4 Trends in the oil and gas production industry that you should know about

According to the US Energy Information Administration, hydraulic fracturing accounted for more than one-half of US oil production and two-thirds of US gas production in 2015. That percentage is expected to rise as more states begin to adopt the practice. CREDIT: Penn State

Energy Sector excited Crew from Thunder Bay
Energy Sector excited Crew from Thunder Bay

LONDON – ENERGY – The going has not been easy for the gas and oil production industry. The prices of fossil-based energy have been on the decline due to overproduction. In fact, this decline in prices has pushed some companies into closing shop altogether. Those that have managed to remain afloat owe their success to strategic planning. They have had to adopt new business models that revolve around IoT (Internet of Things). This is because integrated systems have proved to be more efficient than conventional business models that are so much tied to people. Below is a list of trends that are slowly gaining popularity in the oil and gas industry.

  1. Reduced Workforce

Although most companies are committed to exploring more gas and oil production opportunities, they are not hiring people as one would expect in a business that’s experiencing tremendous growth. They are actually downsizing. This is because most of the production processes are now being delegated to automated systems. By maintaining a minimum number of employees, these companies are able to cut back on their operational costs.

They have even invested in drones that are being deployed to inspect areas that are not easy to reach. Funny enough, the companies are not sourcing for young engineers so that they can replace those that are about to retire. Those who had aspirations of pursuing a career in the oil and gas sector have had to change their mind because these automated systems are eradicating job opportunities. Experts warn that there will be a shortage of gas and oil engineers in the near future.

  1. Apps are Here to Stay

Oil and gas companies are no longer relying on the skill sets of operation managers. This is because they are relying on the efficiency of robots and apps. The robots are being used during the installation of pipes. And in case a pipe bursts, it’s still a robot that will mend it. There are automatic sensors that are being used to tell when a fault is about to happen. Since the production of oil and gas entails repeating certain tasks over and over, apps have been developed to run all the processes. The apps are also being used in training new employees. This guarantees a short duration of orientation.

  1. Diverse Portfolios  

The emergence of green energy posses a great threat to gas and oil producing companies. To counter this threat, the companies are diversifying by venturing into green energy production. This gives them a fall back position in case of a crash. In other words, they have a strategic backup plan that guarantees the security of their business because they will still have products to sell to the masses.  By the time of writing this, upstream companies had already entered into partnerships with established green energy companies.

  1. Decline in Oil and Gas Prices

Although the prices of oil and gas seem to be rising from their plateau, their future is still uncertain. As the demand for renewable energy continues to swell, it’s anticipated that the prices of oil and gas will continue to sink south. The reason behind this argument is that there is already too much of gas and oil supply than what the market needs. However, some investors are optimistic that the situation will turn around in the near future and perhaps that’s why they are still holding on to the oil and gas that’s reserved for future use. It’s only time that will tell whether the prices of oil and gas will stabilize or continue to dwindle. All that is left is for us to observe as events unfold and aspire to learn more.