Oil & Gas
The Oil & Gas industry accounts for around 7% of global GDP and provides the dominant source of fuel for modern industry and most forms of transportation.
Industry Trends & Challenges
Oil & gas companies face a number of opportunities and threats to their businesses. The companies best placed to deal with a challenge will consider it as an opportunity, whilst those poorly prepared will face the challenge as a threat.
Before the COVID-19 crisis, there were several trends that chemical companies were responding to. As the industry recovers from the pandemic some of those trends remain, and some new challenges have emerged. Those include:
- an ageing workforce
- competition from alternative sources of energy
- digitalisation of operations
- growing cybersecurity concerns
- meeting sustainability goals
- rising production costs
- securing future oil and gas supply
Fast growing technologies such as machine learning and predictive analytics are opening new possibilities for oil & gas. Companies that embrace these new technologies will become more efficient and sustainable. Looking ahead, companies are investing in leading research in converting crude oil directly to chemicals or hydrogen as a possible energy source for the future.
What is the current position of the oil & gas industry?
The oil & gas industry’s outlook in 2023 is influenced by a mix of factors. On one hand, there has been a gradual recovery in demand as global economies rebound from the COVID-19 pandemic, leading to increased energy consumption. However, the energy transition and ongoing geopolitical tensions will continue to play a vital role in shaping the sector’s prospects in 2023.
Additionally, technological advancements and cost efficiencies are transforming the industry, prompting companies to adopt innovative approaches and diversify their portfolios. Furthermore, oil prices remain volatile, making strategic adaptation to the evolving energy landscape crucial for long-term sustainability and competitiveness in the sector.
Sustainability and decarbonization will remain a key concern in 2023. Many oil & gas companies are anticipated to boost their investment in R&D capabilities and exploit developments in decarbonization and recycling technology.
The aging workforce is a big issue in oil and gas because the sector is set to see around half of its existing workforce leaving over the course of the next ten years or so. Additionally, the pandemic and ensuing oil price crash resulted in thousands of job lay-offs in the industry.
Companies need to make sure they recruit, train, and most importantly, keep their young new recruits in the industry. However, hiring new recruits in the middle of an industry wide sustainability transition will not be easy, companies will need to battle the negative reputation the industry has as an employer, with fierce competition from other industries suffering from a labour shortage for the best recruits.
- Self-paced e-learning
- Designed for customer-facing professionals
- Distinguish between the metrics used to measure various aspects of company performance
- Distinguish between upstream, midstream, and downstream activities and how these contribute to company profitability
- Identify the business implications of current sector trends and challenges
- Identify the different types of company operating in the sector
Oil & Gas Industry Insights
Cambashi Oil & Gas Industry Insights offers tactical industry intelligence updated by industry experts, that provides the latest information from across the globe:
- Tactical industry intelligence updated in real-time by industry experts
- The latest trends & challenges, business drivers, products & services, and technology
- Business strategies and initiatives
- Key players and consumer perspective
- Industry terminology and metrics
- Deeper knowledge across a variety of industry subjects
Oil & gas companies spend heavily on multi-billion dollar projects such as building or upgrading refineries or rigs and increasing use of IT systems are helping companies run these facilities more efficiently.
As with any modern business, sophisticated IT is the key to analysing the big data generated across the value chain and deciding what steps need to be taken to improve them. This is especially important in oil & gas, where huge vertically integrated companies must manage a presence in upstream and downstream areas in markets all over the world.
Prominent IT trends now and for the foreseeable future include:
- artificial intelligence
- Big data analytics
- cloud computing
- Internet of Things (IoT)
Here we can see the relative sizes of the Computer-Aided Technologies (Mechanical CAD, Mechanical CAE, CAM), PLM, BIM, and GIS software sectors in the global oil & gas market. The total is worth approximately $US 890 million annually. Note how BIM is the largest segment, highlighting the importance of structural design within the oil & gas sector.
Design/Engineering/Manufacturing Software Market Share – Oil & Gas Industry
How companies in these sectors can leverage up-to-date market intelligence and training to meet challenges and maximize opportunities. The latest research from Cambashi has revealed that, in the middle of energy transition, Oil & Gas and Chemicals companies are facing…