Oil and gas industry is ready to spring forward
The sun is starting to peek through, the days are getting longer, the daffodils are making their appearance… With the clocks changing this weekend, there is no denying the fact that Spring is on the way and brighter days are ahead.
After a tough few years in the oil industry, it looks like there are also brighter days ahead for all of us who work in this sector. The once-gloomy predictions have given way to a much more positive outlook.
An article in Pipeline magazine says that global energy demand is set to increase by 34 per cent by 2035 – a much-needed boost to ensure that our industry starts to thrive once again. This is in spite of the current oversupplied market and China’s economic slowdown.
The figures come from BP’s Energy Outlook – 2016 Edition, which is a key report that looks at long-term energy trends. At Corrotherm we are always interested in this report when it is released, as it helps us to stay on top of the current climate and the longer term outlook - how things are likely to change over the next 20 years. We are always looking to the future to ensure that we’re ahead of the game and able to plan effectively to meet demand.
A foreword to the report by Group Chief Executive Bob Dudley highlights key trends that will affect the industry in the next two decades. First, there will be a continued growth in energy demand as the world’s economy prospers and expands. In addition, the fuel mix will also continue to shift, with fossil fuels remaining the dominant source of energy, supplying 60% of the additional energy needed through to 2035, and accounting for close to 80% of total energy supplies at the end of this next 20-year window. Gas is likely to be the fastest-growing of the fossil fuels, which is certainly good news. This is due to a strong growth in supply, in particular of US shale gas and LNG.
Finally, thanks to improved energy efficiency and lower-carbon fuel sources, carbon emissions are likely to increase at a slower rate in the future than over the last 20 years. This is because businesses like Corrotherm are helping companies develop new technologies that take a responsible approach to the environment and the industry's impact upon it.
While we’re well aware that these changes are not going to happen overnight, we remain positive that the outlook is bright. As Bob Dudley says: “We have faced similar [tough times] in the past and we know that the market will eventually rebalance. We need to respond to the near-term challenges, but we mustn’t lose sight of the longer-term role of our industry in providing the energy the world needs to grow and prosper, and doing so in a safe and sustainable manner.”
There are certainly exciting prospects ahead, and we are prepared and ready to spring forward and help our customers - old and new - with their future projects. If you would like to discuss your needs, please contact our experienced sales team.
