The unconventional oil market valued for $666.0 billion in 2022 and is estimated to reach $940.3 billion by 2032, exhibiting a CAGR of 3.6% from 2023 to 2032.
Unconventional (oil & gas) reservoirs are accumulations where oil & gas phases are tightly bound to the rock fabric by strong capillary forces and require specialized measures for evaluation and extraction. As per estimation of International Energy Agency, despite substantial global efforts to transition away from fossil fuel-based energy sources to reduce environmental impact and address climate change, unconventional oil still contributes up to 25-30% of the global energy mix in 2040. This is contributed by renewable deployment pace limitations particularly in developing economies, and the need for energy-dense fuels in heavy/long-distance transport, as well as chemical feedstock (e.g., lubricants, plastics, fertilizers) and high-grade heat in industrial applications. Rise in demand in the context of both energy security and foreseeable depletion of aging conventional fossil resources has driven the development of more complex, difficultly exploitable reserves in particular, unconventional resources. Unconventional reserves have been estimated to account for up to 80% of total hydrocarbon resources, with conservatively ∼500-1,000 billion barrels (bbl) of recoverable unconventional oil.
In terms of oil demand in the Asia-Pacific region, mainly China and India are expected to dominate the market by 2040 due to rise in population and growth in economy and industrialization. Oil consumption is expected to decrease in Europe over the next decades due to rising sustainable energy policies. The future of unconventional oil development in the energy sector is a complex task due to the multitude of influencing factors, difference in viewpoints, and federal laws. These complexities make it challenging to provide a straightforward prediction for the unconventional oil industry's trajectory.
For the purpose of analysis, the unconventional oil market scope covers segmentation based on type, extraction method, application, and region. The report provides information on various types including heavy oil, extra heavy oil, bitumen, and oil shale. Furthermore, the major extraction methods covered in the study include traditional drilling techniques and advanced extraction techniques. Moreover, it outlines the details of the applications such as oil & gas and lubricant. In addition, it analyzes the current market trends across different regions such as North America, Europe, Asia-Pacific, and LAMEA.
The report outlines growing drivers, restraints, and opportunities to better understand market dynamics. This report further highlights key areas of investment. In addition, it includes analysis of Porter’s five forces to understand the competitive scenario and role of each stakeholder.
The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to increase their market share and sustain intense competition in the application. Canadian Natural, Chevron, Continental Resources Inc., ConocoPhillips, ExxonMobil Corporation, Imperial Oil Limited, PDVSA- Petroleos de Venezuela, S.A., Petróleo Brasileiro S.A. - Petrobras, Sasol Limited, and Suncor Energy Inc. are some of the major players discussed in the report. Further, key strategies adopted by potential market leaders to facilitate effective planning have been discussed under the scope of the report.
Unconventional (oil & gas) reservoirs are accumulations where oil & gas phases are tightly bound to the rock fabric by strong capillary forces and require specialized measures for evaluation and extraction. As per estimation of International Energy Agency, despite substantial global efforts to transition away from fossil fuel-based energy sources to reduce environmental impact and address climate change, unconventional oil still contributes up to 25-30% of the global energy mix in 2040. This is contributed by renewable deployment pace limitations particularly in developing economies, and the need for energy-dense fuels in heavy/long-distance transport, as well as chemical feedstock (e.g., lubricants, plastics, fertilizers) and high-grade heat in industrial applications. Rise in demand in the context of both energy security and foreseeable depletion of aging conventional fossil resources has driven the development of more complex, difficultly exploitable reserves in particular, unconventional resources. Unconventional reserves have been estimated to account for up to 80% of total hydrocarbon resources, with conservatively ∼500-1,000 billion barrels (bbl) of recoverable unconventional oil.
In terms of oil demand in the Asia-Pacific region, mainly China and India are expected to dominate the market by 2040 due to rise in population and growth in economy and industrialization. Oil consumption is expected to decrease in Europe over the next decades due to rising sustainable energy policies. The future of unconventional oil development in the energy sector is a complex task due to the multitude of influencing factors, difference in viewpoints, and federal laws. These complexities make it challenging to provide a straightforward prediction for the unconventional oil industry's trajectory.
For the purpose of analysis, the unconventional oil market scope covers segmentation based on type, extraction method, application, and region. The report provides information on various types including heavy oil, extra heavy oil, bitumen, and oil shale. Furthermore, the major extraction methods covered in the study include traditional drilling techniques and advanced extraction techniques. Moreover, it outlines the details of the applications such as oil & gas and lubricant. In addition, it analyzes the current market trends across different regions such as North America, Europe, Asia-Pacific, and LAMEA.
The report outlines growing drivers, restraints, and opportunities to better understand market dynamics. This report further highlights key areas of investment. In addition, it includes analysis of Porter’s five forces to understand the competitive scenario and role of each stakeholder.
The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to increase their market share and sustain intense competition in the application. Canadian Natural, Chevron, Continental Resources Inc., ConocoPhillips, ExxonMobil Corporation, Imperial Oil Limited, PDVSA- Petroleos de Venezuela, S.A., Petróleo Brasileiro S.A. - Petrobras, Sasol Limited, and Suncor Energy Inc. are some of the major players discussed in the report. Further, key strategies adopted by potential market leaders to facilitate effective planning have been discussed under the scope of the report.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the unconventional oil market analysis from 2022 to 2032 to identify the prevailing unconventional oil market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the unconventional oil market size segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global unconventional oil market trends, key players, market segments, application areas, and market growth strategies.
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- Expanded list for Company Profiles
- Historic market data
- Market share analysis of players at global/region/country level
- Volume Market Size and Forecast
Key Market Segments
By Type
- Extra Heavy Oil
- Bitumen
- Oil Shale
- Heavy Oil
By Extraction Method
- Traditional Drilling Techniques
- Advanced Extraction Techniques
By Application
- Oil and gas
- Lubricants
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
- Key Market Players
- Imperial Oil Limited
- Continental Resources Inc.
- ConocoPhillips
- PDVSA- Petroleos de Venezuela, S.A.
- ExxonMobil Corporation
- Petróleo Brasileiro S.A. - Petrobras
- Canadian Natural
- Sasol Limited
- Suncor Energy Inc.
- Chevron
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: UNCONVENTIONAL OIL MARKET, BY TYPE
CHAPTER 5: UNCONVENTIONAL OIL MARKET, BY EXTRACTION METHOD
CHAPTER 6: UNCONVENTIONAL OIL MARKET, BY APPLICATION
CHAPTER 7: UNCONVENTIONAL OIL MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the unconventional oil market was valued at $666 billion in 2022, and is estimated to reach $940.3 billion by 2032, growing at a CAGR of 3.6% from 2023 to 2032.Unconventional oils are typically identified by their characteristics. The heavier the oil is, for example, oil sand (bitumen) and oil shale (kerogen), the more it is carbon laden, higher in sulphur, and filled with toxic impurities. Unconventional oils are typically much heavier than even the lowest-quality conventional oil.
Unconventional oil resources are typically more expensive to produce than conventional oil, often in the $40-$80/barrel range for production. However, the production of unconventional oil is increased due to rise in demand for fossil fuels and falling reserves of conventional oil. The unconventional oil 'revolution” has drastically changed the world energy landscape. Advancement in technology have made initially hard-to-access oil reserves more economically recoverable. These advancements have triggered changes in global oil supply, demand and transport. It has also affected global energy access and national economies. For instance, the U.S. transition from a historical oil importer to a net exporter of oil due to the exploitation of tight oil.
Growth in unconventional hydrocarbon supply over the last 20 years reflects advances in relevant technologies and declining costs. In 2020, unconventional accounted for around 34% of global hydrocarbon production, and they represent around 50% of current reserves under development. However, they have also attracted criticism from NGOs owing to perceived environmental issues associated with their production. The International Energy Agency projects that North America is the largest contributor of unconventional oils such as extra-heavy oil, bitumen, and kerogen with estimates of 50% more unconventional oil than total conventional reserves in the Middle East, Eastern Europe and Eurasia, followed by Latin America.
On Sept 2023, the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced $17.2 million to evaluate the potential for unconventional oil production through a combined process that uses captured carbon dioxide (CO2) emissions to recover residual oil called CO2 enhanced oil recovery. In the upcoming years, the uncoventional oil market trends is anticipated to rise due to developments in technology, government initiatives, and growing unvonventional oil industry and consumer awareness of the value of sustainable practices. Thus, above mentioned all factors bolster the expansion of the unconventional oil market.
The unconventional oil market scope is segmented on the basis of type, extraction method, application, and region. On the basis of type, it is classified into heavy oil, extra heavy oil, bitumen, and oil shale. As per extraction method, the market is bifurcated into traditional drilling techniques and advanced extraction techniques. Depending on application, it is divided into oil and gas and lubricant. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Based on region, North America held the highest market share in terms of revenue in 2022, accounting for more than three-fourths of the global market revenue, and is likely to dominate the unconventional oil market forecast period. The Asia-Pacific region presents significant potential in unconventional oil market growth. Emerging markets, such as India, China, and Southeast Asian countries, have witnessed rapid industrial growth which will lead to increased demand for unconventional oil. The abovementioned factors will provide uncoventional oil market opportunities for the development during the forecast period.
Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe and North America. The major companies profiled in this report include Canadian Natural, Chevron, Continental Resources Inc., ConocoPhillips, ExxonMobil Corporation, Imperial Oil Limited, PDVSA- Petroleos de Venezuela, S.A., Petróleo Brasileiro S.A. - Petrobras, Sasol Limited, and Suncor Energy Inc.
Impact analysis:
The global energy crisis triggered by the war in Ukraine has resulted in an unprecedented reshuffling of global trade flows. The ongoing war has created political and economic instability, resulting in a decline in consumer purchasing power within the region. Additionally, the pandemic has severely disrupted supply chains, leading to challenges in production and distribution for manufacturers. The economic crises breed uncertainty and market instability, fostering heightened price volatility and fluctuations in demand. Economic recessions also prompt market consolidation, while governmental interventions aimed at stimulating growth can lead to alterations in environmental policies and regulations, directly impacting the market. Overall, the effects of an economic crisis on the unconventional oil market are complex and multifaceted. While funding constraints and reduced demand can pose challenges, stimulus measures, innovation opportunities, and a heightened focus on sustainability can create a more favorable environment for the growth of drilling technologies.Key findings of the study
On the basis of type, the oil shale segment accounts for more than one-third of the uncoventional oil market share, in terms of revenue, in 2022.On the basis of extraction method, the advanced extraction techniques segments accounts nearly three-fourths of the unconventional oil market size, in terms of revenue, in 2022.
On the basis of application, the oil and gas segment accounts for nearly four- fifths of the market share, in terms of revenue, in 2022.
Region-wise, North America accounts for more than three-fourths of the market share, in terms of revenue, in 2022.
Companies Mentioned
- Imperial Oil Limited
- Continental Resources Inc.
- ConocoPhillips
- PDVSA- Petroleos de Venezuela, S.A.
- ExxonMobil Corporation
- Petróleo Brasileiro S.A. - Petrobras
- Canadian Natural
- Sasol Limited
- Suncor Energy Inc.
- Chevron
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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