Is It Green Yet? What Is the Future of the Oil & Gas Industry?
What Is Happening In The Oil & Gas Industry? What Will The Future Hold And What Will The Landscape Of This Industry Look Like?
The oil and gas industry is no stranger to market fluctuations and economic turbulence. Whenever there are recessions or political happenings, they often impact the industry.
2020 has brought a global pandemic, national lockdowns, political turbulence, and a host of other events that have affected oil and gas.
So what does the future now hold for the industry? How will it evolve after 2020 and into the future?
In times of instability, coiled tubing and other materials used in oil and gas production also need to continue advancing to stay relevant.
Keep reading for a full breakdown of what the future may hold for oil and gas.
How COVID-19 Has Affected The Oil And Gas Industry
2020 has caused many industries around the world to suffer, and the oil and gas industry is no exception.
Due to lockdowns and fears of viral transmission, travel rates have decreased in the past several months. People around the world have canceled their vacations, choosing instead to stay home.
Countries ordered their factories to shut down, which limited trade and material transportation. Cargo ships have therefore stopped moving materials, with many stuck sitting in ports.
These circumstances, along with preexisting tension from oil suppliers, have created a difficult situation for the oil and gas industry.
In March, the Organization of the Petroleum Exporting Countries (OPEC) predicted that the demand for oil would be 6.8 million barrels less per day than in previous years.
Now some regions in countries are beginning to reopen, leaving many to hope that the most difficult time period has already passed. But other challenges still loom in the future.
Is Remote Work Possible?
As with other industries across the world, COVID-19 has forced the oil and gas industry to switch to remote work.
Oil and gas rely on manual labor, making the transition difficult to put in place.
Yet some oil and gas companies, such as the Portuguese company Galp, did not struggle to adapt. Galp managed to create a virtual data platform, where its employees could remotely empower the company’s infrastructure.
Other companies in different industries also transitioned to hybrid and remote work models. Twitter announced that its employees can work remotely permanently, as long as their job doesn’t need them to work in-person.
These sorts of changes further affect the oil and gas industry, as fewer employees will be using gas to shuttle from home to work and business meetings.
To prevent further economic decline, the oil and gas industry will have to act soon. Automation and digitization may be necessary solutions that the industry adapts if it doesn’t want to become obsolete.
What Is Coiled Tubing?
Coiled tubing is used commonly in the oil and gas industry, but is something with which the average person may not be familiar. So what is it?
Essentially, coiled tubing is an electrically welded tube made with a seam. Industries use it in offshore and onshore gas and oil fields. It is capable of extending the life of a well through cleaning and completion facilities.
Americans developed coiled tubing as it’s known today in the 1950s. It proved to be an efficient and effective method to ensure well intervention. As well intervention helps ensure that the well is functioning as it should, coiled tubing is therefore important.
There is a growing demand for well intervention, which could see the demand for coiled tubing increasing as well. An increase in exploration and production activities can also help increase coiled tubing market growth.
Yet like other traditional industries, it is also expensive, inflexible, and requires manual labor. As the world transitions to a more hybrid and virtual workforce, coiled tubing may face resistance.
Webco Industries is one example of a company that manufactures different types of coiled tubing and has been forced to adjust their strategies in response to COVID-19.
What Does the Future Hold?
Although the oil and gas industry should soon bounce back from the economic slump the world experienced at the start of 2020, the future is still uncertain.
In order for the industry to rebound, the movement of people must first become common again. This requires the travel, retail, and manufacturing industries to reopen completely. The return back to the levels of consumer confidence that existed before will take time.
Yet the push for sustainability is also becoming more and more pronounced. In response, traditional industries have needed to change.
Some industry experts believe that after the COVID-19 slump, the industry will never recover. Although the push towards renewable energy has seemed slow at times, 2020 may have accelerated it. Oil demand may never be as it was, and green energy demand will instead peak sooner than expected.
On the other hand, other experts hold a different view. They believe that world leaders are too busy responding to oil prices and the global depression. This may cause them to invest time and money in response, with climate initiative efforts being pushed to the side in the process.
An Uncertain Fate
The oil and gas industry has always been subject to fluctuations, and 2020 has been particularly challenging for it. Some companies have been able to adapt to the new working circumstances, while others may soon fall behind.
Coiled tubing is an essential component in the industry, and manufactures will also need to change to figure out how to not become outdated.
What do you think the future holds for the oil and gas industry? Will it be able to adapt, or will it get left in the dust on account of COVID-19 and greater demand for sustainability? Let us know!
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