Asia-Pacific Oil and Gas Upstream Market, By Country, Competition, Forecast and Opportunities 2020-2030F

The Asia-Pacific Oil and Gas Upstream Market was valued at USD 1.53 trillion in 2024, and is expected to reach USD 1.97 Trillion by 2030, rising at a CAGR of 4.18%. The region remains a cornerstone of global energy dynamics, driven by growing energy consumption, economic expansion, and active exploration and production initiatives. Countries like Indonesia and Malaysia contribute mature oil and gas fields, while others such as India, China, and Australia are focusing on emerging exploration areas, including deepwater zones in Southeast Asia.

Governments are prioritizing energy independence through domestic production enhancements, attracting substantial investments in upstream technologies like enhanced oil recovery and deepwater drilling. India’s Hydrocarbon Exploration and Licensing Policy (HELP) and China’s push for shale and tight oil development reflect this strategic focus. Offshore activities are accelerating, especially in deepwater basins across Australia, Vietnam, and Malaysia, supported by improved subsea technologies and LNG infrastructure. These developments highlight the region’s critical role in meeting future energy demands and securing long-term supply.

Key Market Drivers

Rising Energy Demand Driven by Urbanization and Industrial Growth

Urbanization and industrialization across Asia-Pacific are fueling a sharp increase in energy demand, particularly in countries like China, India, and those in Southeast Asia. Population growth, infrastructure expansion, and manufacturing development are primary contributors to this surge. According to the International Energy Agency (IEA), Asia is expected to account for over 40% of the global increase in energy demand by 2040.

India alone is projected to double its energy use by 2045, largely driven by transportation and industrial activities. This trend has pushed governments to invest heavily in upstream oil and gas development to reduce import reliance and meet domestic needs. For instance, India aims to cut oil imports by 10% by 2030, while Indonesia and Vietnam are ramping up exploration to support urban electricity demand. Oil and gas continue to be vital for power generation and industrial heating, making upstream activity central to regional energy strategies.

Key Market Challenges

Regulatory Complexity and Policy Inconsistencies

The Asia-Pacific upstream sector faces significant challenges from regulatory fragmentation and inconsistent policy environments across countries. Frequent changes in fiscal regimes, licensing terms, and local compliance rules hinder investor confidence and long-term planning. In Indonesia, alternating between cost recovery and gross split PSCs has created economic uncertainty for operators. While India’s HELP policy introduced reforms, delays in environmental approvals and block allocations persist. Vietnam and the Philippines also experience regulatory hold-ups that deter interest in offshore development.

These issues are especially concerning in deepwater and frontier areas where project costs and risks are already high. Joint ventures are further complicated by varying regulatory requirements at national and local levels. Additionally, licensing rounds often underperform due to limited seismic data, unattractive fiscal terms, and unclear legal structures around revenue sharing. To unlock upstream potential, the region must streamline approval processes, offer transparent legal frameworks, and improve investment attractiveness through consistent policy reforms.

Key Market Trends

Shift Toward Natural Gas as a Transition Fuel

In alignment with global decarbonization efforts, Asia-Pacific countries are increasingly adopting natural gas as a transitional energy source. This shift is influencing upstream capital allocation, with companies prioritizing gas exploration and production over oil. Natural gas is seen as a cleaner alternative that supports industrial and power generation needs while reducing emissions. Nations such as China, India, and Indonesia are investing in gas infrastructure including LNG terminals, pipelines, and city gas networks.

China is boosting offshore gas output and tapping into unconventional sources, while India is advancing deepwater gas production through public-private ventures. Key discoveries like Malaysia’s Lang Lebah and Indonesia’s Tuna Block are gaining traction due to strong market demand and favorable policies. Governments are also enabling gas development by introducing market-based pricing and easing licensing terms. This growing emphasis on natural gas is reshaping upstream strategies and establishing gas as a pivotal element in the region’s energy transition roadmap.

Key Market Players

• ExxonMobil
• Royal Dutch Shell
• Chevron Corporation
• BP
• ConocoPhillips
• TotalEnergies
• Saudi Aramco
• PetroChina
• China National Offshore Oil Corporation
• Gazprom

Report Scope:

In this report, the Asia-Pacific Oil and Gas Upstream Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Asia-Pacific Oil and Gas Upstream Market, By Resource Type:

• Conventional
• Unconventional

Asia-Pacific Oil and Gas Upstream Market, By Drilling Type:

• Onshore
• Offshore

Asia-Pacific Oil and Gas Upstream Market, By Application:

• Industrial
• Power Generation
• Residential
• Commercial
• Transportation

Asia-Pacific Oil and Gas Upstream Market, By Country:

• China
• Japan
• India
• South Korea
• Australia
• Singapore
• Thailand
• Malaysia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Asia-Pacific Oil and Gas Upstream Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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