The oil and gas industry is cyclical. With each cycle, the
industry adapts and evolves to meet unexpected challenges and new
demands. In 2024, the oil and gas industry is dealing with higher
interest rates, armed conflicts in Europe and the Middle East,
rising material costs, a decrease in Tier 1 acreage, and new
policies and laws.
Market participants need to be nimble and respond quickly to
rapid changes. This year, we are closely watching these issues:
- growth in demand;
- M&A;
- increased regulation of ESG matters across the oil patch;
- the energy transition; and
- the integration of technology.
Demand growth
We are not at peak demand. For the first time, demand rose
beyond 100 MMbbl/d in 2023, as reported by the International Energy
Agency (IEA) in its December Oil Market Report. To meet rising
demand, global output rose to 101.9 MMbbl/d, including an
additional 20 MMbbl/d from the U.S. Both the IEA and OPEC believe
that both the demand for and the
