In 2021, oil prices reached their greatest levels in six years, and the oil and gas industry rebounded strongly. While the industry's recovery is better than projected, market dynamics in the future year remain unpredictable. At the onset of 2022, many oil and gas businesses ...

In 2021, oil prices reached their greatest levels in six years, and the oil and gas industry rebounded strongly. While the industry's recovery is better than projected, market dynamics in the future year remain unpredictable. At the onset of 2022, many oil and gas businesses are attempting to reinvent themselves by adopting capital discipline, focusing on financial health, reducing Green House Gas Emissions, and changing business models.

Oil & Gas companies are anticipated to adapt to new environmental, social, and governance (ESG) criteria. For such an adaptation, the oil & gas companies have been substantially working towards recruiting, training, and retaining personnel while accepting and developing smart energy transition targets. Since the beginning of 2021, oil prices have been climbing, boosted by recovering demand and OPEC production caps. However, upstream M&A activity, which is normally correlated with oil prices, is still significantly below pre-pandemic levels. While the dip in upstream M&A activity is primarily due to Oil & Gas businesses' persistent financial restraint, buyers' poor insight into the carbon profile of sellers or their assets is becoming an increasing consideration. Companies seeking net-zero targets are either looking to buy low-carbon-intensity barrels or sell high-carbon-intensity barrels, hinting that acreage consolidation or portfolio restructuring may be on the cards.

Furthermore, the oil and gas industry has witnessed increased demand for predictive maintenance following the COVID-19 pandemic. Essential services were operating with a reduced staff level as the lockdowns were implemented in 2020. As a result, the requirement to digitize the manual procedure of visiting sites to inspect equipment arose. As a result, firms recognized the need for predictive maintenance, as these models may assist organizations in improving maintenance scheduling and resulting in better equipment maintenance even with a limited number of site staff. In the post-pandemic period, the increased use of sensors to detect equipment anomalies and a reduced staff owing to lockdowns or remote working enhanced the demand for predictive maintenance.

Our Oil & Gas industry business intelligence reports offer cutting-edge analysis based on unrivaled research and analytical approaches. We regularly monitor economic growth across countries, which provides a solid foundation for the analyses presented in our reports.