U.S. Oil & Gas Market Size to Worth USD 2.24 Trillion by 2034

According to Towards Chemical and Materials, the U.S. oil & gas market size is calculated at USD 1.61 trillion in 2025 and is expected to be worth around USD 2.24 trillion by 2034, growing at a compound annual growth rate (CAGR) of 3.75% over the forecast period 2025 to 2034.

Ottawa, Oct. 03, 2025 (GLOBE NEWSWIRE) -- The global U.S. oil & gas market size was estimated at USD 1.55 trillion in 2024 and is expected to hit around USD 2.24 trillion by 2034, growing at a compound annual growth rate (CAGR) of 3.75 % over the forecast period from 2025 to 2034. A study published by Towards Chemical and Materials a sister firm of Precedence Research.

The Rising domestic energy demand particularly from transportation and industrial sectors is driving increased production and investment the market.

According to Towards Chemical and Materials the new market research report, the U.S. oil & gas market volume was reached 46.50 billion barrels of oils equi. in 2024 and is expected to be worth around 54.12 billion barrels of oils equi. by 2034, growing at a compound annual growth rate (CAGR) of 1.53% over the forecast period 2025 to 2034.

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U.S. Oil & Gas Market Overview:

The U.S. oil & gas market encompasses the full hydrocarbon value chain from exploration and production through refining, transportation, storage, and distribution and is driven by a combination of its vast shale resources, advanced extraction technologies, and growing global export orientation. Domestically, strong energy demand from transportation, industrial, and power sectors underpins consistent consumption, while investments in infrastructure like pipelines, LNG terminals, and storage capacity facilitate both internal supply flows and international trade. The prominence of unconventional techniques such as horizontal drilling and hydraulic fracturing has unlocked extensive reserves across key basins, while onshore deployment remains the backbone of operations given its lower cost and infrastructure advantages. At the same time, the industry is embracing digital solutions, such as AI, predictive maintenance, and operational automation, to optimize production, reduce downtime, and manage environmental constraints. The U.S. also positions itself as a major exporter of natural gas and oil products, leveraging favourable policies, a mature regulatory framework, and robust logistics networks to compete in global market.

U.S. Oil & Gas Market Report Highlights

South held a 51% share in the U.S. oil & gas market in 2024 due to the strong presence of large reserves of oil & gas.
By sector, the upstream segment held a 50% share in the market in 2024 due to the increasing investment in the energy sector.
By resource type, the natural gas segment held a 54% share in the market in 2024 due to the well-established pipeline network.
By extraction technique, the unconventional segment held a 65% share in the market in 2024 due to the increasing export of LNG.
By end-use, the transportation segment held a 42% share in the U.S. oil & gas market in 2024 due to the growing modes of transportation.
By deployment, the Permian Basin segment held a 44% share in the market in 2024 due to the well-established transportation infrastructure.
By technology, the hydraulic fracturing segment held a 41% share in the market in 2024 due to the shorter production cycle.
By distribution, the integrated oil companies segment held a 47% share in the market in 2024 due to the growing investment in research & development.

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U.S. Oil & Gas Market Report Scope

Report Attribute	Details
Market size value in 2026	USD 1.67 trillion
Revenue forecast in 2034	USD 2.24 trillion
Growth rate	CAGR of 3.75% from 2025 to 2034
Base year for estimation	2024
Historical data	2021 - 2024
Forecast period	2025 - 2034
Segments covered	By Sector, By Resource Type, By Extraction Technique, By End Use, By Deployment Type, By Technology, By Distribution Channel, By Region
Key companies profiled	ExxonMobil Corporation, Chevron Corporation, ConocoPhillips, Occidental Petroleum (Oxy), EOG Resources, Inc., Pioneer Natural Resources, Devon Energy Corporation, Marathon Petroleum Corporation, Phillips 66, Valero Energy Corporation, Kinder Morgan, Inc., Williams Companies, Inc., Hess Corporation, Chesapeake Energy Corporation, Antero Resources Corporation, Diamondback Energy, Inc., Halliburton Company, Schlumberger Ltd. (U.S. Operations), Baker Hughes Company, Tellurian Inc. (LNG Developer/Exporter)

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Here Are Some Of The Top Products In The U.S. Oil & Gas Market

Gasoline (Motor Gasoline)- Primary fuel for cars and light-duty vehicles; largest petroleum product consumed.
Diesel Fuel (Distillate Fuel)- Used in trucks, buses, trains, industrial equipment, and heating.
Natural Gas- Used for electricity generation, heating, and industrial processes.
Jet Fuel (Kerosene-Type)- Fuel for commercial and military aircraft.
Liquefied Petroleum Gas (LPG)- Includes propane and butane; used in heating, cooking, and as a petrochemical feedstock.
Residual Fuel Oil- Heavy oil used in ships, power plants, and industry.
Petrochemical Feedstocks- Used to make plastics, fertilizers, solvents, etc. (e.g., ethane, naphtha).
Asphalt and Road Oil- Used in paving roads and roofing materials.
Lubricants- Oils used to reduce friction in engines and machinery.
Coke (Petroleum Coke)- Solid byproduct used in industrial applications like steel and cement production.

What Are The Major Trends In The U.S. Oil & Gas Market?

Rise in LNG exports is reshaping the supply side with growing international demand.
Increasing adoption of AI, predictive maintenance, digitalization is boosting operational efficiency across assets.
Expansion of offshore exploration is gaining more attention as companies push into deeper and more challenging reserves.
Growing demand for petrochemical feedstocks is driving upstream and midstream integration and infrastructure development.
Independent producers are rapidly embracing new technologies and agile practices, intensifying competition in distribution.

How Does AI Influence The Growth Of The U.S. Oil & Gas Market In 2025?

AI is reshaping the U.S. oil & gas market in 2025 by transforming how assets are monitored, resources are extracted, and logistics are coordinated across the value chain. Intelligent algorithms are now deeply embedded into drilling operations, allowing operators o analyse subsurface conditions in real time and precisely adjust extraction strategies without manual intervention. Refining facilities are increasingly governed by automated control systems capable of learning from historical performance patterns, reducing inefficiencies and stabilizing output even under fluctuating operations conditions. In the midstream segment, AI driven surveillance tools continuously scan for leak indicators, pressure irregularities, and corrosion risks, allowing early intervention long before threats escalate into disruptions. Supply chain workflows are restructured with data driven scheduling tools that streamline fleet management, inventory flows, and delivery routing while accounting for shifting market dynamics. Even workforce deployment benefits from AI-enabled planning systems that align skill sets, shift rotations, and safety protocols with live operational needs. Together, these advancements position AI not as a supportive tool but as an active force reshaping decisions making, unlocking productivity gains, and reinforcing the market’s resilience in an increasingly competitive landscape.

U.S. Oil & Gas Market Growth Factors

Is Electrification Powering The Permian Basin?

The electrification of oil and gas operations is accelerating in the Permian Basin. Companies are replacing diesel generators with natural gas powered electricity to meet rising energy demands. This shift not only reduces emissions but also enhances operational efficiency. Vistra’s investment in new natural gas power plants in the region underscores this trend. Such initiatives are pivotal in supporting the growing energy needs of oil and gas operations.

Are Major Oil Companies Expanding Their U.S. Operations?

Leading oil companies are significantly increasing their investments in U.S. oil and gas projects. BP’s approval of the 45 billion Tiber Guadalupe offshore drilling project in the Gulf of Mexico exemplifies this trend. This project aims to produce substantial oil volumes, reinforcing BP’s commitment to boosting its U.S. output. Such investments are expected to bolster domestic production and contribute to energy security.

Market Opportunity

Can Electrification Drive Growth In The Permian Basin?

The electrification of oil and gas operations in the Permian Basin is creating significant growth opportunities. Companies are investing in natural gas power plants to meet the increasing electricity demands of oil and gas operations. For instance, Vistra plans to build two natural gas power plants in the Permian Basin, with a combined capacity of 860 megawatts. These plants are expected to be operational by 2028, supporting the growing energy needs of the oil and gas industry in the region.

Limitations In The U.S. Oil & Gas Market

Stringent environmental rules and growing public resistance can delay projects and increase compliance costs, while favouring renewable energy many influence investments.
Limited transportation and storage facilities in developing areas can restrict efficient resource development and distribution.

U.S. Oil & Gas Market Segmentation

Sector Insights

Which Sector Holds The Largest Share In U.S. Oil & Gas Market?

The upstream segment dominated the market in 2024. The dominance is attributed to the significant exploration and production activities, particularly in shale formations such as the Permian Basin and Eagle Ford. Technological advancements like horizontal drilling and hydraulic fracturing have enhanced extraction capabilities, leading to increased production. Additionally, substantial investments in infrastructure and a favourable regulatory environmental have bolstered the upstream sector’s growth.

The midstream segment is projected to experience the fastest growth during the forecast period. This growth is driven by the increasing demand for transportation, storage and distribution of oil and gas. The expansion of pipeline networks, development of liquefied natural gas (LNG) terminals, and advancements in digital technologies for pipeline monitoring and maintenance are contributing to the sector’s rapid expansion. These developments are essential to accommodate the rising production level and ensure efficient delivery to end users.

Resource Type Insights

Which Resource Type Dominated The U.S. Oil & Gas Market In 2024?

Natural gas segment emerged as the dominant resource type in the market in 2024. The presence of vast reserves, especially in shale formations, has been a key factor in this dominance. Technological advancements, such as horizontal drilling and hydraulic fracturing, have facilitated the efficient extraction of natural gas. Additionally, the growing demand for cleaner energy sources and the expansion of natural gas infrastructure have further solidified natural gas’s leading position in the market.

Liquefied Natural Gas (LNG) segment is anticipated to be the fastest growing segment in the market during the forecast period. The expansion of LNG export infrastructure, including liquefaction facilities and export terminals, has facilitated increased production and distribution. The shift towards cleaner energy sources and the global demand for LNG have further accelerated its growth. Investments in LNG infrastructure and technological advancements in liquefaction processes are expected to continue driving the segment’s rapid growth.

Extraction Technique Insights

Why Did Unconventional Extraction Techniques segment Dominate The U.S. Oil & Gas Market?

Unconventional extraction techniques, including hydraulic fracturing and horizontal drilling segments dominated the market in 2024. The adoption of these techniques has enabled the extraction of oil and gas from previously inaccessible shale formations. The presence of tight oil and gas resources has driven the demand for unconventional extraction methods, furthermore, supportive government policies and advancements in drilling technologies have contributed to the widespread use of these techniques, reinforcing their dominance in the market.

Offshore extraction segment is projected to be the fastest growing segment in the market during the forecast period. Technological advancements in Deepwater drilling and reservoir management have enhanced the feasibility of offshore extraction. Supportive government policies and investments in offshore infrastructure are expected to further accelerate the growth of this segment.

End Use insights

Did The Transportation Sector Dominate The U.S. Oil & Gas Market?

The transportation segment held the largest share in the market in 2024. The demand for oil-based fuels, such as gasoline and diesel, is primarily driven by various modes of transportation, including commercial trucks, ships, personal vehicles, and airplanes. The increasing production of petroleum products to meet the needs of these transportation mods has bolstered sector’s dominance. Additionally, the development of transportation infrastructure, such as ports, roads, and railways, has facilitated the distributing of oil and gas, further supporting sector’s leading role in the market.

The petrochemical feedstock segment is anticipated to experience the fastest growth in the U.S. oil & gas market during the forecast period. The growing extraction o shale gas increased the production of petrochemical feedstocks like ethylene. The expansion of petrochemical facilities, particularly in the U.S. Gulf Coast, has blistered the production of petrochemical feedstocks. The rising demand for petrochemical products in various industries, including automotive and packaging, is expected to continue driving the segment’s rapid growth.

Deployment Insights

Why Did The Onshore Segment Dominate The U.S. Oil & Gas Market?

The onshore segment dominated the U.S. oil gas market in 2024. Onshore operations are generally more cost-effective due to less expensive infrastructure and easier access to maintenance, exploration, and drilling activities. The presence of significant shale formations in regions like Eagle Ford, Permian, ad Bakken has driven the demand for onshore deployment. Investments in transportation, pipelines, and processing facilities have further supported the growth of onshore operations, reinforcing their dominance in the market.

The Permian Basin segment held the largest share in the market, driven by abundant oil and natural gas reserves and enhanced extraction through hydraulic fracturing and horizontal drilling. It’s well established pipelines, processing facilities, and focus on energy independence further support market growth. The Marcellus shale is the fastest growing sub segment, fueled by rich natural gas reserves and advanced drilling technologies. Rising energy demand and improved rig productivity continue to drive its expansion.

The Marcellus Shale segment is projected to be the fastest growing sub-segment in the market during the forecast period. The abundance of natural gas reserves in the Marcellus Shale has driven increased exploration and production activities. Technological advancements in drilling techniques, such as hydraulic fracturing and horizontal drilling, and enhanced the productivity of the Marcellus Shale. The growing demand for natural gas and improvements in drilling rig productivity are expected to continue fuelling the rapid growth of the sub-segment.

Technology Insights

Why Did Hydraulic Fracturing Segment Dominate The U.S. Oil & Gas Market?

Hydraulic fracturing segment held the largest share in the market in 2024. The technique has been instrumental, in extracting oil and gas from shale formations, enabling access to previously untapped resources. The adoption of hydraulic fracturing has been driven been the need to enhance production efficiency and reduce costs. The supportive regulatory environment and advancements in drilling technologies have further facilitated the widespread use of hydraulic fracturing, solidifying its dominance in the market.

AI and predictive maintenance segment are anticipated to be the fastest growing segment in the market during the forecast period. The increasing demand for identifying equipment failures and scheduling maintenance has driven the adoption of AI and predictive maintenance technologies. These technologies enhance operational efficiency and reduce downtime, leading to cost savings. The focus on optimizing energy consumption and reducing carbon footprints is expected to further accelerate the growth of this segment.

Distribution Insights

Why Did Integrated Oil Companies Segment Dominate The U.S. Oil & Gas Market?

Integrated oil companies segment dominated the market in 2024. These operate across various stages of the oil and gas value chain, including exploration, production, refining, and distribution, allowing them to control multiple aspects of the supply chain. The ability manage various stages of production and distribution has provided integrated oil companies with a competitive advantage. Their substantial investments in research and development, coupled with a comprehensive operational framework, have reinforced their leading position in the market.

Independent producers segment are projected to be the fastest growing segment in the market during the forecast period. The increasing demand for liquefied natural gas and the expansion of LNG export facilities have driven the growth of independent producers. The focus on production and exploration of oil gas resources has further bolstered their activities. The rapid adoption of new technologies, such as AI, enhanced oil recovery techniques, and digitalization, and enhanced the efficiency and competitiveness of independent producers, supporting their rapid.

Which Region Dominate The U.S. Oil & Gas Market?

The South region dominated the U.S. oil & gas market in 2024, due to the abundant oil and natural gas reserves in states like Texas and New Mexico. The region’s well established infrastructure, including refineries, pipelines, and storage facilities, enhances production efficiency and resource distribution. Extensive export terminals for liquefied natural gas provide access to both domestic and international markets, supporting robust export activity. Additionally, technological advancements such as horizontal drilling and hydraulic fracturing, along with offshore exploration in the Gulf of Mexico, are driving overall market growth. The south’s strategic combination of resources, infrastructure, and technology positions it as a central hub in the U.S. oil and gas industry.

Why Is The Northeast U.S. Experiencing Rapid U.S. Oil & Gas Market Growth?

The Northeast region of the U.S. is witnessing the most rapid expansion in the market throughput the projected timeframe. The significant deposits of shale gas in both Marcellus and Utica Shale contribution to the growth of the market. The widespread use of advanced extraction methods such as horizontal drilling and hydraulic fracturing boosts oil and gas production. The robust network of pipelines that transport natural gas aids in the market’s development. The presence of large energy consuming regions and well established industrial centres drives the demand for energy, enhancing the overall growth of the market.

More Insights in Towards Chemical and Materials:

Oil & Gas Market : The global Oil & Gas-market size was valued at USD 6.10 Trillion in 2024, grew to USD 6.33 Trillion in 2025, and is expected to hit around USD 8.79 Trillion by 2034, growing at a compound annual growth rate (CAGR) of 3.72% over the forecast period from 2025 to 2034.
U.S. Oil & Gas Infrastructure Market : The U.S. oil & gas infrastructure market size was reached at USD 78.85 Billion in 2024 and is expected to be worth around USD 147.32 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.45% over the forecast period 2025 to 2034.
Oil & Gas Infrastructure Market : The global oil & gas infrastructure market size was reached at USD 752.19 billion in 2024 and is expected to be worth around USD 1,377.87 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.24% over the forecast period 2025 to 2034.
Gas Separation Membrane Market : The global gas separation membrane market was valued at approximately USD 1.85 billion in 2024 and is projected to grow at a CAGR of 6.95% from 2025 to 2034, reaching a value of USD 3.62 billion by 2034.
Renewable Natural Gas Market : The global renewable natural gas market size is calculated at USD 15.5 billion in 2025 and is forecasted to reach around USD 31.37 billion by 2034, accelerating at a CAGR of 8.15% from 2025 to 2034.
Natural Gas Market : The global natural gas market size accounted for USD 4.19 trillion in 2024 and is predicted to increase from USD 4.41 trillion in 2025 to approximately USD 6.96 trillion by 2034, expanding at a CAGR of 5.20% from 2025 to 2034.
Industrial Gas Pipeline Infrastructure Market : The global industrial gas pipeline infrastructure market volume was reached at USD 44.00 million tonnes in 2024 and is expected to be worth around USD 67.55 million tonnes by 2034, growing at a compound annual growth rate (CAGR) of 4.38% over the forecast period 2025 to 2034.
Europe Oil & Gas Infrastructure Market : The Europe oil & gas infrastructure market size was reached at USD 85.11 billion in 2024 and is expected to be worth around USD 140.09 billion by 2034, growing at a compound annual growth rate (CAGR) of 5.11% over the forecast period 2025 to 2034.
Asia Pacific Oil & Gas Infrastructure Market : The Asia Pacific oil & gas infrastructure market size accounted for USD 207.77 billion in 2025 and is forecasted to hit around USD 365.90 billion by 2034, representing a CAGR of 6.49% from 2025 to 2034.
Asia Pacific Oil & Gas Market : The Asia Pacific oil & gas market volume was reached at USD 1.85 trillion in 2024 and is expected to be worth around USD 2.79 trillion by 2034, growing at a compound annual growth rate (CAGR) of 4.21% over the forecast period 2025 to 2034.
U.S. Gas Pipeline Infrastructure Market : The U.S. gas pipeline infrastructure market size is calculated at USD 1,058.73 billion in 2024, grew to USD 1,149.26 billion in 2025, and is projected to reach around USD 2,431.55 billion by 2034. The market is expanding at a CAGR of 8.67% between 2025 and 2034.
Europe Oil & Gas Infrastructure Market : The Europe oil & gas infrastructure market size was reached at USD 85.11 billion in 2024 and is expected to be worth around USD 140.09 billion by 2034, growing at a compound annual growth rate (CAGR) of 5.11% over the forecast period 2025 to 2034.
Asia Pacific Oil & Gas Infrastructure Market : The Asia Pacific oil & gas infrastructure market size accounted for USD 207.77 billion in 2025 and is forecasted to hit around USD 365.90 billion by 2034, representing a CAGR of 6.49% from 2025 to 2034.
Asia Pacific Oil & Gas Market : The global Asia Pacific oil & gas market volume was reached at USD 1.85 trillion in 2024 and is expected to be worth around USD 2.79 trillion by 2034, growing at a compound annual growth rate (CAGR) of 4.21% over the forecast period 2025 to 2034.
Asia Pacific Gas Pipeline Infrastructure Market : The Asia Pacific gas pipeline infrastructure market size was valued at USD 813.48 billion in 2024 and is expected to be worth around USD 1,592.78 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.95% over the forecast period from 2025 to 2034.
U.S. Oil & Gas Infrastructure Market : The U.S. oil & gas infrastructure market size was reached at USD 78.85 Billion in 2024 and is expected to be worth around USD 147.32 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.45% over the forecast period 2025 to 2034.
Oil & Gas Infrastructure Market : The global oil & gas infrastructure market size was reached at USD 752.19 billion in 2024 and is expected to be worth around USD 1,377.87 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.24% over the forecast period 2025 to 2034.

U.S. Oil & Gas Market Top Key Companies:

ExxonMobil Corporation
Chevron Corporation
ConocoPhillips
Occidental Petroleum (Oxy)
EOG Resources, Inc.
Pioneer Natural Resources
Devon Energy Corporation
Marathon Petroleum Corporation
Phillips 66
Valero Energy Corporation
Kinder Morgan, Inc.
Williams Companies, Inc.
Hess Corporation
Chesapeake Energy Corporation
Antero Resources Corporation
Diamondback Energy, Inc.
Halliburton Company
Schlumberger Ltd. (U.S. Operations)
Baker Hughes Company
Tellurian Inc. (LNG Developer/Exporter)

U.S. Oil & Gas Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2034. For this study, Towards Chemical and Materials has segmented the global U.S. Oil & Gas Market

By Sector

Upstream (Exploration & Production)
Midstream (Pipelines, Storage, LNG Terminals)
Downstream (Refining, Marketing & Distribution)

By Resource Type

Crude Oil (WTI, LLS, Bakken, etc.)
Natural Gas (Shale Gas, Tight Gas)
Liquefied Natural Gas (LNG)
Refined Petroleum Products

By Extraction Technique

Unconventional (Shale, Tight Oil, Hydraulic Fracturing)
Conventional Onshore
Offshore (Gulf of Mexico)

By End Use

Transportation (Automotive, Aviation)
Power Generation
Industrial Use
Residential & Commercial
Petrochemical Feedstock

By Deployment Type

Onshore (Permian, Bakken, Marcellus, Eagle Ford, etc.)
Offshore (Gulf of Mexico, California Coast)

By Technology

Hydraulic Fracturing & Horizontal Drilling
Seismic Imaging
Carbon Capture & Storage (CCS)
AI & Predictive Maintenance
Remote Monitoring & SCADA
Digital Twin & IoT Applications

By Distribution Channel

Integrated Oil Companies
Independent Producers
Oilfield Services Companies
Pipeline Operators
LNG Exporters

By Region

Northeast
Midwest
South
West
Gulf Coast

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