Geopolitics and energy transition are the most pressing themes for oil and gas industry in 2023, says GlobalData
Geopolitics has become a pivotal macroeconomic theme for the oil and gas industry ever since the start of the Ukraine conflict. The fallout of this conflict is also critically impacting the supply chain theme as newer alliances are being forged. Nevertheless, oil and gas companies will continue to pursue newer industry themes that support the energy transition towards zero emission technologies, such as renewables, low-carbon hydrogen, carbon capture and storage (CCS), and electric vehicles (EV), says GlobalData, a leading data and analytics company.
GlobalData's thematic report, "Top 20 Oil & Gas Themes 2023", identifies the 20 prominent themes impacting the oil and gas industry in 2023. The report also reveals that artificial intelligence (AI), blockchain, cloud computing, cybersecurity, the Internet of Things (IoT), robotics, and the metaverse will be the disruptive tech themes impacting the industry. Besides, traditional oil and gas themes, namely liquefied natural gas (LNG), shale, and integrated refineries, are expected to enable companies to remain competitive in the energy market.
Ravindra Puranik, Oil and Gas Analyst at GlobalData, comments: "The current geopolitical conflict in Eastern Europe is deeply impacting the global oil and gas industry and reshaping its supply chains. In this environment, industry participants need to sense the scenarios that could either diminish their profitability or open new market avenues."
Environmental, social, and governance (ESG) is increasingly becoming integral for large enterprises, even more so for high carbon-emitting companies in the oil and gas industry. The industry aims to strike a balance between environmental commitments and global energy supply.
Puranik continues: "The ongoing transition towards clean energy sources will also weigh heavily on the oil and gas players. Themes, such as renewable energy, and electric vehicles, are major disruptors to the industry, while CCS and low-carbon hydrogen will create new opportunities for oil and gas players in the coming years."
The themes of LNG, shale, and integrated refineries are also at major crossroads with their utility counterparts in the energy sector. LNG and shale will continue to play a critical role in global energy security. Integrated refineries theme also signals the changing demand patterns in the downstream refining and petrochemicals sector.
Puranik concludes: "In the midst of ESG, macroeconomic, and industry themes impacting the oil and gas industry, technology themes will continue to shape operational capabilities in this decade. Timely and methodical investments in tech themes could provide competitive advantages for oil and gas players."
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Information based on GlobalData's thematic report: 'Top 20 Oil & Gas Themes 2023', which provides a series of predictions for each theme, highlights the winners, and deeper insights into the respective themes.
