In the few past years, rapid modernization and globalization have vigorously affected the Oil and Gas Industries. The production of it exceeds global demand. In simpler words, it means that the market has vastly declined. Modern Technology has led the USA to lead in the race of producing Oil and Gas. Countries like Saudi Arabia and Russia are implementing strategies to take back control from the US. The whole Oil and Gas Industry shattered because of the novel virus. The employees were asked to leave the offices. A considerable amount of time is required to recover the whole Oil and Gas industry. The industries in The United States of America aren’t able to clear off their stock.
On the other hand, we don’t find any necessary need to burn oil and diesel to generate electricity. It is because of the other eco-friendlier alternatives.
The fuels in automobiles make our environment contaminated. The future of this industry isn’t that good. The main reason being the environmental damage which it causes. The Saudis and Russians signed a petition in order to reduce the environmental damage. This was exactly the time when the USA captured its market shares. The Saudis and the Russians have jointly reduced their prices so as to recover their lost market shares.
Let us know about the future of the Oil and Gas Industry
The industry has always witnessed recession periods. But the pandemic made the whole industry collapse. It is due to the demand and supply forces that the oil prices have crumbled. Supply chains have been tremendously affected. The requirements for combating the virus has reduced the consumption of Oil and Gas. The virus has taken the source of income from many innocent people. This is also one of the reasons as to why the Oil and Gas Industries aren’t able to clear off their stocks.
The future of oil and gas industry can said to be uncertain. This is because it really depends on the present generation to work on sustainable development. If we fail to maintain and keep safe the reserves of oil, it is not going to be found in the next generation.
The oil demand is expected to rise by 1.4 per cent per year. And the gas is expected to rise to 27 percent. We currently consume over 11 billion tonnes of oil every year globally. If this continues to go on for consumption, we’d run for no more than just 50 years. Thus, in near future, this would not last for more of the years.
So, according to the global demand, we are not acting much progressive as to the production of the oil but we can definitely work on it by trying for saving fossil fuels or at least cutting the excessive use of fossil fuels.
The prices of the oil are continuously rising up due to the excessive demand and low supply. Even the richest oil companies like Lukoil, Chevron, Royal Dutch Shell are experiencing a wide change in the prices of the oil. The changes are due to various reasons –
- Increasing demand
- Decreasing supply
- Pandemic situations
- Increasing alternatives
The alternatives of oil and gas have already come up in the economic scenario like solar energy, wind energy, geothermal energy, etc. As a result of this, the demand and the consumption of oil and gas are being affected. And related to that, the price and the sale of oil and gas are also influenced.
Conclusion for Oil and Gas Industry
Availability of alternatives is another of the main reasons why the oil and gas’s future is in real time crisis. Apart from that there’s other impacts as well like the economic impact, storage impact, and the pricing which influence the crisis of gas and oil all over the world.