New industry trends are making the whole oil and gas industry smarter, more efficient, and safer. Companies are looking to solve complex engineering challenges under the surface, automate their processes, and digitalize their platforms.
With half of 2022 gone by, we are already seeing some significant trends shaping the oil and gas industry as there’s a growing dissonance among investors, consumers, and governments. There are all kinds of opinions about switching to more sustainable and eco-friendly solutions but not enough concrete strategies to achieve this.
At the same time, others are suggesting investing in oil and improving the industry further to lower costs and deliver products more efficiently.
1. Growing demand for artificial lift systems
Research by Transparency Market Research has shown a 5% CAGR increase in the artificial lift systems market from 2019 to 2027. The main reason for this trend is the aging wells and fields. The demand will only grow as the fields continue to age and their output goes down.
The demand for the artificial lift for oil and gas in the Middle East is particularly affected since most wells and fields there have been exploited for a long time. These systems are deployed in old fields to increase production and improve gas and oil recovery rate.
Upstream oil and gas investment growth is also expected to drive this growth and help discover wells and fields for exploiting reserves. Almost 90% of fields currently need artificial systems for positive production.
2. Visualization and 3D modeling
Visualizations and quality 3D models allow companies to create realistic imagery of O&G equipment and subsurface reservoirs. Combined with production data over time, 3D modeling simulated injection and production phases throughout the reservoir’s lifecycle.
That improves reservoir safety overall through accurate risk prediction. Using this data, engineers can optimize operations and production planning. At the same time, visualization and 3D modeling reduce risks and lower costs overall, leading to better performance of your assets.
3. Cleaner energy
The whole industry is under a lot of pressure due to climate and political changes. The oil and gas industry has always been marked as the “bad guy” when the prices are high and ignored when affordable.
Governments worldwide are trying to decarbonize the energy industry, and even though all the methods are still unknown, these actions will undoubtedly cost a lot of money. There’s a visible growth of electric vehicles and renewable energy sources, but the demand for gas and oil isn’t slowing down.
It also presents opportunities for smaller companies to start with new approaches and make their exploitation more eco-friendly. At the same time, the current players have the opportunities to optimize their processes and reduce costs making them more competitive.
4. The growing need for affordable and reliable energy
The war in Ukraine has had a global impact in the world. Apart from political and socio-economical shifts, the whole oil and gas landscape has changed. Countries worldwide have realized how fragile this system can be and how governments still control this vital asset.
Many western countries directly dependent on Russian oil and gas have suffered because of the ongoing conflict and need alternative solutions for their energy problems. The future will require more independent and stable energy sources that people can count on.
The global oil and gas market prices depend on countries and their relationships. In other words, this might be the moment when companies should look to segregate themselves outside of politics to create reliable and affordable products for consumers worldwide.
5. Automation and robotics
Oil and gas professionals often work in extremely rugged and complex environments involving many risk factors. The whole industry is using automation and robotics solutions to address these risks, improve operation speeds, and provide better workplace safety.
Some of the traditionally dangerous tasks, including surveying and inspection, are done by robots, while automation is used in refineries and oil rigs. Robotics and automation improve operational speeds, reduce injuries, and lower costs.
Companies can use automation solutions to improve interactions between resolution, diagnosis, and detection. Various processing, storage, transportation, and production solutions boost safety, productivity, and operations efficiency.
Even though the world is moving to more sustainable solutions, there are no signs of any tectonic shifts in the energy sector. Oil and gas are still the most affordable and most effective options. As the industry continues to improve, it will be challenging to find alternatives that can take the role of this industry while giving competitive prices.