Geopolitics and the energy transition are the most pressing issues for the oil and gas industry in 2023, according to data and analytics firm GlobalData.
In a statement sent to Rigzone on Thursday, GlobalData noted that geopolitics has become a key macroeconomic issue for the oil and gas industry since the start of the Ukraine conflict, adding that oil companies and gas will continue to pursue “newer supporting industry themes.” the energy transition towards zero emission technologies”.
The statement highlights that a new report from the company has identified 20 “highlight issues” affecting the oil and gas sector this year. The report revealed that artificial intelligence, blockchain, cloud computing, cybersecurity, the Internet of Things, robotics and the metaverse will be “the disruptive technology themes that will impact the industry,” highlight GlobalData in the press release.
“The current geopolitical conflict in Eastern Europe is deeply affecting the global oil and gas industry and reshaping its supply chains,” Ravindra Puranik, oil and gas analyst at GlobalData, said in a statement company
“In this environment, industry participants need to detect scenarios that could decrease their profitability or open up new market avenues,” Puranik added.
“The ongoing transition to clean energy sources will also weigh heavily on oil and gas players. Issues such as renewable energy and electric vehicles are major disruptors for the industry, while CCS and low hydrogen in carbon will create new opportunities for oil and gas players in the coming years,” continued Puranik.
The GlobalData analyst went on to note that technology issues will continue to shape operational capabilities in this decade.
“Timely and methodical investments in technology issues could provide competitive advantages for oil and gas players,” Puranik said.
In its report, GlobalData classified its top 20 themes for 2023 into four categories, including industry, technology, ESG and macroeconomics. The report highlighted several “key players” including BP, Shell, Equinor, ExxonMobil, Eni, Chevron, TotalEnergies and Saudi Aramco.
Renewable energy
In a separate statement sent to Rigzone last month, GlobalData noted that oil and gas players have committed to “considerable investments” in the renewable energy market to improve their share in the coming years.
The statement highlighted that oil and gas companies had just over one percent of total renewable energy capacity installed globally in 2022 and highlighted that renewable energy generation in worldwide to grow at a compound annual growth rate of 6.9 percent between 2022 and 2030.
“Leading oil and gas companies are expanding their exposure to renewable energy through increased investments as international bodies, such as the United Nations, have highlighted the need to mitigate carbon emissions,” said Puranik in a statement from the company at the time.
“Going forward, the oil and gas industry will increase its adoption of zero-carbon sources, with alternatives such as solar and wind power becoming increasingly popular,” Puranik added.
“Oil and gas leaders are increasingly positioning themselves as providers of renewable energy and renewable fuels. Solar and wind projects have comparatively higher growth potential and are also witnessing falling costs of project. This makes them ideal investments for oil and gas companies in their energy transition,” Puranik added.
2023 Oil and gas issues
In January this year, Matthew Bey, senior global analyst at risk intelligence firm RANE, told Rigzone that the impact of Western sanctions and the G-7 price cap on oil Russian will be the main issue for the oil and gas sector in 2023.
Micah Smith, senior partner and global oil and gas practice leader at McKinsey & Company, told Rigzone at the time that one word that will define the oil and gas industry in 2023 is “and.”
“As the industry continues to adapt to a challenging new reality, the imperative will be to strike the balance of clean, affordable and abundant, secure energy,” Smith told Rigzone in January.
In a report outlining key oil and gas themes for 2023 released late last year, analysts at Fitch Solutions Country Risk & Industry Research stated that in 2023, continued supply growth and weaker demand growth will ease tight markets and easing some of the price pressures that pushed energy prices higher in 2022.
To contact the author, please send an email andreas.exarcheas@rigzone.com
