Oil & Gas Industry Sector in India Petroleum, Natural Gas
It goes without saying that the trillion dollars Oil and Gas (O&G) industry is a highly volatile market. With changing times, this industry has seen a huge transformation. With new alternative resources such as shale oil and other deep-water exploration projects, the need for skilled personnel to manage these new alternatives has also increased. Let’s take a look at the future outlook of the O&G industry.
Canada, USA, Russia, Indonesia, Australia, Malaysia, and the Middle Eastern countries have been the main sources of oil supply in the world. The pricing of oil and gas varies around the world. Based on the trade agreements and the duration of the contracts, the pricing in the market is determined.
Russia and the US are the largest gas consumers in the world. Europe and Asian countries such as China, Japan, India and so on are major import markets. Some of the notable global companies in the O&G sector are BP, Shell, Mobil, Exxon etc. Over the years, the industry has seen several ups and downs. Additionally, The safety concerns and environmental impact caused by the O&G sector has led to advanced research efforts in designing better operating procedures and finding alternative resources.
The Organization of the Petroleum Exporting Countries (OPEC) has been creating policies to manage the demand and supply of oil globally. What does the future hold for the Oil and Gas industry based on the current scenario? There are several factors that have been affecting the way the oil and gas industry operates. The upstream and downstream of the petroleum industry has evolved with the social, economic, political and technological changes around the world.
Also, post the recent recession period, the oil and gas industry has been slowly picking up. As per industry reports, the oil price downturn is expected to impact the way the industry allocates capital and workforce in the long-term.
Oil & Gas Future Growth
According to forecasts by major petroleum companies, there will be a huge demand for oil and gas in the next decade. Due to environmental concerns, there is a growing demand for natural gas and other alternative resources such as non-fossil methane, biofuels, etc. The natural gas prices will depend on the proximity of the source to the consumer markets and energy requirements of those markets.
The oil and gas industry has also been responsible for adding to environmental issues that are signaling the bigger concern of global warming. With changing technologies, cost-efficient and environment-friendly processes for extraction of oil and gas from reserves are being developed worldwide.
Natural gas, a cleaner alternative to oil is the next booming market. It is more viable and cost-effective compared to the oil industry. Liquefied Natural Gas (LNG) is also being considered for the futuristic electric cars. Also, a global Liquefied Natural Gas (LNG) market is in the making to meet the rising demands in the O&G industry worldwide.
What does the future hold for the Oil and Gas industry in the long term? As per a leading consulting firm, the importance of oil will decline with alternative energy sources taking its place in the future. Having said that, the oil industry will continue to emerge and will be controlled by the OPEC companies that are dominating the market today. The political tension between nations may not pose as a hurdle for the growth of these oil and gas giants.
Some of the key forecasts for the Oil & Gas industry’s growth between 2030-2040 are as follows:
- As per the global oil production forecast by Monitor Deloitte, the world will experience a demand of 100 million barrels per day of oil by the year 2040.
- Production in the Natural Gas Liquefaction industry is expected to reach 70 billion cubic feet a day in 2038. Australia, Qatar, North America, and East African nations will emerge as leading LNG exporters and suppliers in the future.
- Non-conventional oils such as shale oil and tight oil will add to 50% of production in the US by 2040.
- Oil companies will expand to emerging nations such as China, India, and Brazil.
There are industry best practices and regulations to reduce the environmental hazards due to oil and gas exploration. But several potential problems continue to be reported and documented by environmental organizations from time to time.
Oil exploration in the sea affects the seabed and marine life surrounding the area. Air and water pollutants have been affecting the ecological balance in the exploration area. Industry professionals need to be aware of these environmental concerns and should be able to manage them ethically.
Operational risks such as explosions, pipe failures, environmental hazards etc. are part of the oil and gas industry. Also, safety issues in oil and gas include pressure hazards, temperature hazards, noise hazards, gravity hazards, radioactive hazards and so on. The skilled workforce with appropriate training to manage these potential hazards is the need of the O&G industry.
Any safety lapse by the oil and gas industry personnel or any action due to inadequate knowledge in critical situations can lead to catastrophic outcomes.
Sustainable initiatives are the only remedy to meet the growing demands of rising populations in the nations across the world. Clean energy sources such as solar, wind, hydroelectric power, geothermal power, etc. are being explored by nations to address the growing environmental issues and to meet the growing demand for energy while trying to preserve the resources on our planet.
Additionally, the future problem of depletion of resources and the growing demand in the industry have been encouraging the industry frontrunners to invest in research on discovering new renewable resources. Innovative processes for minimizing the environmental issues caused by the industry are also being tested. Now that you have a fair idea about what does the future hold for the Oil and Gas industry, get ready to explore the upcoming opportunities in this growing industry.
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