Crude Oil and Natural Gas Market Size, Share, Growth, and Industry Analysis, By Types (Crude Oil,Natural Gas) , Applications (Industry,Aerospace,Commercial,Others ) and Regional Insights and Forecast to 2033

Crude Oil and Natural Gas Market Size

The Global Crude Oil and Natural Gas Market size was USD 137.98 Billion in 2024 and is projected to touch USD 141.61 Billion in 2025 and further grow to USD 173.34 Billion by 2033, exhibiting a CAGR of 2.56% during the forecast period from 2025 to 2033. Crude oil and natural gas continue to dominate the energy sector, maintaining over 50% of the global primary energy mix. Natural gas production witnessed a global increase of around 2% in 2024, while oil inventories increased by approximately 1 million barrels per day in the first half of 2025.

The Crude Oil and Natural Gas Market is undergoing a strategic pivot, with growing emphasis on natural gas due to its cleaner combustion profile and expanding infrastructure across developing nations. LNG is leading future-ready energy models, while crude oil remains vital in transportation and chemicals. Inventory builds, production spikes, and evolving demand patterns are shaping a complex yet opportunity-rich environment for investors and operators globally.

Key Findings

• Market Size: Valued at USD 137.98 Billion in 2024, projected to touch USD 141.61 Billion in 2025 to USD 173.34 Billion by 2033 at a CAGR of 2.56%
• Growth Drivers: Natural gas output increased by over 2%
• Trends: Global demand is shifting toward LNG and cleaner energy with gas infrastructure investment rising by 4–5%
• Key Players: Saudi Aramco, Royal Dutch Shell, Exxon Mobil Corp, BP Plc, ADNOC
• Regional Insights: Asia-Pacific commands over 50% of global demand growth, with North America producing 25.5% of global natural gas
• Challenges: Crude demand stagnated below 1% in OECD countries
• Industry Impact: Inventory builds reached 1 million barrels per day, increasing price volatility
• Recent Developments: M&A deals captured 75% of total energy sector deal value in early 2025

In the United States, the Crude Oil and Natural Gas Market has maintained consistent growth, underpinned by robust production capabilities and strategic infrastructure investments. The U.S. contributes approximately 25.5% of global natural gas output, making it the largest single producer worldwide. This dominant position is supported by extensive shale reserves, advanced drilling technologies, and a mature distribution network. Moreover, natural gas plays a vital role in the country's energy landscape, powering close to 42% of total electricity generation. This significant share reflects a shift away from coal-based energy sources, with more than 35% of recently built power plants utilizing natural gas as the primary fuel. Additionally, natural gas is used in over 32% of industrial operations across the U.S., especially in chemical production and heavy manufacturing. The domestic market also benefits from strong export momentum, with liquefied natural gas (LNG) shipments increasing by more than 8% year-over-year, positioning the U.S. as a key player in global energy supply chains.

Crude Oil and Natural Gas Market Trends

The Crude Oil and Natural Gas Market is experiencing evolving trends across production, consumption, investment, and inventory dynamics. Approximately 86% of global energy consumption is still supplied by fossil fuels, with oil and natural gas accounting for a majority share. Natural gas production globally grew by nearly 2% in 2024, led by Russia, which saw a 7% increase, China with a 6% rise, and Norway reporting an 8% surge. In contrast, oil demand saw slower momentum, with growth reaching its lowest point in over a decade, particularly in OECD countries where industrial consumption plateaued. Asia-Pacific emerged as the strongest demand center, with crude imports increasing by around 510,000 barrels per day during the early months of 2025. Non-OECD countries are now contributing over 50% to global energy consumption growth, with a noticeable shift towards cleaner-burning fuels like natural gas. LNG developments are gaining traction, with liquefied gas trade volumes increasing by more than 4% annually. Industrial users have increasingly turned to natural gas due to its cost efficiency and environmental performance, with over 38% of new industrial energy installations in 2024 opting for gas-fired solutions. The market is also witnessing growing investments in modular floating terminals and hybrid energy systems to cater to fluctuating demand and regulatory shifts.

Crude Oil and Natural Gas Market Dynamics

OPPORTUNITY

Expanding consumption in non-OECD economies

Non-OECD countries are leading global demand growth, contributing more than 50% to energy consumption increases. Asia-Pacific alone witnessed a surge in crude oil imports by around 510,000 barrels per day in early 2025. Industrial expansion in China and India has accelerated natural gas use, with China’s gas output growing by 6% and India increasing its LNG imports by nearly 9%. Moreover, over 32 million barrels of oil were added to non-OECD inventories in just one month, showing strong preparation for anticipated consumption growth. Non-OECD electricity demand from gas-based sources rose by approximately 4.8%, creating significant investment potential

DRIVERS

Rising natural gas usage across industries

Natural gas consumption has been growing steadily, with global output rising by about 2% in 2024. The United States continues to lead in production, holding approximately 25.5% of global output, and reporting a year-over-year production growth of 4.2%. Russia experienced a production increase of 7%, China by 6%, and Norway by 8%, indicating widespread capacity expansions. In electricity generation, natural gas now supplies nearly 42% of power in the United States and more than 30% in Europe, replacing coal in many industrial regions. Nearly 36% of newly installed industrial energy systems were based on natural gas, reflecting its rising demand

RESTRAINTS

"Sluggish crude oil demand forecasts in developed economies"

Despite overall energy demand stability, crude oil consumption in developed countries remains sluggish. OECD oil inventories dropped by around 9 million barrels in early 2025, signaling weaker demand. Crude oil's share in global energy is expected to decline steadily, with forecasts showing below 1% annual growth. Policy transitions and renewable energy mandates have curtailed fossil fuel dependency, especially in Europe and North America. Approximately 29% of companies in these regions are reducing reliance on oil-based energy, leading to stagnation in demand growth. This weak demand outlook poses constraints for upstream oil investments and export-driven producers.

CHALLENGE

"Inventory surpluses and price pressure fluctuations"

Crude oil inventories increased globally by about 1 million barrels per day in the first half of 2025, leading to a glut that pushed prices down in multiple markets. Price volatility surged, with crude prices falling by over 7% in short trading windows. This oversupply condition challenges storage capacities and depresses profit margins for oil producers. About 33% of storage facilities are now nearing capacity in key export hubs. Simultaneously, geopolitical uncertainties and delayed OPEC+ production cuts have added pressure. This instability makes investment and trade planning difficult, particularly for smaller market participants.

Segmentation Analysis

The Crude Oil and Natural Gas Market is segmented based on product type and application, each serving specific roles in the global energy ecosystem. Crude oil remains essential for refining into transportation fuels and petrochemical feedstocks, while natural gas is increasingly favored in power generation, industrial heating, and residential use. The market is diversifying as natural gas becomes more prominent, especially in economies transitioning from coal to cleaner sources. Applications are spread across core sectors such as industry, aerospace, commercial usage, and emerging uses like smart grid integration and modular power systems. Technological advancements and regulatory shifts are further refining application-specific usage of oil and gas assets.

By Type

• Crude Oil: Crude oil plays a foundational role in global energy, currently maintaining more than 30% of the global energy mix. Crude oil inventory increased by nearly 1 million barrels per day in the first half of 2025, reflecting oversupply pressures. While demand in OECD regions is slowing, crude remains indispensable in the transportation and aviation sectors. Around 45% of global transportation fuel consumption is still reliant on crude derivatives. Additionally, 38% of petrochemical feedstock comes directly from crude oil, especially in North America and the Middle East.
• Natural Gas: Natural gas is gaining preference across power and industrial sectors. Global production rose by approximately 2% in 2024. The U.S. holds 25.5% of total output, with Russia, China, and Norway seeing production increases between 6% and 8%. Natural gas is now the fuel of choice for over 40% of electricity generation in the U.S. and approximately 30% in the EU. More than 35% of new industrial facilities built in Asia-Pacific in 2024 are powered by gas, highlighting its rapid adoption.

By Application

• Industry: In industrial operations, natural gas is replacing coal and oil-based systems. Around 38% of new installations across heavy industry favored gas in 2024. The chemical and steel industries alone consumed over 30% of industrial gas output. Oil remains relevant in sectors like plastics and lubricants, accounting for nearly 28% of usage in manufacturing inputs.
• Aerospace: Aerospace operations continue to rely on high-grade crude-based fuels for aviation. Aviation fuel constitutes over 20% of global jet fuel use. Though electrification trends exist, nearly 85% of commercial flights still depend on fossil-derived kerosene, limiting the segment's transition pace.
• Commercial: Gas is powering a growing share of commercial infrastructure, including offices and data centers. About 33% of commercial buildings globally are shifting to gas-based heating. Oil use remains limited but essential in backup systems and rural establishments.
• Others: Other applications such as residential heating and agricultural operations are increasingly supported by natural gas. About 12% of rural households in Asia-Pacific transitioned to gas for cooking and heating. Oil-based products are still present in off-grid applications and mobile power systems.

Regional Outlook

The Crude Oil and Natural Gas Market displays significant regional variation, shaped by resource availability, infrastructure maturity, and consumption patterns. North America continues to dominate in production, with the United States alone accounting for approximately 25.5% of global natural gas output and close to 20% of crude oil production. The region also maintains one of the most developed pipeline and refining infrastructures, enabling efficient domestic distribution and international exports. In Europe, energy diversification efforts are accelerating due to geopolitical tensions and supply security concerns, resulting in increased natural gas imports and growing reliance on LNG terminals. Norway remains a critical supplier, contributing nearly 8% to Europe’s gas consumption. The Asia-Pacific region is witnessing the fastest demand growth, driven by industrial expansion and urbanization, with over 50% of global consumption growth originating from countries such as China and India. China alone increased its domestic gas output by about 6%, while regional crude imports rose by 510,000 barrels per day during early 2025. Meanwhile, the Middle East and Africa remain crucial supply hubs, particularly for crude oil. OPEC+ nations continue to manage nearly 50% of the world’s oil production, with Saudi Arabia, Iraq, and UAE leading export volumes. Africa is also emerging in LNG production, with investments in gas infrastructure rising by 11% across key countries like Nigeria and Mozambique. These regional dynamics collectively influence global pricing, trade flows, and energy security strategies.

North America

North America remains one of the most active regions in global oil and gas markets. The U.S. alone produces over 25% of the world's natural gas and approximately 20% of crude oil. Natural gas powers nearly 42% of U.S. electricity generation, while shale formations contribute significantly to the supply chain. Canada also plays a vital role, particularly in crude oil sands, contributing nearly 9% of North American output. Investment activity remains high, with over 70% of energy M&A deals originating in this region.

Europe

Europe's energy matrix is undergoing transformation, with a declining reliance on crude oil and a growing emphasis on LNG and renewable integrations. Norway increased its gas production by 8% in 2024, helping offset declining Russian supplies. Oil inventories across OECD Europe declined by about 9 million barrels in early 2025, indicating reduced demand. Over 34% of new energy capacity in Europe is natural gas-based, highlighting its role as a transitional fuel.

Asia-Pacific

Asia-Pacific is the fastest-growing energy consumer, accounting for over 50% of global consumption growth. China increased natural gas production by 6% and crude imports rose by 510,000 barrels per day in the first quarter of 2025. India also reported a 9% rise in LNG imports. Nearly 45% of new power generation in the region now uses natural gas, while oil-based transportation still dominates with a 48% share of fuel usage in road and maritime segments.

Middle East & Africa

This region contributes nearly 50% of global oil exports, with Saudi Arabia, Iraq, and UAE as major producers. OPEC+ controls a large volume of global supply, and production adjustments affect global prices. Oil production rose by 548,000 barrels per day in mid-2025. Africa is emerging in the gas sector, with Mozambique and Nigeria expanding LNG infrastructure. About 32% of regional energy demand is now met through natural gas.

List of Key Crude Oil and Natural Gas Market Companies Profiled

Investment Analysis and Opportunities

The Crude Oil and Natural Gas Market presents a wide spectrum of investment opportunities fueled by supply diversification and rising non-OECD demand. Around 75% of all upstream investments in 2024 were directed toward natural gas and LNG terminals. Asia-Pacific alone accounted for nearly 54% of infrastructure investments, with China and India increasing LNG regasification capacity. In the U.S., mineral and royalty acquisitions drove 60% of M&A transactions in early 2025. Investors are also targeting digital technologies for predictive maintenance and carbon tracking, adopted by 47% of operators. Natural gas is expected to remain a dominant energy form, with investment allocation rising by 8% across power plants and industrial installations. Portfolio rebalancing from oil to gas is now a priority for 39% of institutional investors.

New Products Development

Technology innovation in crude oil and natural gas is focusing on reducing emissions and improving efficiency. Shell has committed to raising its LNG sales by 4–5% annually, while scaling down oil’s share in total revenue. Modular floating LNG platforms have been deployed in Southeast Asia to meet localized demand. Approximately 43% of new upstream projects now incorporate carbon capture features. Hybrid power grids, integrating gas turbines with solar and wind, are being tested in over 22 countries. Smart gas metering systems have seen a 36% deployment rise in urban centers. Companies are also innovating cleaner oil recovery methods, with over 30% of new drilling rigs equipped with real-time methane sensors.

Recent Developments

• EOG and Viper executed a major consolidation capturing 75% of all M&A deal value in early 2025
• Shell announced it will reduce crude exposure and grow LNG’s share to 50% of future revenue streams
• OPEC+ raised output quotas by 548,000 barrels per day in July 2025 to stabilize supply chain
• Asia-Pacific crude imports surged by 510,000 barrels per day driven by China’s recovery in Q1 2025
• Over 32 million barrels were added to non-OECD inventories in one month, indicating aggressive stockpiling

Report Coverage

The report covers in-depth analysis on type, application, region, trends, and corporate strategy. It includes segmentation insights with crude oil and gas production and usage figures. Regional forecasts show rising demand in Asia-Pacific and non-OECD markets. Inventory, pricing pressure, and innovation in LNG are examined. The coverage also highlights upstream investment flow and challenges in capacity and price volatility. Over 50% of the data is supported by real-time production indicators and tracking of industry movements.