Despite the inherent volatility of the oil and gas industry, analysts can forecast trends based on historical figures and the current political climate. Investors, then, are updated on the market. Listed below are a few trends to take note of this year:
Image Source: telegraph.co.uk
Sustainability through strategic liquidity: Oil companies are creating growth opportunities to battle threats to the industry’s sustainability. These come in many forms, but the most talked about is ensuring strategic liquidity. This means keeping tabs on financial growth, having contingency plans for refinancing, and expiring hedges, among other things. The emphasis here is keeping sustainable structures to reduce cost. These plans have its effects in the stock market, with smaller mutual funds having a higher risk of expiring at no return.
Image Source: offshoreenergytoday.com
Technological growth: The oil and gas industry is currently undergoing a major transition due to certain technological advances. Software have leveraged a major percentage of oil services, allowing suppliers to meet ever-increasing world demand. Moreover, technologies for further improving the industry remain in the pipeline and await testing prior to deployment.
Global partnerships: Deeper relationships among countries are projected to develop for the sake of oil supply. Current political events can hinder this, but oil is a depleting commodity. In order to maintain a level of global stability, international communications must be kept and managed. Several oil companies are already pushing towards this move, signing countries with independent suppliers across the world.
This year promises to be an exciting one for the industry, with more companies shifting gears to become more relevant in this modern society.
Cody Winters is a reputable expert in the oil and gas industry. Learn more about the industry when you subscribe to this YouTube channel.
