Research Scope

Analytical instrumentation in the oil & gas industry consists of 3 main operational components – upstream, midstream, and downstream sectors.

The upstream sector involves the exploration for and extraction of petroleum crude oil and natural gas. It includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the petroleum crude oil and/or raw natural gas to the surface.

The midstream involves storing, marketing and transporting petroleum crude oil, natural gas, and natural gas liquids (mainly ethane, propane and butane).

The downstream sector involves the refining of petroleum crude oil and the processing of raw natural gas. It includes the selling and distribution of processed natural gas.

Gas analyzers, liquid analyzers, infrared and UV-Vis spectrometer, gas chromatographs, and mass spectrometers are the main analytical technological segments included in this research.

Sub-product segments included in the research are:

• Flame Ionization Detector
• Thermal Conductivity Detector
• Chemiluminescence Detector
• Conductivity Analyzer
• Total Organic Carbon (TOC)
• pH/oxidation-Reduction potential (ORP)
• Turbidity Meter
• Colorimeter
• Dissolved Oxygen
• Chlorine Analyzer
• Gas Chromatographs
• Infrared Spectrometer
• Ultraviolet-Visible Spectrometer
• Mass Spectrometers
• Tunable Diode Laser Spectroscopy Analyzer
• Zirconia Analyzer
• Non-dispersive infrared (NDIR) Analyzer
• Paramagnetic Analyzer
• Electrochemical Analyzer

Key Findings

• Oil demand will peak around the mid-2020s, which will result in extreme upstream activities.
• The global demand for gas is expected to peak in 2026 and surpass the demand for oil, making it the world's primary energy source. This would result in high demand for analytical instrumentation for upstream and midstream activities.
• New sources of gases including biogas, hydrogen, and synthetic methane are being introduced to domestic and commercial energy systems to decarbonize gas consumption. This will further increase the demand for analyzers to measure these gases and their relative carbon emissions.
• A lower carbon shift is realized in the midstream and downstream sectors, which will result in a high demand for emission analyzers.
• Oil and natural gas met 54% of the world’s energy demand in 2017. This ratio, however, will reduce to 46% in 2050, leading to a lower demand for analyzers.  China has registered the fastest growth in shale gas production, with the highest CAGR of 38.2% from 2015 to 2022. This will result in a high demand for gas chromatographs.
• The price of oil and gas determines the growth of the market. Thanks to the financial crisis caused by COVID-19, the price of a barrel is now close to $20, but usually ranges between $50 and $70. This will result in a much lower market for analytical equipment.
• The market for oil in particular has plunged as a result of the decrease in road transport and air travel. With the demand for green energy, the projection for oil demand in 2030 is already weak. With the pandemic, the demand could be much slower due to a combination of factors such as weak economic growth, changes in consumer behavior, and government policies. Oil and gas accounted for 54% of the world's energy demand in 2017. The demand for oil will peak around the mid-2020s, with a shift in the fuel source to gas thereafter.
• Emissions monitoring and other applications ensuring safety will strongly drive the demand for analytical instruments.  The shift from laboratory to process analyzers will result in the deployment of analyzers in the process set-up to meet ASTM regulations.  Stringent regulations that restrict the fracking and drilling process associated with oil and gas production will refrain the growth of the analytical instrumentation market.