Did you know that America made over 15.3 million barrels of oil every day in 2018? That means that the United States was the #1 producer of oil in the entire world last year.
How can the oil industry keep up with such a massive supply and demand? Find out what oil and gas industry trends are going to be hot in 2020 (and how you can get in on them).
Oil Energy in 2018
Before we can predict the oil and gas trends of 2020, we’ve got to take a look back at oil energy in 2018. That way, we can assess how well the oil industry did in 2019 to see how next year will be impacted.
If there’s one thing we know for sure, it’s that the oil industry is constantly changing. Prices are constantly shifting and companies are always adapting to the energy market.
Luckily, people who invest in the chemical industry have seen a positive growth margin over the past couple of years. So, it might be a good idea to keep your eyes out for a potential slowdown in the future.
Here’s some good news: the economic downturn of the oil and gas industries in 2014 is totally a thing of the past now!
In fact, the oil markets have recovered exceptionally well, especially in the Permian Basin and Canada. How can we explain this?
Basically, a few things contributed to the recovery of the oil and gas sector, including:
- The successful treaty between the non-OPEC and OPEC countries.
- Less oil production from competitive markets.
- Strong demand for oil across the globe.
Fortunately, the natural gas liquid industry saw positive growth in 2018 as well. Why? Because the Permian Basin manufactured an extra two million barrels per day last year.
What’s the real deal about the natural gas sector in 2018?
Basically, the natural gas sector flatlined in 2018. That means that there wasn’t any significant gains or losses in this industry last year.
But what about the oil and gas industry in 2019?
Oil Explorations in 2019
You might be wondering: how successful has the oil industry been in 2019? We’re glad that you asked.
According to the previously linked survey by the audit company Deloitte, there is hope for a full recovery for the oil and gas sector this year.
Surprisingly, the market seems to agree with Deloitte’s assessment.
That means that there’s a huge turnaround in terms of financial growth, gas prices, and investment returns for the oil industry right now.
With the tremendous amount of global growth in the oil and gas sector, there are only a few small risks presented from other countries that export oil.
So, is this the return of the good old days for the oil industry?
When you take a look at the big picture, it seems that we’re in a pretty healthy oil and gas economy at the moment.
How do we know? There are several factors that point to an overall upswing, such as:
- Increased employment opportunities for American citizens.
- Higher business investments in the oil and gas industry.
- Stabilized prices throughout the year so far.
Not only that, but there’s also been an increase of funds for the gas industry due to tax cuts and improved government spending too.
This could mean that the oil market will continue to grow in 2020, despite the current taxes on the sector.
How can the oil industry continue to flourish after this economic boost?
The answer is: we could definitely be facing a potential readjustment period as consumer demand expands.
Let us break it down for you: with the rising price of consumer goods and the increased cost of doing business in the steel industry, there could be a disruption in future supply chains.
What about oil and gas companies in 2020?
Oil and Gas Companies in 2020
Here’s the deal: the biggest oil and gas trend to keep a lookout for is profitable returns for investors in 2020.
How do we know this?
Because of the exceptional recovery of the price of consumer goods and cash flows in 2018. That being said, the only thing that investors have to worry about is how profitable their returns will be.
Despite the fact that the oil industry was in a gigantic downturn several years ago, there have been enormous increases in capital high-grading and cost containment recently. Not to mention a rise in the efficiency of operations too.
Will this positive upswing in the gas industry continue next year?
The truth? There are still some prices are destined to increase over the next year. Why? To help to bring back service sector margins, as well as cover the expanding costs of materials.
In a nutshell: we have to remember the recent economic downturn of the oil and gas industry.
Why is this so important? So that we can continue to improve the current technology and operation processes for years to come.
What’s the bottom line?
If you’re a producer of oil and gas, then you should seek smart investors and use the latest technology to create the greatest financial returns!
Additional 2020 Oil and Gas Trends
Looking for more oil and gas trends in 2020? Look no further! You’ve come to the right place.
You should also expect to see:
- A rise in the importance of infrastructure in the oil industry.
- A major comeback of the natural gas sector.
- A move towards sustainability in the oil, gas, and chemical markets.
When it comes to the oil industry of 2020, don’t be surprised when there’s a general rise in the importance of infrastructure.
That means that bigger process facilities, underground pipelines, and storage building will become way more vital to the industry’s value chain.
Especially since Canada and the Permian Basian have experienced slowdowns in oil production due to pipeline expansion. The result? The recent increase in the price of crude oil.
Another 2020 oil market trend that you should be aware of is the major comeback of the natural gas sector. That’s because natural gas is so affordable in North America due to its proximity to the Permian and Marcellus Basins.
Get ready to see natural gas become the most valuable resource for low-carbon power generators next year.
Finally, prepare to see a meteoric move towards sustainability in the oil, gas, and chemical markets in 2020. Even though the oil market is not new to the sustainability industry, it has been preparing to implement a more environmental agenda.
This is good news for environmentalist everywhere, as the giants of the oil and gas industries are beginning to invest in renewable, low carbon energy companies.
That means that the oil industry is planning to reduce its carbon footprint in 2020. Sounds good to us!
Proceed with Caution in 2020
We can’t emphasize this enough: oil and gas companies in USA markets should proceed with caution in 2020.
There are a couple of factors that can contribute to your company’s success in the oil market next year, including:
- Being more aware of your business’ operations and capital goals.
- Increased advertising to consumers and community.
- Technological advancements in the oil, gas, and chemical industry.
How can you actually use this?
When it comes to the oil markets of 2020, it doesn’t hurt to be more aware of your business’ operations and capital goals. Why? Because it can be the key to success across the chemical, oil, and gas industries.
As if that wasn’t enough, you should also be critical of the shifting markets as well. That’s because investors want to see a significant return on their investment over time. Plus, shareholders want to see capital gains on top of volume growth too.
Now: it’s never too late to increase advertising to consumers and community members as well. Why is this so important?
The point: The more that you use outside marketing tactics to draw in revenue, the more that your business will thrive in 2020.
Want another word of advice?
Stay up-to-date on the latest technological advancements in the oil, gas, and chemical industry.
Why does this matter?
Because the oil and gas sector is world-renowned tor its technological innovation. Nowadays, there’s an incredible opportunity for your company to embrace cutting-edge technology before your competitors do.
How can you beat that?
Keep Up with Oil and Gas Industry Trends
Are you someone who needs to keep up with oil and gas industry trends?
Now that you have a sneak peek into the hottest oil and gas industry fads of 2020, you can figure out what your company needs to do to get in on the craze next year.
Still have questions? Give us a call to schedule a consultation!