What to Look Out for in the Oil and Gas Industry

During 2021, the oil and gas industry saw prices reach higher than they have in years. However, there is still some uncertainty surrounding the market and what 2022 could bring.

Below, you can find some trends that could help to shape 2022’s pathway.

High Prices Boost Transition Plans

After experiencing a negative period in 2020, oil prices have since recovered. However, there has been some suggestion that the high prices could result in a lot less discipline. What this means for the industry is that energy transition plans could be out the window.

The higher the price, the more risky investments are sought. In addition to this, green energy solutions may also be sought. This is a trend that the industry has seen in the past. When prices are high, consumers and markets look for green solutions that could save them money.

Customers Want Experience and Convenience

Many customers now want experience and convenience rather than plain old fuel. They want electric transportation and renewable fuels. In addition to this, demographics have changed. Years ago it was the baby boomers who loved everything about the gas and oil industry. They loved the bare bones, from pumping fuel out the ground, to X-Ray Diffraction, to transporting fuel across the country and using it in their vehicles.

These days, millennials and indeed, some baby boomers want more convenience than they seem to want fuel. It’s thought that in 2022, the oil and gas industries will work to incorporate convenience while expanding their range of services and products. This could be harder than previously thought as convenience isn’t always this industry’s strong point

The Retention of the Workforce

During 2020, there was a large change in the oil and gas industry. The year saw more people laid off than ever before. Since then, prices have risen, but only half of the workforce has returned. The fact that so many people lost their jobs has affected the industry’s reputation. Former employees no longer place as much trust in the industry as they used to. In addition to this, the aging workforce means that there is less available talent. This will become even more evident when the aging workforce starts to retire.

One of the best things that the oil and gas industry can do in 2022 is to commit to decarbonization. It’s this that could help to bring many people into the industry for the first time. Only time will tell.

The oil and gas industry has certainly had a rough time of it. 2020 bought with it many job losses. Confidence in the industry is not back to what it once was, even though prices are soaring. What is the future set to be like for this industry? It’s unclear. However, the introduction of green practices and goals could help it. In the meantime, those at the top need to concentrate on hiring the right people so that we can all enjoy accessing oil and gas when we need it.