The oil and gas industry is experiencing significant changes due to several trends that are expected to continue in 2023. One of the main drivers of these changes is the tight supply of crude oil. With limited supply around the world, investment banks and energy consultancies are forecasting higher future prices for crude oil. This trend is expected to continue throughout the year, with oil demand surpassing supply by the end of 2023.
Another trend is the increasing investment in the oil and gas industry as a result of inflation. The International Energy Agency has predicted that this year's oil demand will establish a new record, further driving up prices.
To reduce their carbon footprint, the industry is diversifying towards low-carbon energy. Major companies like Chevron and Exxon have declared that their low-carbon industry may someday displace oil and gas as a source of revenue. This trend is especially true for the United States, where the industry is under pressure to reduce its carbon emissions.
Finally, natural gas is making a comeback as an alternative energy source. The development of gas resources in Africa is gaining growing encouragement and assistance as an additional alternative energy source for Europe. The industry is expected to continue to evolve in response to these trends, and companies will need to adapt to stay ahead of the curve.
Source: Energy Capital Power