The oil and gas industry acts as a lifeline for several other
industries not only because of its widespread uses but also because any
fluctuation in this market has global and far reaching effects. According to
the study, 'Oil & Gas
Global Industry Guide 2013-2022’, the outlook for the global
independent oil and gas Exploration and Production (E&P) sector will remain
positive for some time.
Experts today fear that after several years of oversupply,
the oil and gas industry could very well be moving towards a supply crunch
despite a boost up in US oil production. Fortunately these incidents have not
occurred as per the predictions of the International Energy Agency (IEA) which
estimated a supply crunch earlier than the current expectations. Still the
risks are looming as the CEOs of Total, Eni and Saudi Aramco have warned of
crisis at the end of the decade. There
has been a growing oil demand and investments in many major projects have not
yielded desired results which leads to the conclusion that there could be less
potential supply. Oil and gas companies are trying to increase their production
and develop proper business strategies to deal with the risks.
One way to tackle these risks is to find opportunities
abroad. The Asia-Pacific region is seen as a profitable haven for companies
looking for secure investments. This region is growing constantly in its oil
and gas disciplines. Estimates reveal that this region will account for nearly
the entire increase in global demand till 2040. Its contributions are also
expected to grow as by 2035 the region is expected to contribute more than
one-third of the total global energy production. Demand for oil and gas across China,
India and Southeast Asia and growing LNG demand in Japan and South Korea is
expected to increase subsea activities over the next five years. Australia and
Malaysia will also contribute to the growing subsea demand.
Europe too is a flourishing sector when considered globally.
Fossil fuels like oil, gas and coal account for three-fourth of the total
energy demand in EU. Naturally, the EU needs to regulate this demand and hence,
EU countries control the fossil fuel reserves through licensing the exploitation
of these reserves. In order to ensure that these licenses are issued in a fair
and transparent manner, national governments are obliged to follow a common set
of rules laid out in the EU’s Prospection, Exploration, and Production of
Hydrocarbon Directive. This system appears to work as the output from EU in
this respect is considerably positive. The EU is the world’s second largest
producer of petroleum products.
The oil and gas industry has recently raised an interesting
scenario. On one hand there is a growing concern regarding the slumping oil
supply and rising demand while the other side shows prosperous oil and gas
developments led by the Asia-Pacific region. These perplexing conditions
expected in the future cement the fact that the uncertainty involved in this
industry can go in either direction. However, stable producers like the US,
Saudi Arabia and Russia which are respectively the largest oil producers
globally are seen as safe destinations in times of crisis.
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Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
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