What Next for the Oil and Gas Industry?

The future for the oil and gas industry has changed. The growth in production to supply a largely Western-driven market and of competition between private companies for access to reserves was one of the stories for over 100 years. The oil prices have moved to a permanently high level since 2005. By producing more efficient engines, ships, vehicles and by supplying alternative fuels some industries are capturing some of the demands. Uncertain opportunities to produce unconventional gas and oil are provided by the new technologies in many countries of the world. In the traditional oil exporting countries opportunities are still provided for the private sector companies where industry is under state monopoly but these countries involve cooperation which are controlled by the state oil and gas companies.

In the Middle East oil exports, question of carrying the responsibility for the physical security finally goes to the Asian markets rather than the Europe or US. The world consumes Oil and gas supply 60% of the commercial energy, and their combustion accounted for approximately the same proportion of global CO2 emissions. Oil and gas exports are more than 17% of the value of global exports and provide more than 28% of GDP in Russia, Central Asia and members of the Organization of the Petroleum Exporting Countries (OPEC).

The world’s stock markets are invested in the gas and oil sector just over 10% of the value. What happens next in the industry will affect the consumers who depend on its products or try to avoid the environmental and social effects of using them, as well as the governments and shareholders who seek tax revenues and dividends from their activities. The industry cannot develop its strategies independently of governments. The report shows increasing and changing intervention by governments, driven by climate change policies and economic and physical security.

The oil and gas industry has always changed, and has caused changes in the societies in which it operates. The schismatic changes of the 1970s opened a new era. Those responsible both inside and outside the industry need to try to understand what is happening now and how it may affect the future, to explain their strategies clearly and to adapt to new situations as they develop. In a world where technology and environmental threats are changing industries and society so rapidly, the slowly turning super tanker is not an image that excuses inertia in oil and gas companies and those who deal with them. All who are in the industry or who are involved with it need to share clear thinking about the future.