180 million by 2034. Favorable government policies and strategic initiatives aim to strengthen production capacity, leverage natural reserves, and enhance energy security, is driving the industry growth. Increasing domestic oil and gas demand necessitates robust infrastructure for efficient supply chain operations along with technological advancements and investments in sustainability projects, is complementing the industry landscape.

Infrastructure investments in pipelines, storage facilities, and export terminals further contribute to the industry growth. For instance, in December 2024, Energy Transfer LP has announced plans to build a new Hugh Brinson natural gas pipeline system to transport natural gas from the Permian Basin. With a capacity of 1.5 billion cubic feet per day, the pipeline will connect to Energy Transfer's current infrastructure near the Dallas/Fort Worth area. Moreover, introduction of stringent regulations and policies focused on zero-emission targets, along with new environmental schemes and projects, are driving the U.S. oil & gas electrification industry growth.

Oil & Gas Electrification Market Share

Oil & Gas Electrification Company Market Share Analysis, 2024

Companies in the oil and gas infrastructure market form strategic partnerships and pursue mergers to expand their presence. They invest in research and development to create new services and increase revenue. These companies strengthen their market position by optimizing distribution networks and expanding internationally through strategic alliances and acquisitions.

Oil & Gas Electrification Market Companies

Major players operating across the industry include:

  • ABB
  • ADNOC
  • Aker Solutions
  • BP
  • Cerulean Winds
  • Chevron
  • ConocoPhillips
  • Equinor
  • GE Vernova
  • Havfram
  • LS Cable
  • Marathon Oil
  • Nexans
  • Norddeutsche Seekabelwerke
  • Prysmian
  • Saudi Aramco
  • Shell
  • Siemens
  • SLB
  • Southwire
  • TotalEnergies
  • ZTT

Oil & Gas Electrification Industry News

  • In October 2024, Shell Pipeline Company has made a strategic decision to construct the Rome pipeline, a new offshore infrastructure project. The pipeline will span 100 miles from the company’s Green Canyon block 19 hub platform to its Fourchon Junction facility in Louisiana. Through an agreement with BP America Production Company, the pipeline will exclusively transport crude oil from BP's Kaskida field. The project connects with Enbridge's Canyon oil pipeline, a 140-mile system with 24 and 26-inch sections, linking the Kaskida Floating Production Unit to the Green Canyon hub platform.
  • In July 2024, ONEOK, Inc. plans to strengthen fuel supply to Denver through a new pipeline project. The USD 480 million infrastructure expansion includes a 230-mile pipeline from Kansas to Denver International Airport. The system will transport an additional 35,000 barrels of refined products daily, with operations beginning in mid-2026. The company secured long-term contracts for the expanded capacity, which will support aviation fuel delivery to DIA.

The oil & gas electrification market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

Market, By Technology

  • Offshore Wind
  • Underground Cables
  • Solar
  • Other

Market, By Application

  • LNG/FLNG
  • Offshore Platform Electrification
  • Refinery
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S
    • Canada
  • Europe
    • Norway
    • UK
    • Netherlands
    • Denmark
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Vietnam
  • Middle East & Africa
    • Saudi Arabia
    • Qatar
    • UAE
    • Oman
  • Latin America
    • Brazil
    • Mexico

 

Author: Ankit Gupta, Divyendu Sharma
Frequently Asked Question(FAQ) :

Key players in the market include ABB, ADNOC, Aker Solutions, BP, Cerulean Winds, Chevron, ConocoPhillips, Equinor, GE Vernova, Havfram, LS Cable, Marathon Oil, and Nexans.

The U.S. oil & gas electrification market is projected to exceed USD 180 million by 2034, driven by favorable government policies and initiatives to enhance energy security and production capacity.

The offshore wind segment is expected to surpass USD 7 billion by 2034, supported by zero-emission targets and large-scale offshore infrastructure development.

The global oil & gas electrification industry was valued at USD 1.9 billion in 2024 and is projected to grow at a 9.1% CAGR from 2025 to 2034, driven by the adoption of sustainable energy technologies to reduce environmental impact.

Oil & Gas Electrification Market Scope

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