Oil and Gas Industry Trends
The oil and gas industry is undergoing significant changes. While the energy transition has been in motion for years, it continues to gain momentum as policymakers drive ambitious renewable energy targets and investors seek more stable returns on investment. Meanwhile, technological advances are giving rise to innovation across all facets of the industry, from exploration through production. In order to stay relevant in this rapidly changing landscape, executives need a clear understanding of what’s driving change—and how they can adapt their businesses accordingly.
Drivers of Change
The combination of technology, data, and artificial intelligence is changing the way companies operate. This can be seen in the application of software to optimize well design, which has increased recovery rates by up to 20%. More importantly, it is improving safety for workers on rigs and in remote locations.
The growth of renewable energy will continue as countries move away from fossil fuels. Renewables are growing at an annual rate of about 10%, which means there will be more demand for materials such as nickel and rare earth elements that make up wind turbine blades. Companies need to understand what’s driving this trend so they can adapt quickly enough to stay competitive while also minimizing risk across their operations.
Carbon capture utilization and storage (CCUS)
CCUS technologies capture CO2 emissions from fossil fuel-based power plants or industrial facilities before releasing them into the atmosphere; they then inject them into underground geological formations where they can be stored safely. The evolution of CCUS has made it easier than ever before to capture carbon dioxide (CO2) from industrial sources like power plants and oil refineries so they can be stored underground permanently instead of being released into the atmosphere where they would contribute to global warming concerns by increasing atmospheric CO2 levels which leads to climate change impacts such as extreme weather events and sea level rise among others
Resource nationalism refers to governments increasing their control over resources through nationalization or expropriation following political unrest or conflict over those resources. Resource nationalism is a trend that has been growing in recent years. It is an economic policy of restricting access to natural resources or other economic sectors in order to promote domestic development.
Business model pressure
In order for oil producers’ business models to remain profitable in a low-carbon world driven by renewables growth and electrification trends, they’ll need cost efficiencies through lower capital expenditures (CAPEX), improved operating efficiency using new technologies like artificial intelligence (AI) and automation systems integrated into offshore platforms.
As the landscape of business changes, you’ll want to ensure that your company is ready for what comes next. Adaptation is key—and it’s also something that has already begun happening across many industries: oil and gas companies are diversifying into clean energy, airlines are focusing on their customers rather than competition with other airlines, and even big tech companies like Google and Apple are taking a step back from their own devices
The Future Workforce
The workforce of the future is key to meeting the demands of the oil and gas industry. The oil and gas workforce of today will need to be more skilled, more diverse, and more engaged than ever before in order to meet these needs.
The most important challenge facing this workforce is building up a strong pipeline of talent. This can be achieved through training programs that allow workers to gain new skillsets while maintaining their current roles within the industry’s existing culture—allowing them to grow with their employers as they work toward an even higher level of professional achievement.
Onward was formed in 2010 to answer a calling in the Gulf Of Mexico for leadership training. Through this leadership training, we confirmed what we already knew, which is people are the core of a successful and safe business. As we supported the development of leaders and crews with strong culture and core goals through effective communication and partnership, we were asked if we could provide people for long-term business solutions. This was the start of Onward providing both personnel and direction. At Onward, we provide personnel for a variety of roles for your business that ensure you meet and exceed your needs.
What is next for Oil and Gas leaders?
The oil and gas industry is undergoing an unprecedented period of change. Digitalization and technology are transforming the way we do business, while also creating new opportunities for growth. At the same time, resource nationalism is causing many companies to shift their focus away from conventional resources towards renewable energy sources such as wind or solar power. This means that executives need to adapt their strategies accordingly in order to remain competitive in today’s changing environment. Whether this means hiring more people, lobbying for better policy at home, or adapting operations, many companies are already adjusting to these changes and must continue to do so.