U.S. Oil & Gas Electrification Market Size By Technology (Offshore Wind, Underground Cables, Solar), By Application (LNG/FLNG, Offshore Platform Electrification, Refinery) & Global Forecast, 2023-2032

U.S. Oil & Gas Electrification Market Size

U.S. Oil & Gas Electrification Market size crossed USD 93 million in 2022 and is anticipated to grow at a CAGR of over 5.1% from 2023 to 2032. Oil & gas electrification refers to the process of utilizing electric power to replace or supplement traditional fossil fuel-based energy sources in the oil and gas industry. This involves the use of electrically powered equipment and machinery, as well as the adoption of renewable energy sources such as solar and wind power to reduce reliance on fossil fuels.
 

The global oil & gas electrification market is poised to cross USD 23 billion by 2030. The industry in the U.S. is set to upsurge on account of growing innovative and advanced technology systems in energy production along with paradigm shift to limit the traditional energy generation sources. Favorable government targets aimed at reducing reliance on fossil-fuel-based energy generation systems in line with continuous development of efficient and cost-effective power technology systems will influence the industry growth.
 

Strict regulatory policies and schemes to electrify refinery and onshore fields along with increasing demand toward reduction of carbon footprints will positively influence the business outlook. Growing integration of renewable technology systems including solar and wind systems in line with extensive investment in research & development activities to foster remote monitoring & control system will positively influence the industry landscape. Improving energy security and reducing dependence on fossil fuels coupled with potential for operational efficiency improvements and cost savings will propel the industry dynamics.

COVID-19 Impact

The industry has impacted from the COVID-19 outbreak owing to the strict restrictions and reduced workforce management in various regions. However, the declining number of infected cases, the industry is anticipated on account of increasing government efforts to develop low-emission energy systems coupled with rising adoption of sustainable energy sources. Furthermore, the market is expected to expand due to growing concerns about carbon emissions along with favorable policies and mandates will encourage the adoption of renewable energy sources.
 

U.S. Oil & Gas Electrification Market Analysis

The U.S. oil & gas electrification market is projected to increase on account of growing concern about carbon emissions in line with ongoing shift to reduce dependence on traditional fuel sources. Additionally, the rising funding for renewable energy sector growth in the country, along with ongoing technological advancements will further accelerate the industry's potential. Increasing LNG trade in line with strict regulations to reduce carbon emissions has spurred the development of new LNG terminals and pipeline infrastructure.
 

The oil & gas industry has observed an energy transition on account of rapid change in environment regulatory norms and ongoing adoption of clean energy sources. The shift involves a move from traditional fossil fuels to renewable energy sources comprising of solar, wind, and hydropower to meet the industry's emission targets. The industry is increasingly turning to natural gas and renewable energy sources to reduce dependence on diesel generators and other conventional power sources. In addition, the implementation of favorable government policies and tax incentive programs for the adoption of renewable energy sources will drive the widespread adoption across the industry.
 

The U.S. oil & gas electrification market from solar technology segment will surpass USD 7 million by 2032, owing to growing demand to reduce carbon emission in line with introduction of government initiative to support electrify networks across refineries and onshore fields. The integration of renewable energy sources comprising of solar and wind systems along with surging research & development activities to expand monitoring and remote-control facilities for increased security will provide positive impact on the industry. Additionally, ongoing modernization and expansion of various projects in oil & gas refineries and platforms will excel the industry landscape.
 

The U.S. oil & gas electrification market from offshore platform application segment was valued at over USD 35 million in 2022, attributed to growing emphasis on sustainable solutions for energy generation and government initiatives to replace conventional fuel sources. Increasing investment from both public and private sector coupled with rapid commissioning of several projects across the oil & gas sector will support the business scenario. In addition, rising demand for renewable energy integration to address environment concern will contribute the penetration of clean energy sources across the application.
 

The refinery application will grow at a significant rate on account of ongoing integration of solar energy technology to provide sustainable power for operations. Growing focus toward reducing reliance on traditional fuel sources in line with ongoing technological advancements will foster the industry dynamics. Increasing deployment of clean power generation technology along with ongoing refurbishment and development projects of refineries will sway the industry landscape. Furthermore, strict government measures and policies toward zero emission solutions coupled with introduction of new projects and schemes will energize business scenario.
 

U.S. Oil & Gas Electrification Market Share

Key players operating in the U.S. oil & gas electrification market include :

• ABB
• NEXANS
• Equinor ASA
• Siemens
• General Electric
• Aker Solutions
• Prysmian Group
• Southwire Company, LLC
• LS Cable & System USA
• ZTT
• Shell
• BP Plc
• Exxon Mobil Corporation
• TotalEnergies
• Chevron Corporation
   

U.S. Oil & Gas Electrification Industry News

• In May 2022, Chevron Corporation has sanctioned to the Ballymore project in the U.S. deepwater of GOM (Gulf of Mexico). This project designed capacity of 75,000 barrels of crude oil/day, and it will be developed for the 3 miles of subsea tieback of existing Blind Faith platform operated by Chevron. This is the first project of the company in the Norphlet trend of the U.S. gulf coast.
   
• In March 2022, TotalEnergies and Sempra Infrastructure, a division of Sempra initiated North American has signed a contract two MOU, one is Sempra Infrastructure project of Vista Pacífico LNG export terminal in Mexico and other various projects. After the completion of the project this will be the mid-scale facility on the Mexico’s west coast.
   

The U.S. oil & gas electrification market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Million’ from 2019 to 2032 for the following segments:

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Market, By Technology

• Offshore Wind
• Underground Cables
• Solar
• Others

Market, By Application

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