Oil and Gas

The future of global oil has become more uncertain: The downshift in Chinese consumption is changing the demand outlook, while the growth of U.S. and Western Hemisphere oil is rebalancing the global market. The war in Ukraine has turned a global oil market into a divided market. Even with energy transition, oil will continue to play a significant role in the energy mix for decades to come. To meet this demand as the world pursues lower emissions, companies are innovating with technologies and business models, while tapping new digital tools and AI to increase efficiency. At the same time, companies face new geopolitical challenges and global rivalries that are reshaping the sector’s investment landscape. Energy security has reemerged as a critical concern for governments, adding to the uncertainty for long term demand outlooks and the required levels of investment.

Natural gas consumption, which has grown by almost 60 percent over the last two decades, is headed for further growth in the years ahead. LNG, which has tripled, will continue to expand globally, replacing coal and supporting economic growth in Asia Pacific and developing countries. U.S., Qatar, and other suppliers will increase export capacity, with a need for better understanding of the economic impact on exporting economies. Russia’s invasion of Ukraine has reduced it to the role of a minor exporter. European consumption, which is down significantly since the Russian invasion of Ukraine, will be dependent on the future of European industry. In the United States, natural gas will be a major contender in assuring electricity reliability for data centers and AI. Managing methane and expanding infrastructure will remain priorities.