Crude Oil Market Size, Share, Growth & Industry Analysis, By Type (Light Crude Oil, Medium Crude Oil, Heavy Crude Oil, Extra-Heavy Crude & Bitumen), By Extraction Method (Conventional Crude Oil, Unconventional Crude Oil), By Application, By End-User Industry and Regional Analysis, 2024-2031

Market Definition

The crude oil industry involves the exploration, extraction, refining, distribution, and trading of crude oil, a key global commodity. It is influenced by supply-demand dynamics, geopolitical factors, and regulatory policies.

Crude oil is refined into various by-products, including gasoline, diesel, jet fuel, lubricants, asphalt, petrochemicals, and plastics, serving essential industries such as transportation, manufacturing, and energy.

Crude Oil Market Overview

The global crude oil market size was valued at USD 3,278.00 billion in 2023 and is projected to grow from USD 3,364.55 billion in 2024 to USD 4,111.30 billion by 2031, exhibiting a CAGR of 2.90% during the forecast period.

This growth is underpinned by rising energy demand, expanding refining capacities, and strategic investments in exploration and production, while geopolitical dynamics and evolving regulatory frameworks further drive market expansion.

Major companies operating in the crude oil industry are Saudi Arabian Oil Co., CNPC, Chevron Corporation, bp p.l.c., Exxon Mobil Corporation, Kuwait Petroleum Corporation, Petrobras, ADNOC Group., Eni S.p.A., TotalEnergies, Shell International B.V., Marathon Petroleum Corporation, Valero, LUKOIL, and ROSNEFT.

Additionally, the growth in developing economies, infrastructure investments, and increasing demand for petrochemical products are expected to support market expansion. Advances in extraction technologies, such as hydraulic fracturing and deepwater drilling, are contributing to higher production capacities.

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Key Highlights:

1. The global crude oil market size was recorded at USD 3,278.00 billion in 2023.
2. The market is projected to grow at a CAGR of 2.90% from 2024 to 2031.
3. Asia-Pacific held a share of 40.12% in 2023, valued at USD 1,315.13 billion.
4. The light crude oil segment garnered USD 1,504.60 billion in revenue in 2023.
5. The conventional crude oil segment is expected to reach USD 2,925.86 billion by 2031.
6. The transportation fuel segment is projected to generate a revenue of USD 2,154.14 billion by 2031.
7. The automotive & aviation segment is estimated to hit USD 1,793.71 billion by 2031.
8. Asia Pacific is anticipated to grow at a CAGR of 3.91% during the forecast period.

Market Driver

"Rising Global Energy Demand"

The growing global energy demand contributing to the growth of the crude oil market. Rapid industrialization in emerging economies, population growth, and increased transportation needs continue to fuel demand.

Countries such as China and India are witnessing a surge in energy consumption due to expanding manufacturing sectors and rising vehicle ownership. Additionally, global economic recovery efforts post-pandemic has driven industrial output, further increasing crude oil consumption.

• In January 2024, India Brand Equity Foundation (IBEF) reported the government has implemented policies allowing 100% FDI in key sectors such as natural gas and refineries. Public sector refining projects now permit 49% FDI without diluting domestic equity. Attracting major players such as Reliance Industries Ltd (RIL) and Cairn India, the industry is set to receive USD 25 billion in exploration and production investments.

Market Challenge

"Geopolitical Uncertainty and Supply Disruptions"

The crude oil market is highly sensitive to geopolitical factors, as major oil-producing regions often face political instability, conflicts, and regulatory interventions that disrupt global supply chains. idle Eastern countries, including Saudi Arabia, Iran, and Iraq, are key nations in global oil production.

However, regional tensions such as military conflicts, trade embargoes, and civil unrest can lead to supply shocks. To mitigate risks associated with geopolitical instability, oil-importing nations can diversify their supply sources by developing new trade agreements with multiple producing countries.

Market Trend

"Increased Investment in Low-Carbon Oil Production"

With increasing pressure for sustainability, oil companies are increasingly investing in low-carbon crude production techniques. Carbon capture, utilization, and storage (CCUS) technologies, enhanced oil recovery (EOR) using CO₂ injection, and electrification of oil extraction processes are gaining traction.

Major oil producers are integrating ESG (Environmental, Social, and Governance) initiatives, committing to carbon-neutral operations, and aligning with global decarburization goals.

Additionally, regulatory policies and investor scrutiny are pushing oil firms to adopt cleaner extraction technologies while maintaining production efficiency. This trend reflects the industry’s effort to balance energy security with environmental responsibility.

• For instance, In November 2024, the Oil and Gas Climate Initiative (OGCI) reported that its member companies reduced emissions and flaring from operated assets in 2023, while also enhancing efforts to assist other companies in emissions reduction. According to the group's annual Progress Report, OGCI members increased low-carbon investments to a record $29.7 billion in 2023, marking a 15% year-on-year growth. This underscores the sector’s strategic shift toward sustainability while maintaining its core focus on global energy supply.

Crude Oil Market Report Snapshot

Market Segmentation

• By Type (Light Crude Oil, Medium Crude Oil, Heavy Crude Oil, and Extra-Heavy Crude & Bitumen): The light crude oil segment earned USD 1,504.60 billion in 2023 due to its higher refining efficiency, lower sulfur content, and increasing demand for premium petroleum products such as gasoline and diesel.
• By Extraction Method (Conventional Crude Oil and Unconventional Crude Oil): The conventional crude oil segment held a share of 76.09% in 2023, largely attributed to its established extraction infrastructure, lower production costs compared to unconventional methods, and continued reliance on conventional reserves by major oil-producing nations.
• By Application (Transportation Fuel, Industrial Use, Petrochemicals, and Power Generation): The transportation fuel segment is projected to reach USD 2,154.14 billion by 2031, as a result of sustained global demand for gasoline, diesel, and jet fuel, particularly in emerging economies.
• By End-User Industry (Automotive & Aviation, Manufacturing & Chemicals, Electricity & Utilities, and Maritime & Shipping): The automotive & aviation segment is projected to reach USD 1,793.71 billion by 2031, owing to the growing global vehicle fleet, rising air travel demand, and increasing fuel consumption in commercial and passenger transportation.

Crude Oil Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Countries such as China and India are major crude oil importers due to their growing demand for fuel and petrochemical products. Additionally, increasing refinery capacities and strategic crude oil reserves bolster regional market expansion.

• For instance, in January 2025, Ministry of Petroleum & Natural Gas reported that India's petroleum industry has advanced through technology and policy reforms, with initiatives such as NELP boosting exploration. The country’s energy sector is evolving rapidly, supported by substantial reserves of 651.8 million metric tons of recoverable crude oil and 1,138.6 billion cubic meters of natural gas within its sedimentary basins, strengthening its energy security and market potential.

Europe crude oil industry is set to grow at a CAGR of 2.55% over the forecast period. This expansion is fostered by rising energy security concerns, increased investments in refining and storage facilities, and policy shifts to diversify crude oil supply sources. The region is actively reducing its reliance on Russian crude imports, leading to stronger trade ties with Middle Eastern and U.S. oil producers.

Regulatory Framework

• In the U.S., the market is regulated by the Commodity Futures Trading Commission (CFTC) for futures trading, the Environmental Protection Agency (EPA) for environmental compliance, and the Bureau of Land Management (BLM) for drilling on federal lands, ensuring market transparency, sustainability, and responsible resource management.
• In Europe, the European Commission (EC) oversees the market by developing energy policies, enforcing competition laws, and ensuring market transparency. It oversees supply security, sustainability, and pricing regulations while coordinating with national regulators to maintain a competitive and stable energy market across the European Union.
• In India, the Ministry of Petroleum and Natural Gas (MoPNG) monitors the market, formulating policies for exploration, production, refining, and distribution. The Petroleum and natural gas regulatory board (PNGRB) oversees pricing, infrastructure, and distribution to ensure a competitive and efficient energy sector.

Competitive Landscape

The global crude oil market is characterized by a number of participants, including both established corporations and emerging players. Key market participants are fostering innovation and advancing technology to strengthen their market position in a highly dynamic industry.

With applications spanning energy, transportation, petrochemicals, and industrial manufacturing, companies are continuously enhancing exploration, refining, and distribution processes to meet sector-specific demands.

As the market experiences significant shifts due to geopolitical factors, sustainability initiatives, and fluctuating demand, businesses are prioritizing regional penetration, adapting strategies to address localized regulatory and market requirements while simultaneously scaling operations to capitalize on broader international opportunities.

• In February 2025, Petro Victory Energy acquired 13 oil fields in Brazil's Potiguar Basin, expanding its production portfolio and strengthening its market presence. This strategic acquisition enhances the company’s reserves, boosts operational capacity, and aligns with its growth strategy in Brazil’s energy sector, capitalizing on the region’s proven hydrocarbon potential.

List of Key Companies in Crude Oil Market:

• Saudi Arabian Oil Co.
• CNPC
• Chevron Corporation
• bp p.l.c.
• Exxon Mobil Corporation
• Kuwait Petroleum Corporation
• Petrobras
• ADNOC Group.
• Eni S.p.A.
• TotalEnergies
• Shell International B.V.
• Marathon Petroleum Corporation
• Valero
• LUKOIL
• ROSNEFT

Recent Developments (M&A)

• In October 2023, ExxonMobil announced a merger with Pioneer Natural Resources in an all-stock transaction, reinforcing its position in the U.S. shale market. This strategic move enhances ExxonMobil’s Permian Basin operations, expanding production capabilities and resource efficiency to drive long-term growth in the crude oil sector.
• In October 2023, Chevron acquired Hess Corporation in an all-stock deal, strengthening its position in the global market. This strategic move enhances Chevron’s access to Guyana’s offshore reserves and U.S. shale assets, boosting production capacity and long-term energy security.