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In 2018, the United States produced more than 15.3 million oil barrels daily, making it the biggest oil producer globally. Is it going to be the same in 2020? Read on to find out.

Oil Activity During 2018

Let’s take a look back at how the oil industry fared in 2018. The industry continued to be dynamic and many changes took place. Growth remained positive with some ups and downs. The industry seemed to have recovered from the 2014 slump for good thanks to the increased activity in Canada’s Permian Basin. The following factors also played a crucial role in this recovery:

  • More competition between oil markets
  • Increased demand for oil globally
  • Completion of a treaty among OPEC and non-OPEC nations

There was growth in the natural gas industry as well because the Permian Basin added the output of 2 million barrels daily. Other than that, growth was not substantial.

Oil Activity During 2019

Coming to the present year, the recovery continued from the previous year and prices, investment and growth continued to increase. At the same time, the industry grappled with some minor risks as there were some activity ups and downs. At the moment, the prospects seem bright for the growth of this industry for the following reasons:

  • Employment is increasing across America.
  • The oil and gas sector is seeing increased investment activity.
  • Prices have remained stable throughout the year.
  • Government policies have supported the industry through tax cuts and increased public expenditure.

The main reason for the continued improvement in this sector is that consumer demand is expanding steadily. However, this might indicate a period of readjustment for the industry.

As consumer goods become more expensive and the cost of business increases, there might be reduced supply in some sectors.

Oil Industry Prospects In 2020

In 2020, investors in the oil and gas industry should keep a watch for higher profits and returns.

Because consumer spending saw a recovery in 2018, it is expected that investors can now focus on making their returns more profitable in the short term and long term.

During the period of downturn, there were some players who continued to invest in capital infrastructure, a move that is now paying dividends as the industry moves to a more positive stage. Efficiency has increased as has the capacity to produce.

But can this positive trend extend into the future?

It is expected that despite some activity ups and downs and price increases in 2020, there will be some positive trends as high prices will help producers to recover the cost of capital investment and materials costs.

Lessons can be learnt from the 2014 downturn by making smart investments and using modern technology to earn high returns.

More Trends For The Oil Industry In 2020

Additional trends one can expect in 2020 include:

  • More investment in oil and gas infrastructure, including processing equipment, refineries, pipelines and storage
  • Increased activity in the natural gas sector due to the discovery of gas fields in the Permian Basin and decreased oil activity in the area
  • An industry-wide focus on sustainability issues, including greater investments in low-carbon and renewable options
  • An increase in crude oil prices

A Note Of Caution When Entering 2020

Despite the optimism surrounding the oil and gas industry, it is necessary to move with caution due to the following reasons:

  • Companies should focus on their goals more diligently when exploring new emerging markets and shareholder expectations.
  • Advertising should be the key marketing strategy for the industry to ensure public and community support.
  • Continued investment in technology is mandatory to keep up with innovation in the industry and remain competitive.

Stay updated with the latest industry trends to experience growth and success in 2020.

In 2018, the United States produced more than 15.3 million oil barrels daily, making it the biggest oil producer globally. Is it going to be the same in 2020? Read on to find out.

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