Energy, Automobile, EV, Renewable News | Oil and Gas Sector Strategies for Low-Carbon Fuels, 2024-2035 Research Report

Oil and Gas Sector Strategies for Low-Carbon Fuels, 2024-2035 Research Report –

November 22, 2024

DUBLIN–(BUSINESS WIRE)–The “Oil and Gas Sector Strategies for Low-Carbon Fuels” report has been added to ResearchAndMarkets.com’s offering.

SAFs will experience the strongest growth, with production increasing at a CAGR of 44% between 2020 and 2035 and, as a result, represent a promising area of development for the oil and gas industry.

Meanwhile, renewable diesel production will increase at a smaller CAGR of 9% across the same time frame, as some of its capacity will be diverted to SAFs. RD may also face oversupply challenges in the next decade, due to a predicted decrease in its demand. Lastly, production challenges will see synthetic fuels as the renewable fuel picked the least by oil and gas companies in the run-up to 2030.

The oil and gas industry is facing pressures from both governments and investors to decarbonize and diversify its products. Low-carbon fuels such as renewable diesel, SAFs, and synthetic fuels offer a route to decarbonization that allows the industry to continue providing products and services to its existing consumer industries, while diversifying its assets and decreasing the risk of its infrastructure becoming obsolete.

The oil and gas industry currently faces numerous challenges, but the pressure to decarbonize and diversify its products is arguably the largest. This is due to climate concerns, as well as increasing carbon tax imposed by governments, which threatens oil and gas companies’ profits. This pressure also comes from investors, who are concerned with the long-term profitability of the industry. In fact, the World Economic Forum forecasts oil demand to peak between 2030 and 2035.

Low-carbon fuels such as renewable diesel, SAFs, and synthetic fuels offer a route to decarbonization that allows the industry to continue providing products and services to its existing consumer industries, while diversifying its assets and decreasing the risk of its infrastructure becoming obsolete.

There are a number of strategies that oil and gas players are exploring to branch into the low carbon fuels market. One pathway includes producing renewable diesel and SAFs through coprocessing or the conversion of existing refineries by repurposing existing equipment. Another pathway includes long-term investments into renewable standalone refineries, which require greater upfront capital but can scale production to far higher capacities than co-processing and conversion refineries.

Renewable standalone projects are expected to contribute the bulk of the production capacity for renewable diesel and SAFs, accounting for 64% of the overall renewable refinery capacity in 2030. Meanwhile, oil and gas players will need to engage with hydrogen suppliers or invest in their own hydrogen production facilities to produce synthetic fuels.

The production of each of these low-carbon fuels is expected to increase, but all come with their own set of challenges, namely that they are currently not cost-competitive compared to conventional fuels. A surge in fossil fuel demand in recent years has also led oil and gas companies to gain more confidence surrounding the industry’s longevity, leading to a recent slowdown in low-carbon fuel investments.

Key Highlights

Capacities for all three types of renewable refineries (crude oil refinery conversion, coprocessing and renewable standalone) are forecast to keep increasing through to 2030.
Crude refinery conversion and crude refinery co-processing capacities are both set to grow at a CAGR of 14% between 2024 and 2030.
Renewable standalone capacity is growing at the highest rate, with a CAGR of 30% between 2024 and 2030.
For all three types of refineries, between 2024 and 2030, a shift can be witnessed where capacity is increasingly being devoted to SAFs as opposed to RD.
RD production and consumption are both set to grow at a CAGR of 12% and 12.5%, respectively, between 2020 and 2032, where they are set to reach a peak.
Global SAF production and consumption are both set to grow at a CAGR of 44% between 2020 and 2035.
Synthetic fuel production from low-carbon hydrogen is set to keep growing, with a positive CAGR of 58% between 2025 and 2030, with a spike in capacity in 2030 (over 10 mtpa).

Scope

Oil and gas sector strategies for low-carbon fuels;
Legislative framework for biofuels, with specific focus on RD and SAF;
Sector strategies for transitioning into renewable fuels, including refinery retrofitting;
Crude oil refinery conversion and coprocessing vs renewable standalone
Renewable diesel: market outlook and leaders
SAFs: market outlook and leaders
Synthetic fuels: market outlook and leaders

Key Topics Covered:

Executive summary
Oil and gas sector strategies for low-carbon fuels
Legislative framework for biofuels
Sector strategies for transitioning into renewable fuels
Crude oil refinery conversion and coprocessing vs renewable standalone
Renewable diesel: market outlook and leaders
SAFs: market outlook and leaders
Synthetic fuels: market outlook and leaders
Key takeaways

Companies Featured

Neste Corp
Marathon Petroleum Corp
Chevron Corp
Eni SpA
Valero
BP plc
China Petroleum and Chemical Corporation (Sinopec)
Phillips 66
Canadian Natural Resources
GAIL (India)
Enel SpA
Repsol SA
HF Sinclair Corp
Petroleo Brasileiro SA
Compania Espanola de Petroleos SAU
Calumet Inc
PBF Energy Inc
TotalEnergies SE
CVR Energy Inc
ExxonMobil Corp
Global Clean Energy Holdings Inc
World Energy LLC
PBF Energy Inc
Corral Petroleum Holdings AB
PT Petramina (Persero)
Darling Ingredients Inc
Beijing Haixin Energy Technology Co Ltd
Henan Junheng Industrial Group Biotechnology Co Ltd
Seabord Energy
ECO Biochemical Technology Co Ltd
Shijiangzhuang Changyou Bioenergy Co Ltd
Crimson Renewable Energy LLC
Azure Sustainable Fuels Corp
Gevo Inc
DG Fuels LLC
Summit Agricultural Group
AGT Food and Ingredients Inc
Federated Co-operatives Ltd
Steamboat Fuels LLC
Evolve Transition Infrastructure LP
Hobo Renewable Diesel LLC
Parkland Corp
Ecovyst Inc
Overseas Shipholding Group Inc
Clean Energy Fuels Corp
Carnarvon Energy Ltd
Suncor Energy Inc
Kinder Morgan Inc
Green Plains Inc
Global Partners LP
Calumet Specialty Products Partners LP
Dalek US Holdings Inc
Imperial Oil Ltd
Acelen (Brazil)
Henan Junheng Industrial Group Biotechnology Co Ltd
Oriental Energy Co Ltd
World Kinect Corp
Green Plains Inc
Johnson Matthey Plc
Ecovyst Inc
Calumet Specialty Products Partners LP
Worley Ltd
General Electric Co
Sasol Ltd
Airbus SE
Rolls-Royce Plc
Viva Energy Group Ltd
Puma Energy Holdings
OMV AG
Shell Plc
Mitsui & Co Ltd
European Energy AS
Yara International AS
Skive GreenLab Biogas ApS
Intercontinental Energy Corp
CWP Global
Climate Impact Corp
HIF Global
Aqua Aerem Pty Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/212lj4

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470

For U.S./ CAN Toll Free Call 1-800-526-8630

For GMT Office Hours Call +353-1-416-8900