5 Bold Predictions About The Oil Industry in 2019

Though the global demand for oil has continued to increase by an average of 1.4% annually, 2019 has shown a lower rate of consumption than expected.

There’s no doubt the oil and gas market has been volatile, especially considering the major crash of 2014. Though there has been some recovery since then, there’s no arguing that the global energy climate is changing.

Oil companies are under more pressure than ever to innovate. And to embrace renewable, sustainable energy options. But what exactly does this mean for the future of energy?

Something as big as the future of oil industry predictions on a global scale cannot be narrowed down to one certainty. There are numerous factors at play. And regardless of what happens, it won’t be happening overnight.

Sustainability and the Future of the Oil Industry

Most likely the hottest buzz word in the world right now is sustainability. And it’s no surprise considering the fact that climate change imposes a real and impending problem for the future of the earth.

It’s what’s on the tip of the tongue of environmentalists, business gurus, and politicians. But what does it really mean as it applies to energy consumption? It’s not a new concept.

Technology has been in the works to improve the sustainability of human energy consumption for some time now. And the main issues facing oil production companies is how to develop more sustainable products.

The corporations have a responsibility, but so do consumers. Educating people on how to manage their usage is just as important as staying innovative and up to date on the latest technologies available.

The more energy-conscious consumers become, the more companies will have to adapt and alter their priorities.

Changes that move companies toward renewable power and economically-friendly packaging can’t be bad, right? But what does it mean for the global economy if one of its main backbones, oil, is replaced?

Well, what are industry experts saying? Read on to learn more about the future of the oil industry with 5 future predictions based on the opinions of industry leaders.

1. Demand for Crude Oil will Slow Over the Next Decade

The increase in the global demand for oil has been steady for decades. But many experts predict that the demand will start to slow down over the next 10 years.

This will likely be due to the slow and steady shift to renewable energy options, especially with regards to transportation.

A good sense of future trends is happening in India. The country has made the announcement that all new cars sold will be electric by 2030. Electric cars will have a huge impact on the demand for oil.

In terms of energy consumption in the household and for manufacturing purposes, there are promising technological advancements made in the field of solar and wind power.

2. The Switch to Renewable Power Will Take Time

While there have been some promising technological advancements when it comes to green energy, even the most well-informed, best-intentioned environmentalists know that it will take time.

As it stands right now, the abundance of renewable resources for energy consumption is not high enough to sustain the whole world. The need for oil and gas will not disappear overnight, and it might never disappear entirely.

The best-case scenario for the wellbeing of the earth as well as the global economy is to come at it with a mixed approach. And for oil companies to continue to support the economy, they will have to adapt to new advancements.

Let’s face it: oil is a finite resource. As it stands, solar power is not. The shift toward green energy is inevitable. It’s just a matter of time.

3. Technology Is Unstoppable

At the rate technology is growing, the problems faced by green energy production are becoming more easily solved. Finding the right technology to effectively harness solar energy would be game-changing for global energy consumption.

Many technology experts agree that with the rapid advancements happening in artificial intelligence, automation, 3D printing, and robotics, sustainable energy might not be as far off as we think.

4. Expect to See More of Blockchain Technology

If you thought blockchain technology was limited to the financial sector, think again. Now more than ever, blockchain tech is becoming a highly valuable way for oil and gas companies to streamline their data processing and analytics systems.

For companies brave enough to wade the uncertain waters, blockchain capabilities can offer the competitive advantage needed to succeed in the ever-changing economic climate.

In addition to optimizing data, blockchain tech can also help companies avoid human error in accounting, claims management, scheduling, bookkeeping – you name it.

5. Smart Oilfield Tech and the Challenge of Rig Decommissioning

In terms of working on an offshore oil rig, things are rapidly changing. As equipment age and become dangerous, the biggest problem facing the oil and gas industry is how to safely decommission old rigs.

The traditional method of sinking the rigs into the ocean no longer flies due to its harmful impact on the environment. Companies have to start considering smart technology and think hard about how to innovate old systems.

Of course, the main priority of business-minded oil and gas executives is how to improve the productivity of drilling equipment while also meeting external stakeholder and political requirements.

Smart drilling technologies are being implemented in oilfields around the world, revolutionizing drilling.

This is done by combining new and innovative high-tech procedures for design, monitoring, risk management, and production with training programs to ensure workers are equipped and knowledgable in, effective communication procedures.

The Bottom Line

So, what is the future of the oil industry? Experts across sectors agree that there is a shift happening toward sustainable, green, renewable energy, but it won’t be done overnight.

The global demand for oil and gas is still high, and won’t disappear anytime soon, if ever. However, technological advancements in renewable energy and a more conscious approach to oil drilling are on the rise. It just means oil and gas tycoons will need to embrace technology and stay innovative to keep up with the changes.

Keep reading our blog for more insights.