The oil and gas industry is always evolving and never stays the same for very long. Changes in technology and market trends can also play a big role in the future of these resources. Here are the top things to expect in the oil and gas industry for 2020.
#1 Increase in Mergers & Acquisitions
One of the top trends in 2020 will be an increase in the level of mergers and acquisitions. Several sizable transactions have already occurred this past December due to bankruptcies involving small to medium-sized producers. Expect this trend to continue throughout the upcoming year.
#2 Shale Production Will Keep Rising
Another trend for 2020 is that shale production is expected to continue to rise despite all of the negative media coverage of doom and gloom. The number of producers will continue to evolve, as highly-leveraged producers merge into more integrated companies. However, these dynamics can quickly change in 2021 if a more progressive candidate wins the presidency.
#3 U.S. Exports Will Continue to Escalate
The United States will continue to export oil and natural gas as the production levels, and export capacity will continue to grow. The shale revolution has also played a key role in the change in U.S. strategic interests across the globe. The ability to extract massive amounts of oil and natural gas from shale has made the United States much less reliant on foreign resources.
#4 A Move Towards Sustainability in the Oil and Gas Market
The oil and gas industry continues to make changes to implement a more environmentally friendly agenda. Various oil and gas companies are making investments in renewable and low carbon energy companies, as this trend will only continue to grow in 2020.
Keeping up with the latest news and trends in the oil and gas industry is an ongoing process due to the ever-evolving nature of the market. The year 2020 will see an increase in mergers and acquisitions, while shale production will continue to rise, and exports in the United States will continue to escalate while also focusing on long-term sustainability. Keeping an eye on these trends is a great way to stay up to date on the ever-changing nature of the oil and gas industry.