Articles February 7, 2024
Oil and Gas Industry Trends 2024: Embracing Technology to Increase Production, Improve Efficiencies, and Reduce Emissions
The industry is well positioned for growth in 2024, with several factors driving demand:
A Recovering Economy
The global economy’s ongoing recovery from the effects of the COVID-19 pandemic is expected to fuel increased demand for oil and gas. As economic activities rebound, energy consumption, particularly in transportation, manufacturing, and construction sectors, is likely to surge.
A Growing Industry
Expanding industrial activities, especially in emerging markets, will increase the demand for oil and gas. Industries such as petrochemicals, plastics, and manufacturing heavily rely on hydrocarbons as feedstock and energy sources, bolstering demand.
The Surge in Petrochemicals
Oil demand is closely linked to the transportation sector, including road, air, and maritime transport. While we expect travel to continue to normalize following a surge post- pandemic, there will be an increase in the consumption of petroleum-based fuels driven by the demand for petrochemicals. According to the International Energy Agency, this will account for over a third of the growth in oil demand by 2030 and nearly half by 2050, ahead of trucks, aviation, and shipping.
Meeting Emerging Needs
Growing populations and rising standards of living in developing economies will fuel increased energy consumption, driving demand for oil and gas to meet the needs
of expanding urban centers, industries, and infrastructure development. Without outside investment, these developing economies cannot invest in clean energy and will continue to rely on traditional sources to keep up with growing demand.
Executive Summary
The oil and gas industry is transitioning towards renewable energy sources, driven by climate change concerns and supported by government incentives, leading to investments in low-carbon technologies, carbon capture initiatives, and the adoption of Industrial Internet of Things (IIoT) for emissions monitoring and compliance.
Digital transformation, driven by technologies like AI, ML, and IIoT, will revolutionize the oil and gas industry in 2024, optimizing operations, improving safety, and enhancing efficiency through data integration, automation, and advanced analytics.
Geopolitical challenges and market volatility require robust supply chains, risk management strategies, automation, predictive analytics, and scenario planning to navigate uncertainties, optimize operations, and seize new market opportunities
As emerging economies in regions like Asia and Africa continue to grow, the oil and gas industry will experience increased demand, prompting companies to expand their operations in these markets, prioritize sustainable resource extraction, and invest in renewable energy solutions and advanced technologies to support responsible growth and meet evolving energy needs.
In 2024, the oil and gas industry will place increased emphasis on emissions reduction, ESG considerations, and safety through the adoption of advanced technologies like drones, sensors, data analytics, automation, virtual reality, and robotics, while also prioritizing community engagement and attracting investors through strong ESG performance.
In 2024, the oil and gas industry will focus on realizing the value and synergies from major transactions executed in 2023, with successful companies prioritizing the rapid implementation of Master Data Management (MDM) practices to consolidate and harmonize critical business data, streamline processes, and achieve operational efficiencies, ensuring they are well-positioned and meet shareholder expectations.
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Whitney Olmsted
Managing Director
Whitney leads CapTech’s Energy and Natural Resources sector, collaborating closely with clients to identify industry-specific challenges and drive the development of technology solutions that yield substantial returns on investment. With over three decades of expertise in technology and strategy, Whitney leads her teams in implementing innovative solutions that deliver tangible, real-world value.
Nathan Tatum
Managing Director
Nathan is a managing director with 13 years of IT consulting experience. His primary focus is the successful delivery of data integration and visualization projects across modern data architectures, focusing on streaming applications solving complex and ambiguous business problems.
