Algeria Oil & Gas Upstream Market

The Algeria oil & gas upstream market size is anticipated to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the increasing demand for solutions to produce high quality and light crude oil with low sulfur content.

Upstream refers to the operations stages in the oil & gas industry that involve exploration and production. Upstream, midstream, and downstream are the three segments of oil & gas industry. Many large oil companies offer upstream , midstream, and downstream solutions, Upstream is the early stage process, which includes drilling activities.  This process is from the end-user consumer in the oil & gas supply chain. Upstream is followed by midstream, which includes transportation of crude oil stage and downstream comprises refining and distribution phases.

The upstream segment of the oil & gas industry contains exploration activities, such as creating geological surveys and obtaining land rights and production activities, which include onshore and offshore drilling. Oil & gas exploration encompasses the processes and methods involved in locating potential sites for oil & gas drilling and extraction. Geological surveys are conducted using various methods, such as testing subsoil for onshore exploration and seismic imaging for offshore exploration.

In onshore drilling, the wells are grouped together in a field, ranging from a half acre per well for heavy crude oil to 80 acres per well for natural gas. Offshore drilling uses a single platform consist of fixed or mobile support. In onshore drilling, the group of wells are connected by carbon steel tubes, which consist of oil & gas fields and processing facility where the oil & gas are treated through a chemical and heating process. Onshore production companies can turn on and off rigs more easily than offshore rigs in accordance to the market conditions. Petroleum is the primary product for the production of multitude of chemical products, including pharmaceuticals, fertilizers, solvents, and plastics.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing natural gas production in the oil & gas upstream sector is expected to drive the market growth during the forecast period.
• Rising exploration and production activities in the onshore oil & gas fields is projected to spur the market expansion in the projected timeline.
• Algeria's natural gas exports to Europe are decreased due to cheaper Russian supplies, thereby decreasing the profits for companies in Algeria. This, in turn, can hinder the market growth.
• Increasing environmental concerns is the key concern that can impede the market expansion in the coming years.
• The COVID-19 pandemic had halted the exploration activities and mining activities in the oil & gas industry across the globe. However, the market is anticipated to recover soon owing to declining COVID-19 cases and acceleration in the vaccine drive in the low- and middle-income countries.
• Growing R&D investments and increasing technological advancements in sizeable natural gas field is anticipated to create significant opportunities for the market players during the forecast period.

Scope of the Report

The report on the Algeria oil & gas upstream market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Algeria Oil & Gas Upstream Market Segment Insights

Onshore segment is projected to account for a large market share

 On the basis of locations, the market is bifurcated into onshore and offshore. The onshore segment is expected to constitute a key market share during the forecast period owing to due to increasing investment in gas basins. Algeria held about 12.1 billion barrels of proved crude oil reserves in 2018. The country's proved oil reserves are mostly held on onshore due to limited offshore exploration. However, the offshore segment is anticipated to exhibit a robust CAGR during the forecast period. Increasing penetration of latest technology and development of the solutions to reduce the production of oil & gas through offshore activities are anticipated to spur the segment growth.

Segments

Segments Covered in the Report

The Algeria oil & gas upstream market has been segmented on the basis of

Locations

• Onshore
• Offshore

Country

• Alegeria

Key Players

• Sonatrach SPA
• Engie SA
• Total S.A.
• BP PLC
• Petroceltic Ain Tsila Ltd.

Competitive Landscape

Key players competing in the Algeria oil & gas upstream market include Sonatrach SPA, Engie SA, Total S.A., BP PLC, and Petroceltic Ain Tsila Ltd.