Global oil and gas transportation industry - statistics & facts
Oil and natural gas are some of the most heavily traded goods in the world. However, as consumer markets are not always overlapping with producing regions, transportation, especially across continents and seas, plays a huge role in shaping the global oil and gas market. The two most common modes of moving crude oil, oil products, and natural gas are via tanker ships and pipelines. In 2023, the global capacity of oil tankers stood at over 650 million tons deadweight.
However, China’s state-owned pipeline operator National Petroleum and Natural Gas Pipeline Network Group (PipeChina) is one of the leading pipeline developers worldwide for both oil and gas transportation. Many of the largest pipeline network extensions are taking shape in Asia, with countries such as Iraq, Iran, and India major investors.
How seaborne and pipeline trade go hand in hand
Although pipelines are often considered the safest and most efficient means of transporting oil and gas products, their construction is a huge undertaking and has not been without controversy. Where distances are too great or where political and topographical issues make pipelines non-viable, oil tankers and LNG vessels are used to transport the respective products. Trading of natural gas in liquefied form is particularly important for gas-producing countries such as Qatar and Australia, which are far removed from big consumer markets and almost exclusively reliant on maritime shipping for foreign trading. Meanwhile, major LNG importing countries are largely concentrated in East Asia, and, more recently, in Europe.Energy demand and security concerns lead to more investments in LNG tanker capacities
Oil tankers ship either crude oil or already refined oil products and come in different size classes of up to 550,000 tons deadweight. As for global LNG tanker capacities, the combined operational capacity stood at 113 million cubic meters in 2023. Greater natural gas demand for power generation, heating, and cooling has pushed the annual global LNG trade volume to around 550 billion cubic meters.Asia to continue building up pipeline infrastructure
The world’s largest oil and natural gas pipeline networks are located in North America. As major producing and refining regions, the United States and Canada have built a vast network of pipelines crisscrossing the continent, with the U.S. having an oil pipeline network roughly three times the size of China’s.However, China’s state-owned pipeline operator National Petroleum and Natural Gas Pipeline Network Group (PipeChina) is one of the leading pipeline developers worldwide for both oil and gas transportation. Many of the largest pipeline network extensions are taking shape in Asia, with countries such as Iraq, Iran, and India major investors.
