United Kingdom Oil and Gas Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)
Description
The United Kingdom oil and gas market was valued at USD 330.50 Billion in 2024. The industry is expected to grow at a CAGR of 1.65% during the forecast period of 2025-2034 to attain a valuation of USD 389.26 Billion by 2034.
United Kingdom Oil and Gas Market Growth
The United Kingdom oil and gas market benefits the country by increasing GDP and job creation, improving energy security through decreased reliance on imports, and fostering technological advancements in offshore drilling and renewable energy. These elements contribute to overall economic stability and progress in the wider energy sector.
United Kingdom Oil and Gas Market Analysis
The United Kingdom oil and gas market dynamics and trends show that the downstream oil sector is a significant contributor to the nation's GDP. The six largest refineries Stanlow, Prax Lindsey, Pembroke, Fawley, Grangemouth, and Humber have a combined annual capacity of 58 million tonnes (MT) and exported over 21 MT in 2022.
Natural gas is an increasingly popular option for electricity generation in Europe due to increased availability and the advantage of releasing lower amounts of CO2 compared to coal. Natural gas is also widely used for heating and cooking and in the production of key chemicals for fertilisers and plastics, which contributes to the United Kingdom oil and gas industry growth.
Figure: Energy Consumption by Fuel Type (in %) in the UK, 2022
United Kingdom Oil and Gas Industry Outlook
According to the BP Statistical Review of World Energy, in 2021, the United Kingdom showed strong energy consumption trends across different fuel types. Oil consumption increased to 2.50 exajoules from 2.35 exajoules in 2020. Natural gas usage also saw a modest rise, moving from 2.63 exajoules in 2020 to 2.77 exajoules in 2021. Overall, the UK's total primary energy consumption grew from 7.06 exajoules in 2020 to 7.18 exajoules in 2021, indicating a steady rise in energy demand and use. This rising energy consumption reflects the need for a stable and reliable energy supply, bolstering the demand of United Kingdom oil and gas market.
According to the BP Statistical Review of World Energy, in 2019, the United Kingdom's oil production was 1,118 thousand barrels per day, showing stability compared to 1,092 thousand barrels per day in 2018. This marked a continued recovery from a decade-low of 820 thousand barrels per day in 2014. Production in 2014 was at 854 thousand barrels per day, and it increased to 964 thousand barrels per day by 2015. This increasing oil production has resulted in bolstering the growth of United Kingdom oil and gas industry revenue.
The United Kingdom has demonstrated a significant upward trajectory in renewable energy generation over the past decade. In 2011, the UK generated 29.5 terawatt-hours (TWh) of renewable energy. This figure has seen a substantial increase, reaching 127.8 TWh by 2020. In 2012, generation rose to 35.9 TWh, marking an increase of 16 TWh from 2011. By 2013, the generation further escalated to 48.5 TWh. The years 2014 and 2015 witnessed substantial growth, with renewable energy generation reaching 58.6 TWh and 77.1 TWh, respectively. By 2016, renewable energy generation had increased to 77.6 TWh. The momentum continued into 2017 and 2018, with renewable energy generation reaching 93.0 TWh and 104.6 TWh, respectively. This increase in renewable energy generation aligns with the UK's carbon reduction goals, necessitating advancements in CCS technology, further contributing to the United Kingdom oil and gas market revenue.
The oil and gas sector significantly boosts the UK’s GDP and provides numerous jobs, contributing to the United Kingdom oil and gas demand growth.
A well-developed network of refineries and pipelines supports efficient production and distribution.
Advanced technology and innovation in offshore drilling and extraction enhance production capabilities and operational efficiency.
The industry faces scrutiny over environmental impact and sustainability, leading to potential regulatory challenges.
Fluctuating global oil prices can impact profitability and market stability.
Some facilities and infrastructure require significant investment to maintain or upgrade.
Investing in renewable energy technologies can diversify offerings and align with global sustainability trends.
Increasing exports of refined products can boost revenues and market presence.
Continued innovation in extraction and processing can improve efficiency and reduce costs.
Stricter environmental regulations could impose additional operational costs and constraints.
Intense competition from both domestic and international players can impact market share and profitability.
Economic downturns or geopolitical instability can disrupt supply chains and affect the United Kingdom oil and gas industry growth.
Key Players in the United Kingdom Oil and Gas Market and Their Key Initiatives
Shell plc
Launched renewable energy ventures to meet the growing demand of the United Kingdom oil and gas market.
Invested in North Sea carbon capture projects.
TotalEnergies SE
Initiated carbon capture projects to reduce emissions in the UK North Sea.
Invested in offshore wind farms.
Chevron Corporation
Partnered with UK firms to advance carbon capture and storage (CCS) technologies to capture the United Kingdom oil and gas market opportunities.
Expanded investment in offshore drilling projects.
Energean PLC
Secured a contract for carbon capture utilisation and storage (CCUS) at the Scott and Telford fields.
Commenced production at the Glengorm field.
United Kingdom Oil and Gas Industry Segmentation
“United Kingdom Oil and Gas Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Sector:
Upstream
Midstream
Downstream
Market Breakup by Extraction:
On-Shore
Off-Shore
Market Breakup by End Use:
Transport
Agriculture, Public and Commercial Services
Industrial Energy Use
Household Energy Use
United Kingdom Oil and Gas Market Share
The transport sector is the leading segment in the downstream oil market by end-use, with a substantial portion of the UK's energy for transportation derived from petroleum products. Petrol fuels cars and motorcycles, while diesel powers buses, trucks, and marine vessels. In 2022, road transport saw a 3% increase, and energy consumption for air travel doubled, indicating strong oil demand. Following transport, agriculture and public and commercial services contributed significantly to the growth of the United Kingdom oil and gas industry.
Leading Companies in the United Kingdom Oil and Gas Market
The companies in the United Kingdom oil and gas market are deploying innovative technologies in the production and exploration activities and attracting highly skilled talent to ensure smooth operations.
BP p.l.c.
Shell plc
TotalEnergies SE
Chevron Corporation
Energean PLC
Exxon Mobil Corporation
ConocoPhillips Company
Centrica plc
Harbour Energy
EnQuest Plc
Dana Petroleum Limited
United Kingdom Oil and Gas Market Growth
The United Kingdom oil and gas market benefits the country by increasing GDP and job creation, improving energy security through decreased reliance on imports, and fostering technological advancements in offshore drilling and renewable energy. These elements contribute to overall economic stability and progress in the wider energy sector.
United Kingdom Oil and Gas Market Analysis
The United Kingdom oil and gas market dynamics and trends show that the downstream oil sector is a significant contributor to the nation's GDP. The six largest refineries Stanlow, Prax Lindsey, Pembroke, Fawley, Grangemouth, and Humber have a combined annual capacity of 58 million tonnes (MT) and exported over 21 MT in 2022.
Natural gas is an increasingly popular option for electricity generation in Europe due to increased availability and the advantage of releasing lower amounts of CO2 compared to coal. Natural gas is also widely used for heating and cooking and in the production of key chemicals for fertilisers and plastics, which contributes to the United Kingdom oil and gas industry growth.
Figure: Energy Consumption by Fuel Type (in %) in the UK, 2022
United Kingdom Oil and Gas Industry Outlook
According to the BP Statistical Review of World Energy, in 2021, the United Kingdom showed strong energy consumption trends across different fuel types. Oil consumption increased to 2.50 exajoules from 2.35 exajoules in 2020. Natural gas usage also saw a modest rise, moving from 2.63 exajoules in 2020 to 2.77 exajoules in 2021. Overall, the UK's total primary energy consumption grew from 7.06 exajoules in 2020 to 7.18 exajoules in 2021, indicating a steady rise in energy demand and use. This rising energy consumption reflects the need for a stable and reliable energy supply, bolstering the demand of United Kingdom oil and gas market.
According to the BP Statistical Review of World Energy, in 2019, the United Kingdom's oil production was 1,118 thousand barrels per day, showing stability compared to 1,092 thousand barrels per day in 2018. This marked a continued recovery from a decade-low of 820 thousand barrels per day in 2014. Production in 2014 was at 854 thousand barrels per day, and it increased to 964 thousand barrels per day by 2015. This increasing oil production has resulted in bolstering the growth of United Kingdom oil and gas industry revenue.
The United Kingdom has demonstrated a significant upward trajectory in renewable energy generation over the past decade. In 2011, the UK generated 29.5 terawatt-hours (TWh) of renewable energy. This figure has seen a substantial increase, reaching 127.8 TWh by 2020. In 2012, generation rose to 35.9 TWh, marking an increase of 16 TWh from 2011. By 2013, the generation further escalated to 48.5 TWh. The years 2014 and 2015 witnessed substantial growth, with renewable energy generation reaching 58.6 TWh and 77.1 TWh, respectively. By 2016, renewable energy generation had increased to 77.6 TWh. The momentum continued into 2017 and 2018, with renewable energy generation reaching 93.0 TWh and 104.6 TWh, respectively. This increase in renewable energy generation aligns with the UK's carbon reduction goals, necessitating advancements in CCS technology, further contributing to the United Kingdom oil and gas market revenue.
The oil and gas sector significantly boosts the UK’s GDP and provides numerous jobs, contributing to the United Kingdom oil and gas demand growth.
A well-developed network of refineries and pipelines supports efficient production and distribution.
Advanced technology and innovation in offshore drilling and extraction enhance production capabilities and operational efficiency.
The industry faces scrutiny over environmental impact and sustainability, leading to potential regulatory challenges.
Fluctuating global oil prices can impact profitability and market stability.
Some facilities and infrastructure require significant investment to maintain or upgrade.
Investing in renewable energy technologies can diversify offerings and align with global sustainability trends.
Increasing exports of refined products can boost revenues and market presence.
Continued innovation in extraction and processing can improve efficiency and reduce costs.
Stricter environmental regulations could impose additional operational costs and constraints.
Intense competition from both domestic and international players can impact market share and profitability.
Economic downturns or geopolitical instability can disrupt supply chains and affect the United Kingdom oil and gas industry growth.
Key Players in the United Kingdom Oil and Gas Market and Their Key Initiatives
Shell plc
Launched renewable energy ventures to meet the growing demand of the United Kingdom oil and gas market.
Invested in North Sea carbon capture projects.
TotalEnergies SE
Initiated carbon capture projects to reduce emissions in the UK North Sea.
Invested in offshore wind farms.
Chevron Corporation
Partnered with UK firms to advance carbon capture and storage (CCS) technologies to capture the United Kingdom oil and gas market opportunities.
Expanded investment in offshore drilling projects.
Energean PLC
Secured a contract for carbon capture utilisation and storage (CCUS) at the Scott and Telford fields.
Commenced production at the Glengorm field.
United Kingdom Oil and Gas Industry Segmentation
“United Kingdom Oil and Gas Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Sector:
Upstream
Midstream
Downstream
Market Breakup by Extraction:
On-Shore
Off-Shore
Market Breakup by End Use:
Transport
Agriculture, Public and Commercial Services
Industrial Energy Use
Household Energy Use
United Kingdom Oil and Gas Market Share
The transport sector is the leading segment in the downstream oil market by end-use, with a substantial portion of the UK's energy for transportation derived from petroleum products. Petrol fuels cars and motorcycles, while diesel powers buses, trucks, and marine vessels. In 2022, road transport saw a 3% increase, and energy consumption for air travel doubled, indicating strong oil demand. Following transport, agriculture and public and commercial services contributed significantly to the growth of the United Kingdom oil and gas industry.
Leading Companies in the United Kingdom Oil and Gas Market
The companies in the United Kingdom oil and gas market are deploying innovative technologies in the production and exploration activities and attracting highly skilled talent to ensure smooth operations.
BP p.l.c.
Shell plc
TotalEnergies SE
Chevron Corporation
Energean PLC
Exxon Mobil Corporation
ConocoPhillips Company
Centrica plc
Harbour Energy
EnQuest Plc
Dana Petroleum Limited
Table of Contents
130 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Europe Oil and Gas Market Overview
- 5.1 Key Industry Highlights
- 5.2 Europe Downstream Oil and Gas Historical Market (2018-2024)
- 5.3 Europe Downstream Oil and Gas Market Forecast (2025-2034)
- 5.4 Europe Oil and Gas Market by Type
- 5.4.1 Downstream Oil
- 5.4.2 Downstream Gas
- 5.5 Europe Oil and Gas Market by Country
- 5.5.1 United Kingdom
- 5.5.2 Germany
- 5.5.3 France
- 5.5.4 Italy
- 5.5.5 Others
- 6 United Kingdom Oil and Gas Market Overview
- 6.1 Upstream
- 6.2 Midstream
- 6.3 Downstream
- 7 United Kingdom Upstream Oil Market Analysis
- 7.1 United Kingdom Upstream Oil Historical Market (2018-2024)
- 7.2 United Kingdom Upstream Oil Market Forecast (2025-2034)
- 7.3 United Kingdom Upstream Oil Market by Extraction
- 7.3.1 On-Shore
- 7.3.1.1 Historical Trend (2018-2024)
- 7.3.1.2 Forecast Trend (2025-2034)
- 7.3.2 Off-Shore
- 7.3.2.1 Historical Trend (2018-2024)
- 7.3.2.2 Forecast Trend (2025-2034)
- 8 United Kingdom Midstream Oil and Gas Market Analysis
- 8.1 United Kingdom Midstream Oil and Gas Historical Market (2018-2024)
- 8.2 United Kingdom Midstream Oil and Gas Market Forecast (2025-2034)
- 9 United Kingdom Downstream Oil and Gas Market Analysis
- 9.1 United Kingdom Downstream Oil and Gas Historical Market (2018-2024)
- 9.2 United Kingdom Downstream Oil and Gas Market Forecast (2025-2034)
- 9.3 United Kingdom Downstream Oil and Gas Market by Type
- 9.3.1 Downstream Oil
- 9.3.1.1 Historical Trend (2018-2024)
- 9.3.1.2 Forecast Trend (2025-2034)
- 9.3.1.3 Market by End Use
- 9.3.1.3.1 Transportation
- 9.3.1.3.1.1 Historical Trend (2018-2024)
- 9.3.1.3.1.2 Forecast Trend (2025-2034)
- 9.3.1.3.2 Agriculture, Public and Commercial Services
- 9.3.1.3.2.1 Historical Trend (2018-2024)
- 9.3.1.3.2.2 Forecast Trend (2025-2034)
- 9.3.1.3.3 Industrial Energy Use
- 9.3.1.3.3.1 Historical Trend (2018-2024)
- 9.3.1.3.3.2 Forecast Trend (2025-2034)
- 9.3.1.3.4 Household Energy Use
- 9.3.1.3.4.1 Historical Trend (2018-2024)
- 9.3.1.3.4.2 Forecast Trend (2025-2034)
- 9.3.2 Downstream Gas
- 9.3.2.1 Historical Trend (2018-2024)
- 9.3.2.2 Forecast Trend (2025-2034)
- 9.3.2.3 Market by End Use
- 9.3.2.3.1 Transportation
- 9.3.2.3.1.1 Historical Trend (2018-2024)
- 9.3.2.3.1.2 Forecast Trend (2025-2034)
- 9.3.2.3.2 Agriculture, Public and Commercial Services
- 9.3.2.3.2.1 Historical Trend (2018-2024)
- 9.3.2.3.2.2 Forecast Trend (2025-2034)
- 9.3.2.3.3 Industrial Energy Use
- 9.3.2.3.3.1 Historical Trend (2018-2024)
- 9.3.2.3.3.2 Forecast Trend (2025-2034)
- 9.3.2.3.4 Household Energy Use
- 9.3.2.3.4.1 Historical Trend (2018-2024)
- 9.3.2.3.4.2 Forecast Trend (2025-2034)
- 10 Market Dynamics
- 10.1 SWOT Analysis
- 10.1.1 Strengths
- 10.1.2 Weaknesses
- 10.1.3 Opportunities
- 10.1.4 Threats
- 10.2 Porter’s Five Forces Analysis
- 10.2.1 Supplier’s Power
- 10.2.2 Buyer’s Power
- 10.2.3 Threat of New Entrants
- 10.2.4 Degree of Rivalry
- 10.2.5 Threat of Substitutes
- 10.3 Key Indicators for Demand
- 10.4 Key Indicators for Price
- 11 Trade Data Analysis (HS Code: 271, 2711)
- 11.1 Major Exporting Countries
- 11.1.1 By Value
- 11.1.2 By Volume
- 11.2 Major Importing Countries
- 11.2.1 By Value
- 11.2.2 By Volume
- 12 Competitive Landscape
- 12.1 Supplier Selection
- 12.2 Key Global Players
- 12.3 Key Regional Players
- 12.4 Key Player Strategies
- 12.5 Company Profiles
- 12.5.1 BP p.l.c.
- 12.5.1.1 Company Overview
- 12.5.1.2 Product Portfolio
- 12.5.1.3 Demographic Reach and Achievements
- 12.5.1.4 Certifications
- 12.5.2 Shell plc
- 12.5.2.1 Company Overview
- 12.5.2.2 Product Portfolio
- 12.5.2.3 Demographic Reach and Achievements
- 12.5.2.4 Certifications
- 12.5.3 TotalEnergies SE
- 12.5.3.1 Company Overview
- 12.5.3.2 Product Portfolio
- 12.5.3.3 Demographic Reach and Achievements
- 12.5.3.4 Certifications
- 12.5.4 Chevron Corporation
- 12.5.4.1 Company Overview
- 12.5.4.2 Product Portfolio
- 12.5.4.3 Demographic Reach and Achievements
- 12.5.4.4 Certifications
- 12.5.5 Energean PLC
- 12.5.5.1 Company Overview
- 12.5.5.2 Product Portfolio
- 12.5.5.3 Demographic Reach and Achievements
- 12.5.5.4 Certifications
- 12.5.6 Exxon Mobil Corporation
- 12.5.6.1 Company Overview
- 12.5.6.2 Product Portfolio
- 12.5.6.3 Demographic Reach and Achievements
- 12.5.6.4 Certifications
- 12.5.7 ConocoPhillips Company
- 12.5.7.1 Company Overview
- 12.5.7.2 Product Portfolio
- 12.5.7.3 Demographic Reach and Achievements
- 12.5.7.4 Certifications
- 12.5.8 Centrica plc
- 12.5.8.1 Company Overview
- 12.5.8.2 Product Portfolio
- 12.5.8.3 Demographic Reach and Achievements
- 12.5.8.4 Certifications
- 12.5.9 Harbour Energy
- 12.5.9.1 Company Overview
- 12.5.9.2 Product Portfolio
- 12.5.9.3 Demographic Reach and Achievements
- 12.5.9.4 Certifications
- 12.5.10 EnQuest Plc
- 12.5.10.1 Company Overview
- 12.5.10.2 Product Portfolio
- 12.5.10.3 Demographic Reach and Achievements
- 12.5.10.4 Certifications
- 12.5.11 Dana Petroleum Limited
- 12.5.11.1 Company Overview
- 12.5.11.2 Product Portfolio
- 12.5.11.3 Demographic Reach and Achievements
- 12.5.11.4 Certifications
- 12.5.12 Others
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