Crude oil pipeline Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Type (Carbon Steel Tubing, Oil-resistant Rubber Hose), By Application (Onshore Pipeline, Offshore Pipeline), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 15.17 Billion
CAGR (2026-2031)	6.19%
Fastest Growing Segment	Offshore Pipeline
Largest Market	Asia Pacific
Market Size (2031)	USD 21.75 Billion

Market Overview

The Global Crude oil pipeline Market will grow from USD 15.17 Billion in 2025 to USD 21.75 Billion by 2031 at a 6.19% CAGR. The Global Crude Oil Pipeline Market comprises the network of steel conduits and associated infrastructure designed to transport unrefined petroleum from production fields to refineries and export terminals. The primary drivers supporting market growth are the surging energy demand in emerging economies requiring new delivery systems and the urgent necessity to replace aging transport infrastructure in developed regions to ensure supply security.

Despite these positive factors, the market encounters a significant challenge in the form of stringent environmental regulations and geopolitical volatility that frequently delay project execution. According to the Global Energy Monitor, in 2024, the industry is constructing nearly 11,000 kilometers of crude oil transmission pipelines, representing an 8% increase in development compared to the previous year. These complex regulatory landscapes continue to impede rapid market expansion by increasing compliance costs and extending project timelines.

Key Market Drivers

The increasing global demand for crude oil and petroleum products serves as a critical determinant for the trajectory of the pipeline sector. As industrial output accelerates and transportation needs rise, particularly within developing nations, the requirement for efficient hydrocarbon transit networks intensifies. This consumption trajectory compels midstream operators to enhance the throughput capacity of existing conduits and sanction new greenfield projects to bridge the gap between extraction sites and downstream refineries. According to the Organization of the Petroleum Exporting Countries, August 2024, in the 'Monthly Oil Market Report', world oil demand growth is forecast to reach a healthy level of 2.11 million barrels per day in 2024. Consequently, stakeholders are prioritizing infrastructure investments to accommodate these elevated flow volumes and prevent supply bottlenecks.

Strategic expansion of cross-border energy infrastructure further propels market development, driven by the need to secure export routes and stabilize regional energy supplies. Governments and energy conglomerates are capitalizing on these capital-intensive projects to facilitate the movement of surplus production to international buyers, thereby integrating regional markets. A prominent instance of such infrastructure completion occurred recently in North America. According to Trans Mountain Corporation, May 2024, in the 'Commencement of Commercial Operations' announcement, the expanded pipeline system began operations with a total estimated cost of CAD 34 billion. These large-scale transmission projects are essential to manage surging output levels from key production zones. According to the U.S. Energy Information Administration, in 2024, domestic crude oil production is projected to average 13.2 million barrels per day, creating a sustained requirement for reliable transmission capacity.

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Key Market Challenges

Stringent environmental regulations and geopolitical volatility constitute a formidable barrier to the Global Crude Oil Pipeline Market, directly curtailing infrastructure development and operational efficiency. These complex compliance mandates frequently result in prolonged permitting processes, legal challenges, and indefinite project suspensions, which erode investor confidence and escalate capital costs. Consequently, pipeline operators face heightened financial risks, making long-term planning increasingly difficult in politically unstable or environmentally sensitive regions.

This uncertainty significantly hampers the mobilization of necessary capital for infrastructure maintenance and expansion, stalling critical projects despite the clear necessity for supply network upgrades. The inability to secure timely funding creates a disparity between the infrastructure required for energy security and the actual capacity being developed. According to the Organization of the Petroleum Exporting Countries, in 2025, the global oil midstream sector requires a cumulative investment of $1.3 trillion through 2050 to meet projected demand. However, the prevailing regulatory friction and geopolitical instability severely obstruct the industry's ability to attract and deploy this critical funding, leading to potential supply bottlenecks and reduced market growth.

Key Market Trends

Market consolidation through strategic midstream M&A activities is reshaping the industry as companies seek to optimize balance sheets. Operators are pursuing acquisitions to integrate complementary assets, enhancing operational synergies without the regulatory hurdles of greenfield construction. This trend allows entities to diversify their pipeline networks efficiently. A prime example occurred in the United States when a major distributor absorbed a competitor. According to Sunoco LP, May 2024, in the 'Sunoco LP Completes Acquisition of NuStar Energy LP' press release, the company finalized its merger with NuStar Energy LP in a transaction valued at approximately $7.3 billion, significantly expanding its midstream crude oil infrastructure.

Strategic expansion into deepwater frontiers is driving growth in the subsea pipeline sector. As onshore reserves mature, energy majors are directing capital toward prolific offshore basins, necessitating advanced flowlines capable of withstanding extreme pressure. This shift mandates heavy investment in complex subsea architecture to tie back extraction sites to floating production vessels. This frontier development is evident in South America. According to ExxonMobil, April 2024, in the 'ExxonMobil announces final investment decision for Whiptail development' press release, the corporation committed $12.7 billion to its sixth offshore project in Guyana, which includes extensive subsea infrastructure to support increased production capacity.

Segmental Insights

The Offshore Pipeline segment represents the fastest-growing component of the global crude oil pipeline market. This accelerated growth is principally attributed to the depletion of accessible onshore reserves, which has necessitated a strategic shift toward deep-water and ultra-deep-water exploration projects. As energy companies expand operations into these remote marine environments, the demand for specialized subsea pipelines to transport extracted crude oil to onshore terminals has increased significantly. This trend is further supported by improved subsea engineering capabilities that enhance the viability of long-distance offshore transport, thereby stimulating substantial investment in marine pipeline infrastructure.

Regional Insights

Asia Pacific stands as the leading region in the Global Crude Oil Pipeline Market, driven by rapid industrialization and escalating energy needs in major economies such as China and India. The region's expanding refining capacity necessitates robust infrastructure to efficiently transport crude oil from import terminals and production fields to processing facilities. Furthermore, national strategies focusing on energy security are accelerating investments in pipeline network development. This sustained commitment to infrastructure expansion underscores the region's dominance in meeting the growing demand for petroleum products.

Recent Developments

• In October 2024, Shell Pipeline Company LP reached a Final Investment Decision for the construction of the Rome Pipeline in the U.S. Gulf of Mexico. Concurrently, the company entered into a commercial agreement with BP to transport crude oil from the Kaskida deepwater project through this new infrastructure. The pipeline will connect an existing offshore hub to facilities on the Louisiana coast, providing essential transport capacity for new production in the Green Canyon and Keathley Canyon areas. This collaboration leverages shared infrastructure to ensure efficient market access for significant new offshore oil discoveries.
• In August 2024, Enbridge Inc. announced the sanctioning of a capacity expansion for its Gray Oak Pipeline, which transports crude oil from the Permian Basin to the U.S. Gulf Coast. Following a successful open season that demonstrated strong shipper demand, the company approved plans to increase the pipeline's throughput by approximately 120,000 barrels per day. This project aims to support rising production levels in West Texas and maximize export volumes through the Ingleside Energy Center. The expansion underscores the company's strategy to optimize existing assets and enhance egress options for North American energy producers.
• In May 2024, the West African nation of Niger officially commenced commercial crude oil exports through a newly commissioned pipeline connecting the Agadem oilfield to the port of Seme in Benin. Developed in collaboration with the China National Petroleum Corporation (CNPC), the 1,950-kilometer infrastructure project represents a major breakthrough for the region, transforming Niger into a significant international oil exporter. Despite previous diplomatic delays and border challenges, the system successfully began transporting crude to the Atlantic coast. This launch allows for the monetization of landlocked reserves and highlights the growing energy cooperation between the involved governments and their corporate partner.
• In May 2024, Trans Mountain Corporation announced the start of commercial operations for its expanded pipeline system in Canada, marking the completion of a multi-year infrastructure project. The expansion, which required an investment of approximately C$34 billion, nearly tripled the capacity of the network to 890,000 barrels per day. By running a second line parallel to the existing infrastructure, the company significantly increased the flow of crude oil from Alberta to the Pacific coast for export. This development addressed long-standing bottlenecks in the region, providing Canadian producers with critical access to global markets and diversifying export routes.

Key Market Players

• Public Joint Stock Company Gazprom
• Kinder Morgan
• China Petroleum & Chemical Corporation
• China National Petroleum Corporation
• Transneft
• Enbridge
• TC Energy
• Energy Transfer

By Application	By Region
Onshore Pipeline Offshore Pipeline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Crude oil pipeline Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Crude oil pipeline Market, By Application:

• Onshore Pipeline
• Offshore Pipeline

• Crude oil pipeline Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE