Posted on: 12. 16. 21
The oil and gas or O&G industry has experienced dynamic moves from 2020 and into 2021. This year, the industry saw oil prices rise from the lowest numbers in decades. There was a steady increase in demand as production tried to keep up. As 2022 comes around, oil production facilities are looking to a brighter future. Learn more about O&G predictions right now with a look at the top 5 outlooks.
1. Global Oil Inventories Will Increase in 2022
During the early months of the pandemic, oil and gas industry facilities shut down altogether. As lockdowns ended and vaccines arrived, more people returned to work and produced those oil barrels. There’s no indication that global lockdowns will become the norm again, which means that business can resume as normal.
A key prediction for 2022 is ample inventory. OPEC countries are producing oil at a rapid pace now. Demand for oil is easing just a bit too. This balancing act allows both oil and natural gas production facilities to keep up with inventory. Countries must work together in order to make this balance possible.
2. Higher Oil Prices can Benefit the Transition to Greener Practices
A fascinating industry alternative comes out of high oil prices. When O&G industries have ample funds from high prices, they can invest in greener practices. These options, such as carbon capture, utilization, and storage or CCUS, may not be explored otherwise without the high oil prices. They’re seen as riskier investments in more uncertain times. Companies use the extra funds in order to build up alternative options that can become the norm in the near future.
With oil prices set to stay above $60 per barrel in 2022, funds will definitely be available for greener practices and exploring measures.
3. ESG Goals Will Play a Larger Role in O&G M&A
The world is a different place than it was 20 years ago. Corporations are looking to improve their ESG or environmental, social, and governance images. Investing exclusively in oil has its controversies even today. As a solution, the O&G industry must look at mergers and acquisitions in a new light.
The changing landscape offers an eclectic array of opportunities, such as mixing green practices with traditional oil business. Corporate executives will think outside of the box in order to move companies ahead. Partnering for a greener tomorrow will only improve the quality of life across the globe as more people demand energy from various sources.
4. Gas Prices Could Double
Gasoline prices are always a concern in the O&G industry. They’re directly impacted by barrel pricing. Current predictions show that gas prices will rise through 2022 and 2023. There are multiple factors that impact this cost too. OPEC countries are constantly shifting production and spare-oil supplies, for example. Shipping across the globe continues to expand, which leads to higher demand for fuel and higher prices.
5. Greener Approaches will Create More Industry Jobs All-Around
It’s true that the 2020 downturn impacted the human side of the O&G industry. Employees were laid off, and not everyone has returned. Although there are certain jobs available, people remain wary about this industry.
As greener approaches arise with higher oil prices, these potential employees have a chance at joining the workforce again. However, they have even more opportunities in this ever-changing industry. They aren’t just working for the oil and gas industry. Employees can learn new skills that apply to those greener approaches. Overall, the industry can expand and grow as more people rely on these jobs for their livelihoods.
Stay Updated on the Latest Oil and Gas News With Pro-Gas, LLC
Oil production facilities thrive with a combination of modern technology, clever employees, and optimistic outlooks. 2022 will undoubtedly be a busy time as demand and production rise to meet the challenges. Trust in oil and gas equipment from Pro-Gas Services, LLC because we can help you achieve those environmental and production goals.
Contact us today to learn more about how our oil and gas services can improve your facility in the new year.
