The United Kingdom Oil and Gas Market is Segmented by Sector (Upstream, Downstream, and Midstream). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Petroleum refining companies in the UK produce a wide variety of products. Fuels for transport and heating are the most common, with petroleum products for transport accounting for almost three-quarters of product demand. Industry revenue is expected to swell at a compound annual rate of 2.6% over the five years through 2024-25 to £50.7 billion, including a forecast dip of 0.2% in 2024-25, owing to staggering volatility in oil prices in recent years. The COVID-19 pandemic took its toll on the industry. Global border and travel restrictions dented both demand for fuel and fuel prices, weighing on revenue and profitability for refiners. However, this trend was quickly reversed following Russia's invasion of Ukraine in February 2022. This led to the UK and other major economies announcing they would wean themselves off Russian oil, leading to a sharp spike in oil prices over 2022-23 and, to a lesser degree, 2023-24. Strong oil price inflation translated into higher value sales for refined oil companies, paving the way for a strong recovery. A number of petroleum refiners have altered their production to focus on diesel as the new primary fuel. Both petrol and diesel face rising competition from alternatively fuelled vehicles due to their reduced emissions, lowering demand for oil-derived fuels. Industry revenue is forecast to climb at a compound annual rate of 6.1% over the five years through 2029-30 to £68.4 billion. Demand for petrol and diesel-fuelled vehicles is set to fall due to government initiatives designed to reduce emissions, including the extension of Clean Air Zones and the banning of new petrol and diesel cars by 2030. Demand for pure electric vehicles will continue to climb, presenting a significant threat to fuel demand in the long term.

The United Kingdom oil and gas market size reached USD 587.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 685.3 Million by 2033, exhibiting a growth rate (CAGR) of 1.7% during 2025-2033. The market is driven by various factors including rising energy security concerns, fluctuating global oil prices, regulatory changes, investment in renewable energy, and the need for infrastructure upgrades, alongside efforts to decarbonize and meet net-zero targets.

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

The United Kingdom fuel oil market size is estimated to be valued at USD 217.60 Million in 2024.

Primary energy consumption in the United Kingdom amounted to roughly seven exajoules in 2023. Overall, oil and natural gas were by far the most consumed fuels in the country. By comparison, consumption of primary energy from renewables stood at 1.38 exajoules that year, up from 1.36 the year prior.

In 2023, average price of heavy fuel for all consumers amounted to 1,057.3 British pounds per metric ton. Overall, small consumer tend to pay higher prices compared to medium and large consumers. Price of heavy fuel oil per metric ton for the manufacturing industry has oscillated since 2010. Between 2010 and 2012, the average price of all consumers continuously increased. From 2013 onwards, figures declined to the low of 359.5 British pounds per metric ton in 2016, and rose in the following years.

The United Kingdom oil and gas market was valued at USD 330.50 Billion in 2024. The industry is expected to grow at a CAGR of 1.65% during the forecast period of 2025-2034 to attain a valuation of USD 389.26 Billion by 2034.

United Kingdom Purchase Price: Heavy Fuel Oil: Small Scale Industry data was reported at 574.273 GBP/Tonne in Jun 2018. This records an increase from the previous number of 555.725 GBP/Tonne for Mar 2018. United Kingdom Purchase Price: Heavy Fuel Oil: Small Scale Industry data is updated quarterly, averaging 167.850 GBP/Tonne from Mar 1989 (Median) to Jun 2018, with 118 observations. The data reached an all-time high of 711.300 GBP/Tonne in Mar 2013 and a record low of 63.000 GBP/Tonne in Mar 1992. United Kingdom Purchase Price: Heavy Fuel Oil: Small Scale Industry data remains active status in CEIC and is reported by Department for Business, Energy and Industrial Strategy. The data is categorized under Global Database’s United Kingdom – Table UK.P008: Energy Overview: Purchase Price.

United Kingdom Purchase Price: Heavy Fuel Oil: Large Scale Industry data was reported at 408.163 GBP/Tonne in Jun 2018. This records an increase from the previous number of 401.895 GBP/Tonne for Mar 2018. United Kingdom Purchase Price: Heavy Fuel Oil: Large Scale Industry data is updated quarterly, averaging 143.700 GBP/Tonne from Mar 1989 (Median) to Jun 2018, with 118 observations. The data reached an all-time high of 634.600 GBP/Tonne in Mar 2012 and a record low of 56.700 GBP/Tonne in Mar 1992. United Kingdom Purchase Price: Heavy Fuel Oil: Large Scale Industry data remains active status in CEIC and is reported by Department for Business, Energy and Industrial Strategy. The data is categorized under Global Database’s United Kingdom – Table UK.P008: Energy Overview: Purchase Price.

UK oil and gas production has diminished over the past decade because old oil fields have matured while 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 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, as growing global oil and gas from America flooded the market, slightly outpacing demand. 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. Global oil and gas prices greatly affect the industry's performance, with the Organisation of the Petroleum Exporting Countries (OPEC) putting supply cuts in place 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. This is set to keep oil prices stable by limiting global oil supplies in the face of growing production in non-OPEC countries. 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) has made oil prices plummet 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 the US is forecast to continue ramping up the global oil and gas supply. This, along with an expected drop 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 climb at a compound annual rate of 3.4% over the five years through 2029-30 to just over £39 billion.

The UK's fuel use by industry (SIC 2007 group - around 130 categories) and type (coal, natural gas, petrol, diesel oil for road vehicles (DERV), fuel oil, gas oil, aviation fuel and other); UK level fuel use of nuclear, hydro, wind, solar, geothermal aquifers and net imports, 1990 to 2023. This table excludes biofuels and waste.

The size of the Oil and Gas Industry in UK market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 1.35% during the forecast period.Oil and gas are fossil fuels, which derive from millions of years ago, that is, plants and animals. Oil is a liquid hydrocarbon whereas the natural gas is a gaseous hydrocarbon. The processes of drilling and production obtain these fuels from the underground reservoirs.UK oil and gas industry: The major contributor to the economy of the country; gives energy security and provides revenues. The North Sea is the largest oil and gas production area, with most of its platforms having access to these liquids. They are used in transporting fluids around, for space heating, electricity generation, and as feedstocks for petrochemicals and other purposes. However, there are setbacks such as declining production, environmental pressure, and worldwide trends towards cleaner sources of energy. Now, the UK government is promoting an adjustment toward a low-carbon economy while saving for an oil and gas industry with a sustainable future. Recent developments include: May 2023: Shell PLC, a major oil and gas company from the United Kingdom, and big-data analytics company SparkCognition announced their collaboration, stating that Shell will leverage artificial intelligence-based technology to enhance offshore oil exploration and production in deep-sea exploration and production., May 2022: BP PLC, one of the major oil and gas companies, announced that they are going to invest USD 22.5 billion in the oil and gas fields located in the North Sea by the end of 2030 to ramp up production activities in the region with decreased emissions. This will help the United Kingdom boost its energy security and sustainably meet its increased energy demands.. Key drivers for this market are: 4., Domestic Oil and Gas Production4.; Investments in Oil and Gas Infrastructure Development. Potential restraints include: 4., Growth of Renewable Energy. Notable trends are: Upstream Segment Expected to Dominate the Market.

The article discusses the increasing demand for oil or petrol-filters for internal combustion engines in the UK, with the market expected to continue growing over the next decade. Market performance is forecasted to expand with a +0.9% CAGR in volume terms and +2.4% CAGR in value terms, reaching 53M units and $565M respectively by 2035.

The report covers UK Midstream Oil and Gas Companies and the market is segmented by Transportation, Storage, and LNG Terminals.

The turnover of the extraction of crude petroleum and natural gas industry in the United Kingdom increased by 4.7 billion euros (+17.98 percent) in 2018 in comparison to the previous year. In total, the turnover amounted to 31 billion euros in 2018. For the purpose of Eurstat Dataset NACE Rev.2 Section K turnover comprises the totals invoiced by the observation unit during the reference period, which corresponds to market sales of goods or services supplied to third parties.Find more statistics on other topics about the United Kingdom with key insights such as turnover of the mining and quarrying industry, number of employees in the extraction of crude petroleum and natural gas industry, and personnel costs of the extraction of crude petroleum and natural gas industry.

United Kingdom Market Capitalisation: AIM: Oil and Gas data was reported at 8,104.837 GBP mn in Oct 2018. This records a decrease from the previous number of 8,755.865 GBP mn for Sep 2018. United Kingdom Market Capitalisation: AIM: Oil and Gas data is updated monthly, averaging 10,878.251 GBP mn from Jan 2006 (Median) to Oct 2018, with 154 observations. The data reached an all-time high of 20,242.140 GBP mn in Feb 2012 and a record low of 3,232.342 GBP mn in Jan 2016. United Kingdom Market Capitalisation: AIM: Oil and Gas data remains active status in CEIC and is reported by London Stock Exchange. The data is categorized under Global Database’s United Kingdom – Table UK.Z006: London Stock Exchange: Market Capitalisation: AIM Market.

In 2023, average price of gas oil for all consumers amounted to 1,100 British pounds per metric ton. Overall, small consumer tend to pay higher prices compared to medium and large consumers. Between 2010 and 2012, average price for all consumers continuously increased. From 2013 onwards, figures declined to the low of 476.7 British pounds per metric ton in 2016, and rose in the following years.

United Kingdom Purchase Price: Gas Oil: Medium Scale Industry data was reported at 637.026 GBP/Tonne in Jun 2018. This records an increase from the previous number of 618.638 GBP/Tonne for Mar 2018. United Kingdom Purchase Price: Gas Oil: Medium Scale Industry data is updated quarterly, averaging 238.900 GBP/Tonne from Mar 1989 (Median) to Jun 2018, with 118 observations. The data reached an all-time high of 817.300 GBP/Tonne in Mar 2013 and a record low of 118.400 GBP/Tonne in Mar 1989. United Kingdom Purchase Price: Gas Oil: Medium Scale Industry data remains active status in CEIC and is reported by Department for Business, Energy and Industrial Strategy. The data is categorized under Global Database’s United Kingdom – Table UK.P008: Energy Overview: Purchase Price.

The oil and gas support activities industries include a wide range of products and services, like geological observations, well drilling and spudding, used by oil and gas companies from the prospecting to the decommissioning stage of their operations. Industry revenue is expected to climb at a compound annual rate of 2.5% to £7.6 billion over the five years through 2024-25, including a 2.6% hike in 2024-25, when the average profit margin is projected to drop to 3.8%. Oil and gas support companies' revenue is highly susceptible to fluctuations in oil and gas prices, which is why the COVID-19 pandemic and the Russian invasion of Ukraine have wreaked havoc on the industry. The pandemic led to a significant proportion of investment being deferred due to historically low oil prices over 2020-21. The Russian invasion of Ukraine in February 2022 led to oil and gas prices skyrocketing as concerns about supply spread rapidly. The ongoing conflict and sanctions led to a sharp expansion in exploration activity and the need for support services, lifting revenue in 2021-22 and 2022-23. However, growing global oil supplies produced mainly in America are pushing oil prices down in 2024-25 despite OPEC+ supply cuts to attempt to keep prices up. If prices continue to drop, this might threaten investment in oil and gas exploration and extraction, hitting support activity companies. Growing policy uncertainty is also threatening investment in 2024-25 as possible tax hikes hit oil and natural gas companies’ confidence in the profitability of North Sea operations. Revenue is forecast to grow at a compound annual rate of 3.4% to just over £9 billion over the five years through 2029-30. This is mostly due to a fast-growing need for decommissioning activity in the North Sea due to many projects in the region approaching the end of their life cycle. Revenue from other support activities like well drilling is likely to fall in the following years, which is in line with the observed trend of UK well drilling. Government incentives will result in strong demand for cleaner practices that reduce emissions, as the sector has committed to cutting emissions by 50% by the end of 2030.