The global onshore oil and gas pipeline market to grow at a CAGR of 6.59% during the period 2017-2021.
Global Onshore Oil and Gas Pipeline Market 2017-2021 , has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the new construction of pipelines and exclude operations and maintenance cost of pipelines.
According to the report, one of the major drivers for this market is Rising global oil and gas demand. According to the US Energy Information Administration, global consumption of liquid fuel stood at 96.47 mbpd in 2016 compared with 86.43 mbpd in 2007. The US leads in global liquid fuel consumption with a total consumption of 19.2 mbpd, followed by China and India with 11.5 mbpd and 4.3 mbpd liquid fuel consumption, respectively.
Pipelines associated with the oil and gas business are utilized to transport a multitude of commodities such as crude oil, natural gas, and refined products over various distances. Onshore pipelines are constructed over land and may even stretch across different countries. Onshore pipelines may either be laid underground or above ground. Crude oil and natural gas are found in rock formations in the earth's crust. The depths at which oil and gas reservoirs occur can vary from a few meters to more than 40,000 feet. The valuable petroleum resources are extracted by drilling through the surface to the depths where the resources occur.
Further, the report states that one of the major factors hindering the growth of this market is Increasing use of renewable energy. Renewables have now become competitive with fossil fuels and are being used as primary sources of energy in many countries. As per the Eurostat, the share of renewables in the gross primary energy consumption in the EU nations is expected to rise by 4% during 2015-2020, owing to supportive government regulations.
In 2016, renewable energy accounted for more than 50% share of the energy mix in many countries of Europe, including Norway, Iceland, and Sweden. This is owing to the imposition of stringent emission norms by the governments all across Europe.