U.S. Oil & Gas Infrastructure Market - By Category (Surface and Lease Equipment, Gathering & Processing, Oil, Gas & NGL Pipelines, Oil & Gas Storage, Refining & Oil Products Transport, Export Terminals) & Forecast, 2024 – 2032

U.S. Oil & Gas Infrastructure Market Size

U.S. Oil & Gas Infrastructure Market was valued at USD 73.8 million in 2023 and is anticipated to grow at a CAGR of 6.5% from 2024 to 2032. There has been a significant growth in shale oil and gas production, which provided a favorable business scenario across the U.S.
 

Shale plays including the Permian Basin in Texas and the Bakken Formation in North Dakota have experienced considerable expansion increasing the requirement for construction of pipelines, storage facilities, and processing plants to support extraction and transportation. The country has an extensive network of oil and gas pipelines, and there has been a continued focus on expanding and upgrading this infrastructure. New pipeline projects have been undertaken to connect production areas to refining centers, export terminals, and domestic markets. Moreover, in some cases, older pipelines have been replaced or retrofitted to enhance safety, capacity, and efficiency, which is set to further encourage the U.S. oil & gas infrastructure market growth.
 

Oil and gas infrastructure refers to the physical assets and facilities required for the exploration, production, refining, storage, transportation, and distribution of oil and natural gas. The export of liquefied natural gas (LNG) has seen substantial growth in recent years. As a result, there has been an increased investment in LNG export terminals and associated infrastructure along the Gulf Coast. These terminals receive natural gas from pipelines, convert it into LNG, and then transport it via specialized LNG carriers to international markets. With the growing emphasis on renewable energy sources, the oil and gas industry has also started to integrate renewable energy technologies into its infrastructure. This includes incorporating solar and wind power for electricity generation at production sites, as well as exploring opportunities for carbon capture, utilization, and storage (CCUS) technologies to reduce emissions. Most of the U.S. oil and gas infrastructure is aging, requiring regular maintenance, repairs, and upgrades. This presents an ongoing challenge for the industry, as ensuring the integrity and safety of existing infrastructure remains a top priority. Investments are being made to address pipeline integrity, corrosion prevention, and leak detection systems.
 

COVID-19 Impact

COVID-19 led to a sharp decline in global oil and gas demand as lockdown measures were implemented and travel restrictions were imposed. The reduced demand for petroleum products, such as gasoline and jet fuel, impacted the need for new infrastructure development and led to delays or cancellations of planned projects. The pandemic caused a collapse in oil prices due to a combination of oversupply and weak demand. The price volatility negatively affected investment decisions in the oil and gas sector, making companies more cautious about committing to new infrastructure projects or expansions. Many oil and gas companies faced financial challenges during the pandemic, with lower revenue and profitability. As a result, capital expenditure budgets were cut, leading to delays or cancellations of infrastructure projects. Companies prioritized preserving cash and reducing debt rather than investing in new infrastructure.
 

U.S. Oil & Gas Infrastructure Market Trends

The growing regulatory pressure toward environmental protection, emissions reduction, and climate change has led to a greater focus on implementing environmentally sustainable practices, reducing greenhouse gas emissions, and improving the overall environmental footprint of oil and gas infrastructure. Growing technological advancements including automation, remote monitoring, and digitalization play a crucial role in the oil and gas infrastructure sector in enhancing the operational efficiency, improve safety, and optimize asset management. In addition, the increasing use of data analytics and artificial intelligence is also gaining traction for predictive maintenance and optimizing resource allocation. The development of unconventional oil and gas resources, including shale formations, has significantly increased oil and gas production across the country. This has led to the need for infrastructure development to support the extraction, processing, and transportation of these resources.
 

The expansion of global trade and the increasing demand for natural gas have driven the growth of liquefied natural gas (LNG) exports. LNG terminals and associated infrastructure, including pipelines and storage facilities, are being developed to facilitate the export of natural gas to international markets. The U.S. is heavily investing in expanding their oil and gas infrastructure to diversify their energy sources and reduce dependence on imports. Developing domestic production capabilities and building infrastructure helps enhance energy security by reducing reliance on foreign sources. Technological advancements play a significant role in the growth of oil and gas infrastructure. Innovations in drilling techniques, such as horizontal drilling and hydraulic fracturing (fracking), have unlocked previously inaccessible reserves. Additionally, advancements in pipeline construction, automation, remote monitoring, and digitalization contribute to the expansion and optimization of infrastructure.
 

U.S. Oil & Gas Infrastructure Market Analysis

Based on category, the market is segmented as surface & lease equipment, gathering & processing, oil, gas & NGL pipelines, oil & gas storage, refining & oil products transport, and export terminals. The oil, gas & NGL pipelines segment held a majority of market value of over USD 22 billion in 2022. The U.S. oil & gas infrastructure market has witnessed a significant growth owing to the surging expansion of natural gas pipelines to support the growing production and demand for natural gas. This includes pipelines connecting production regions, such as the Marcellus and Utica shale formations in the Northeast, to demand centers, export terminals, and liquefied natural gas (LNG) facilities along the Gulf Coast.
 

The development of shale oil resources, particularly in regions like the Permian Basin, has driven the need for new pipelines to transport crude oil from production areas to refineries and export terminals. The construction of pipelines helps facilitate the efficient movement of oil to markets and reduces reliance on rail or truck transportation. Pipeline safety and regulatory oversight remain significant concerns in the industry. There is an ongoing focus on maintaining the integrity of existing pipelines and ensuring compliance with safety regulations. Investments are being made in pipeline monitoring technology, leak detection systems, and preventive maintenance to enhance safety and minimize environmental impacts.
 

The U.S. has experienced significant growth in liquefied natural gas (LNG) exports. This has led to an increase in the construction and expansion of LNG export terminals along the Gulf Coast. These terminals receive natural gas from pipelines, convert it into LNG, and then load it onto specialized LNG carriers for international export. In recent years, the U.S. has lifted restrictions on crude oil exports, leading to a surge in exports of U.S. crude oil. This has created a demand for export facilities that can handle and load crude oil onto tankers for transportation to global markets. Existing refineries and storage terminals have been modified or expanded to accommodate crude oil exports. The growth of shale gas production in the United States has resulted in a surplus of ethane, which is a key feedstock for petrochemical manufacturing. Ethane export terminals have been developed to export excess ethane to international markets, where it is used as a feedstock for the production of plastics and other petrochemical products.
 

The U.S. held a market share of over 10% of the global oil & gas infrastructure market in 2022. Stringent environmental and safety regulations impose requirements on the oil and gas industry to operate safely and responsibly. Compliance with regulations may necessitate infrastructure upgrades, maintenance, and the adoption of technologies that reduce environmental impacts, enhance safety measures, and improve operational efficiency. Geopolitical dynamics, such as changes in global oil and gas markets, geopolitical tensions, and shifts in supply and demand patterns, can influence infrastructure development. For example, geopolitical events that disrupt traditional supply routes may prompt the development of new infrastructure to ensure uninterrupted supply.
 

U.S. Oil & Gas Infrastructure Market Share

Some of the major industry players operating across the U.S. oil & gas infrastructure market are:

• Halliburton
•  ONEOK
•  NGL Energy Partners LP
•  Enterprise Products Partners L.P
•  WILLIAMS
•  Hatch Ltd
•  Occidental Petroleum Corporation
•  Marathon Oil Company
•  Energy Transfer LP,
• BP p.l.c.,
• ConocoPhillips Company
•  TotalEnergies
•  Chevron Corporation
•  Baker Hughes
•  Exxon Mobil Corporation
•  Shell
•  Royal Vopak
•  Schlumberger Limited
•  Kinder Morgan
•  Centrica plc

 These players focus on mergers and strategic partnerships for market expansion. Furthermore, these players are increasingly investing in research & development activities, which enable them to introduce innovative services and garner maximum revenue in the market.
 

U.S. oil & gas infrastructure market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion from 2019 to 2032, for the following segments:

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By Category

• Surface and Lease Equipment
• Gathering & Processing
• Oil, Gas & NGL Pipelines
• Oil & Gas Storage
• Refining & Oil Products Transport
• Export Terminals