The Denmark oil & gas market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 0.7% during the forecast period, 2023–2031. The growth of the market is attributed to increasing energy demand and ongoing offshore exploration and production projects in the country.
The oil & gas industry includes three major operations that are upstream, midstream, and downstream. The wholesome process involves the extraction process, storage, and refining of the petroleum products.
The energy consumption associated with oil and gas production has remained fairly constant in recent years, accounting for about 4% of Denmark’s total gross energy consumption, even though production has declined over the years. Denmark has a manifest interest to recover maximum amount of oil & gas from the North Sea. This required great amount of financing as extraction requires high energy-intensive recovery methods.
The production of oil and natural gas from the North Sea is key for Danish society and it secures substantial income for the state. The production of oil and gas also positively impacts the Danish balance of payments.
The department of economic affairs (DEA) recent forecast shows that Denmark can maintain its self-sufficiency in oil and natural gas for another ten years, based on known reserves. However, on the basis of experience, the DEA expects that the use of innovative recovery technology and more discoveries resulting from exploration can uphold Denmark’s self-sufficiency in oil and natural gas for an additional ten years.
Oil production has been declining over the past few years. The current production is around 140,000 barrels of oil per day. The production is expected to continue to decline over the next few years. In total, oil production accounts for roughly USD 5.4 Billion per year and gas production generates USD 1.1 Billion per year. After a long period of falling oil prices, the prices have now started to rise as a result of the global growth. This has caused an increase in the demand for oil, yet there still is a decrease in the production of oil.
Oil & Gas Market Drivers, Restraints, Trends, and Opportunities
- The upstream sector is dominating the Denmark oil and gas market. With ongoing and upcoming offshore projects there is expected to be a significant growth in the market during the forecast period.
- The COVID-19 pandemic had disrupted the oil & gas market across the globe. This was due to the closedown of the mining and exploration activities. However, declining number of cases and recovery of the global economy are anticipated to help the market recover soon.
- Most of the oil & gas fields are in the maturing phase, which can hamper the growth of the market.
- The re-development of the Tyra field in the Danish North Sea and completion is expected to be done by 2022. Tyra field is expected to create many opportunities for oil and gas companies in the projected timeline.
Scope of Oil & Gas Market Report
The report on the Denmark Oil & Gas Market includes an assessment of the market, trends, segments and regional markets. Overview and dynamics have also been included in the report.
Oil & Gas Market - Denmark Industry Analysis, Growth, Share, Size, Trends, and Forecast
Sectors (Upstream, Midstream, and Downstream)
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Total SA, Royal Dutch Shell PLC, Equinor ASA, Norwegian Energy Company ASA, and Energinet DK Gaslager A/S
Denmark Oil & Gas Market Segment Insights
Upstream segment to account for a large market share
Based on sectors, the market is divided into upstream, midstream, and downstream. The upstream segment is projected to account for a large market share during the forecast period. Rising consumption of petroleum products and increasing capacity of refining of oil are expected to drive the growth of the market segment
The midstream segment is anticipated to grow at a healthy rate during the forecast period. Midstream activities include transportation and storage of petroleum gas products. Increasing investment of government and private players on deploying storage facilities is propelling the growth of the market segment.
The Denmark oil and gas market is partially consolidated. Some of the major companies include Total SA, Royal Dutch Shell PLC, Equinor ASA, Norwegian Energy Company ASA, Energinet DK, and Gaslager A/S. Major industry players are engaging in mergers and acquisitions to expand their market share. The Government of Denmark is also majorly involving in transforming the oil & gas market.