The Marine Gas Oil Market is Segmented by End-user (Tanker Fleet, Container Fleet, Bulk and General Cargo Fleet, Ferries, Offshore Support Vessel (OSV), and Other End-user Types) and Geography (North America, Europe, Asia-Pacific, South America, Asia-Pacific, Middle East and Africa, and South America). For each segment, the market sizing and forecasts have been done based on revenue (USD million).

Vacuum Gas Oil Market size was valued at USD 359.38 Billion in 2024 and is projected to reach USD 559.96 Billion by 2031, growing at a CAGR of 5.70% from 2024 to 2031.

Global Vacuum Gas Oil Market Drivers

Crude Oil Price Fluctuations: The price of crude oil has a significant impact on the VGO market. Oil price volatility can affect the profitability and refining margins, which makes market participants hesitant to invest in the infrastructure needed for VGO production or processing.

Environmental Regulations: Tight environmental rules pertaining to petroleum product extraction, refining, and transportation, including VGO, make market expansion difficult. Requirements for waste disposal, emissions requirements, and carbon reduction targets may need large investments in infrastructure and technology changes.

Transition to Renewable Energy: The market for conventional petroleum products like VGO is long-term threatened by the world’s shift to renewable energy sources including solar, wind, and biofuels. Government attempts to encourage the use of renewable energy sources and reduce carbon emissions may hinder VGO’s market prospects in the future.

Refining Industry Overcapacity: In certain areas, production exceeds demand, posing an overcapacity problem for the industry. This oversupply situation might impede market growth and investment opportunities by putting pricing pressure on VGO producers and refiners and reducing their profits.

Competition from Alternative Feedstocks: For usage in the processing of petroleum and petrochemicals, VGO faces competition from alternative feedstocks including shale oil and natural gas liquids (NGLs). The market potential for VGO in specific applications may be restricted by technological improvements and the cost-competitiveness of alternative feedstocks.

Economic Uncertainty: The global energy demand and investment sentiment can be impacted by economic downturns, geopolitical tensions, and trade disputes, all of which can have an effect on the VGO market. In VGO-related initiatives, uncertainty about the state of the economy may cause cautious expenditure and a delay in investment decisions.

The global oil and gas market size reached USD 20.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 72.6 Billion by 2033, exhibiting a growth rate (CAGR) of 15.21% during 2025-2033. The global market is currently influenced by geopolitical tensions, technological advancements, and shifting environmental policies, leading to volatile prices and driving industry players towards innovation and sustainability to navigate the challenges of supply disruptions, regulatory pressures, and changing consumer preferences.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type and application.

US Oil And Gas Upstream Market size was valued at USD 923.44 Million in 2024 and is projected to reach USD 1094.75 Million by 2032, growing at a CAGR of 2.15% from 2026 to 2032.

Key Market Drivers

Growing Domestic Oil Production and Energy Independence: The United States has greatly increased its oil and gas production capacity, hence boosting its position in global energy markets. According to the Energy Information Administration (EIA), US crude oil output hit a new high of 13.3 million barrels per day in 2023, a 32% increase from 2018. According to the US Department of Energy, domestic oil output has reduced petroleum imports by 65% since 2010, and the US became a net energy exporter in 2020, exporting an average of 3.6 million barrels of petroleum products per day in 2023.

Technological Advancements in Drilling and Extraction: Advanced drilling technologies and improved extraction procedures have greatly increased production efficiency.

Norway's oil and gas market was worth around 27.05 billion U.S. dollars in 2022. This market value is forecast to increase to more than 70 billion U.S. dollars by 2030. More information on the global oil and gas market can be found here.

The Report Covers US Oil and Gas Market Trends and Industry Overview and it is Segmented by Sector (Upstream, Midstream, and Downstream).

Explore the Oil And Gas Market trends! Covers key players, growth rate 4.9% CAGR, market size $9894.48 Billion, and forecasts to 2034. Get insights now!

The Russia Federation Oil and Gas Market is Segmented by Sector (Upstream, Midstream, and Downstream) and Location of Deployment (Onshore and Offshore). The report offers crude oil production and consumption forecast (thousand barrels per day), natural gas production and consumption forecast (billion cubic feet per day), refining capacity forecast (thousand barrels per day, and LNG terminal installed capacity forecast (MTPA).

The Report Covers Thailand Oil and Gas Market Size & Share and it is segmented by Sector (Upstream, Midstream, and Downstream). The report offers the size and forecasts for the Thailand oil and gas markets in volume.

The report covers Gabon Oil and Gas Companies and it is segmented by Sector (Upstream, Midstream, and Downstream). The report offers a crude oil production forecast (thousand barrels per day).

The Vacuum Gas Oil Market is projected to grow at 6.0% CAGR, reaching $587.24 Billion by 2029. Where is the industry heading next? Get the sample report now!

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Vacuum Gas Oil Market Size 2024-2028

The vacuum gas oil market size is forecast to increase by USD 115.5 billion at a CAGR of 5.15% between 2023 and 2028.

The Vacuum Gas Oil (VGO) market is experiencing significant growth, driven by the increasing demand for gasoline and diesel fuels worldwide. With the global transportation sector continuing to expand, the need for middle distillates such as VGO is on the rise. Furthermore, the refining industry is undergoing a wave of upgradation, with companies investing heavily in modernizing their facilities to meet evolving market requirements and improve the efficiency of their operations. However, the VGO market is not without its challenges. One major concern is the fluctuation of VGO quality due to varying crude oil sources and refining processes. This inconsistency can impact the compatibility of VGO with other petroleum products and may necessitate additional processing or blending, leading to increased costs for refiners and potential supply disruptions. Companies operating in this market must stay abreast of these trends and adapt to ensure they can deliver high-quality VGO consistently to meet customer demands and maintain their competitive edge.

What will be the Size of the Vacuum Gas Oil Market during the forecast period?

Request Free SampleThe vacuum gas oil (VGO) market is a significant segment of the petrochemical sector, serving as an intermediate feedstock in the crude oil refining process. Vacuum gas oil is derived from the distillation of crude oil using vacuum distillation technology, making it an essential component in the production of transportation fuels such as gasoline and diesel. The market's size and direction are influenced by various factors, including energy demand, environmental regulations, and technical advancements. The increasing demand for transportation fuels, driven by automotive demand and the need for bunker fuels in shipping and aviation industries, continues to boost the VGO market. Environmental regulations, particularly those aimed at reducing emission content, have led to the adoption of more efficient refinery operations and the integration of fluid catalytic crackers (FCCs) and vacuum distillation units. These technological advancements enable refineries to maximize the yield of valuable intermediate feedstocks, including VGO, from crude oil. Despite these positive trends, the VGO market faces challenges, including the increasing focus on renewable energy sources and the potential impact of geopolitical tensions on crude oil supply. Nevertheless, the industry outlook remains positive, with ongoing investments in refinery modernization and the continued demand for VGO as a critical feedstock in the production of gasoline, diesel, and other petrochemicals.

How is this Vacuum Gas Oil Industry segmented?

The vacuum gas oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. ProductLower sulphur contentHigh sulphur contentTypeLight VGOHeavy VGOGeographyNorth AmericaUSCanadaAPACChinaIndiaMiddle East and AfricaEuropeSouth America

By Product Insights

The lower sulphur content segment is estimated to witness significant growth during the forecast period.The Vacuum Gas Oil (VGO) market has undergone substantial transformation over the past decade due to increasing environmental regulations, particularly in relation to sulfur content in fuels. This trend is exemplified by the European Union (EU), which implemented new regulations in 2020 mandating a maximum sulfur content of 0.1% in fuel used by ships in its waters. This shift is driven by growing concerns over the environmental and health impacts of sulfur emissions from various industries, including oil and gas. Crude oil refining processes, such as vacuum distillation, play a crucial role in producing VGO as an intermediate feedstock for the production of transportation fuels, including gasoline and diesel, as well as bunker fuels and petrochemicals. As the demand for low-sulfur fuels continues to grow, refineries are investing in upgrading their operations through the use of advanced technologies like Fluid Catalytic Crackers (FCC) and secondary refining processes like diesel hydrocracking. The global energy demand, particularly in emerging economies, continues to drive the need for increased refining capacity and the production of cleaner fuels. However, economic slowdowns and fluctuating crude oil prices can impact market growth. Key players in the VGO market include major oil and gas companies, and market research firms like , , and provide insights into market trends and growth opportunities.

Get a glance at the market report of share of various segments Request Free Sample

The Lower sulphur content segment was

The global oil & gas analytics market was valued at USD 13.20 billion in 2021 and is expected to grow at a CAGR of 17.4% during the forecast period.

The average annual net income from the oil and gas industry worldwide is projected to decrease in the coming years. For instance, Saudi Arabia's oil and gas industry generated a net income of 347 billion U.S. dollars in 2022, but this figure is expected to decline by some 19 percent under a stated policies (STEP) scenario, and up to 47 percent under a net-zero (NZE) scenario. The STEP scenario is based on current policies both already in place and under development while the NZE scenario assumes that the global energy sector will achieve net zero CO₂ emissions by 2050. Saudi Arabia is currently the second-largest crude oil producer worldwide, only behind the United States.

Fuel Oil Market size was valued at USD 189.66 Billion in 2024 and is projected to reach USD 271.99 Billion by 2031, growing at a CAGR of 4.61% from 2024 to 2031.

The Fuel Oil Market is driven by several factors, including its widespread use in various industrial applications such as power generation, marine transportation, and industrial heating. In regions with colder climates, fuel oil remains a significant source of heating for residential and commercial buildings. Additionally, the availability and relatively lower cost of fuel oil compared to other fuels contribute to its continued use in certain sectors. However, the market faces challenges from the increasing adoption of cleaner energy sources, such as natural gas and renewable energy, and stringent environmental regulations aimed at reducing emissions.

The gross output of the U.S. oil and gas extraction industry stood at 478.75 billion U.S. dollars in 2023, up from 652.94 billion dollars in the previous year. Gross output saw a net increase since 2017 and generally reflect changes in crude oil prices and underlying world market developments. Growth in industry's value added Taking into account the cost of services and goods used during production, the industry's value added has increased along greater gross output. In 2023, value added by the U.S. oil and gas extraction industry climbed to over 250 billion U.S. dollars. Trends in domestic oil production Domestic oil production has grown exceptionally since technological advances and historically high oil prices made shale mining profitable. Between 2008 and 2023, U.S. oil production increased nearly three-fold, reaching a new peak in the latter year.

Explore the complex factors influencing gas oil prices, a key fuel for industries like transportation and agriculture. From crude oil costs to refining, distribution, market speculation, and government policies, discover how economic conditions and geopolitical elements shape the pricing structure.

As per Cognitive Market Research's latest published report, the Global Oil Exploration and Production market size is $3,588.98 Million in 2024 and it is forecasted to reach $5,116.57 Billion by 2031. Oil Exploration and Production Industry's Compound Annual Growth Rate will be 5.20% from 2024 to 2031. Market Dynamics of the Oil Exploration and Production Market

Market Driver for the Oil Exploration and Production Market

The increasing investment in oil sector by several government bodies worldwide elevates the market growth 

Many countries view a stable and secure energy supply as crucial for their economic development and national security. Investing in the oil sector helps ensure a reliable source of energy. Oil exploration and production contribute significantly to the economic growth of a country. Governments often invest in the oil sector to capitalize on the potential for high returns, which can be used to fund public services, infrastructure projects, and other essential programs. Despite efforts to transition to renewable energy sources, the global demand for oil remains high. Governments recognize the need to meet this demand and ensure a stable energy supply to support industrial processes, transportation, and other key sectors. The oil and gas industry encompasses activities linked to exploration, including the search for hydrocarbons, identification of high-potential areas for oil and gas extraction, test drilling, the construction of wells, and initial extraction. According to the Center on Global Energy Policy, data 2023, the 2021–22 period of high oil and gas prices did not lead to a significant increase in capital spending by private companies despite record profits. One exception has been upstream exploration and production (E&P) companies, whose capital spending in 2022 was the highest since 2014.   According to the International Labor Organization (ILO), data 2022, the oil and gas industry makes a significant contribution to the global economy and to its growth and development worldwide. The oil industry alone accounts for almost 3 per cent of global domestic product. The trade in crude oil reached US$640 billion in 2020, making it one of the world’s most traded commodities. Additionally, the industry is highly capital-intensive. Globally investments in oil and gas supply reached more than US$511 billion in 2020. According to the oil and gas industry outlook, data 2023, rapid recovery in demand, and geopolitical developments have driven oil prices to 2014 highs and upstream cash flows to record levels. In 2022, the global upstream industry is projected to generate its highest-ever free cash flows of $1.4 trillion at an assumed average Brent oil price of $106/bbl. Until now, the industry has practiced capital discipline and focused on cash flow generation and pay-out—2022 year-to-date average O&G production is up by 4.5% over the same period last year, while 2022 free cash flows per barrel of production is projected to be higher by nearly 70% over 2021. In addition, high commodity prices and growing concerns over energy security are creating urgency for many to diversify supply and accelerate the energy transition. As a result, clean energy investment by Oil &Gas companies has risen by an average of 12% each year since 2020 and is expected to account for an estimated 5% of total Oil & Gas capex spending in 2022, up from less than 2% in 2020.Therefore, investments made over recent decades enabled the United States to become a world leader in oil and natural gas production. Thus, owing to increased oil production, the demand for oil exploration and production has surged during the past few years.

The rising demand for oil across both commercial and residential sector is expected to drive the market growth 

Oil remains a primary source of energy for transportation, including cars, trucks, ships, and airplanes. The growing global population, urbanization, and increased industrial activity contribute to a rise in the number of vehicles and the overall demand for transportation fuels derived from oil, such as gasoline and diesel. Many industrial processes rely on oil and its by-products as energy sources and raw materials. Industries such as manufacturing, petrochemicals, and construction utilize oil-based products for various applications, including heating, power generation, and the production of pl...

UK oil and gas production has diminished over the past decade because old oil fields have matured, and developing new commercially viable sources has become increasingly challenging. To combat this, extractors have pooled their resources and formed partnerships to enhance efficiency, while some have benefitted from previous investments in fields coming onstream. Oil and gas extracting companies also have reaped the rewards of an upsurge in global prices through 2022-23, leading to sharp revenue growth. However, this quickly turned around in 2023-24, with most major companies’ revenue nosediving along with oil prices. Revenue is expected to expand at a compound annual rate of 3.4% over the five years through 2024-25 to just over £33 billion. This includes a forecast hike of 5.3% in 2024-25; however, profit is slated to inch downward over the year as global oil and gas prices remain somewhat flat in the second half of 2024-25. The industry's performance is greatly affected by world oil and gas prices, with supply cuts put into place by the Organisation of the Petroleum Exporting Countries (OPEC) and global tensions resulting in price peaks and troughs. In October 2022, OPEC instituted a supply cut of two million barrels of crude oil per day, driving Brent Crude Oil prices up to US$110 (£87.80) per barrel, which has been extended until March 2025, with a ramping up period through September 2025. The sanctions on Russian oil and gas imports because of the Russia-Ukraine conflict add further impetus to prices. The EU has banned imports of Russian-made oil and gas, providing opportunities for UK exporters. Crude oil prices remain high, but significant oil production from non-OPEC countries threatening a glut in the oil market and a significant dip in global demand (especially from China) have made oil prices tumble sharply since July 2024. Despite mounting tensions in the Middle East having the potential to cut oil supply from the region, the ongoing political tensions have yet to significantly impact global prices, with prices hiking up around 10% in the month to October 2024, but remaining relatively low. Oil and gas prices are likely to continue inching downwards in the coming years as America is forecast to continue ramping up the global oil and gas supply. This, along with an expected reduction in global demand for oil and gas in the long term, will limit growth. The UK government will implement policies to create a more favourable environment for extractors and further investment in the North Sea to improve UK energy security. However, the depletion of natural resources, the expensive cost of extraction, low gas and oil prices and the global energy transition will threaten the industry's long-term viability. The government announced a delay to the ban on the sale of new petrol and diesel cars, along with the relaxation of some net-zero policies in September 2023, which should keep fossil fuel explorers afloat for longer. Revenue is forecast to rise at a compound annual rate of 3.4% over the five years through 2029-30 to just over £39 billion.

Global Oil And Gas Supporting Activities Market to hit USD 414.05B by 2029 growing at 5.4% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.