Oil and Gas Trends to Look for in 2020

Oil and Gas Trends to Look for in 2020

With an average of over 15.3 million barrels of oil produced per day, the United States was the most dominant oil producer in 2018. The American oil industry was able to offer a supply that kept gas prices low for consumers. With new technologies constantly arising in the industry, America’s oil industry is expected to continue growing. Investors should be on the watch for these trends from the oil and gas industry in 2020. Backtracking to 2018 The American oil industry adapted well to the changes that occurred in 2018. After the downturn of the industry in 2014, American oil and gas companies continued to devise new plans and strategies to improve their services. There are several factors that play key roles in the 2018 growth of the American oil industry. Oil production from America’s competitors decreased while the demand for oil increased around the world. Additionally, a treaty between countries that belonged to OPEC and non-OPEC countries allowed America to dig deeper into its oil production. This Year, 2019 Deloitte, a member of the “Big Four” accounting organizations, expected that oil and gas companies would experience a full recovery during 2019. As a result, many investors began to place more money into companies in the oil and gas industry. Many oil and gas companies then responded by utilizing the additional funds to improve their operations. Looking Forward to 2020 There is a possibility for future disruption in the oil and gas industry. The gradually rising costs in external industries may affect the supply costs of oil and gas companies. However, based on the industry’s track record in 2018,...
How The Recent Saudi Oil Attack Can Affect Gas and Oil in the U.S.

How The Recent Saudi Oil Attack Can Affect Gas and Oil in the U.S.

Terrorist-controlled drones dropped explosives on several oil refineries in Saudi Arabia. This shut down oil production for some Saudi oil producers and disrupted oil supplies around the world. The damage will take months to repair, and oil production will be reduced for the foreseeable future. How Will This Affect Us? This has already translated into higher gasoline prices here at home. Some regions have seen a twenty to thirty cent rise in prices. While the Saudis struggle to repair the damage to their refineries, many fuel-related prices will remain higher than usual. Whenever oil prices rise, it directly affects transportation costs. This includes airfare, gasoline prices, and the cost of transporting goods throughout the world. Groceries, household items, and heating costs will probably rise to reflect the increase in transportation costs.  What Can I Do? It pays to tighten the belt, figuratively speaking. We can streamline our budgets to allow for higher gas prices. This may mean replacing some expenses with cheaper alternatives. We can rearrange other daily routines, as well. Travel plans may change for more local fare. Reserving airline tickets as early as possible will yield the highest savings on those. Buying local products will save on transportation expenses. Practice fuel-saving driving habits that save gas. These include observing slower speeds with a lighter foot on the brake pedal. Ridesharing can cut commuting costs in half. Turn down the heat by one or two degrees. Carry a sweater with you as the weather cools. Consider which items you can buy in bulk or on sale. Further Consideration Some Saudi oil production will be back online within two...
How Technology Is Changing The Gas And Oil Industry

How Technology Is Changing The Gas And Oil Industry

Technology is already infiltrating different industries and making a huge impact. Advances in technology that supports the industry are geared towards solving some of the biggest challenges in the oil and gas industry. From the need to enhance safety to preventing catastrophic disasters and unwanted effects, technology in the oil and gas industry has substantially revolutionized oil mining and distribution. Enhancing safety One cannot talk about the oil and gas industry without reviewing the safety issues that the industry faces. From the harsh reality of the loss of lives as a result of accidents to the inherent risk of making substantial losses in the valuable assets, the risk is all over. Various technological solutions have been developed, targeting enhancing the safety of oil and gas mining crew. Oil mining crew can, for instance, inspect the condition of oil wells at the click of a button and thereafter take the necessary corrective measure to enhance safety. Industry players also get a chance to guarantee the oil transmission process by inspecting pipes for leakages. Enhancing efficiency Oil mining and exploration technology also enable stakeholders in the entire industry to achieve high levels of precision when it comes to the mining process. Oil exploration companies, for instance, can use the latest equipment and technology to precisely map the quantity and feasibility of a given oil deposit. This increases the chances of return on investment since the mining companies can only invest after establishing sufficient feasibility. Data and communication The entire oil industry is currently digitized, with data being a key parameter that advises oil mining companies and other stakeholders on the strategic...
Gas and Oil Industry Update: August 2019

Gas and Oil Industry Update: August 2019

Oil prices have been volatile within a fairly tight range in 2019. In many ways, the year has been a recovery from the previous year in which the price plunged in November. Several news events have caused the price to be shaky throughout the year, such as Trump’s tariffs and trade wars, Iran sanctions, and the United States stepping up production on domestic shale oil. Here are some important points to know about gas and oil in August 2019. State of Oil Production A recent Deloitte survey found that executives of oil, gas, and chemical companies were confident about industry growth in 2019. Although the overall market has been volatile during the summer of 2019, investors should take note of the trading opportunities in the $55 to $65 price range of crude oil. The Dow has fallen from its record high this summer mainly as a response to President Trump threatening additional tariffs. These tariffs drive up business expenses even for U.S. oil companies. The oil and gas industries are vulnerable because of the need for specialized steel for refineries. One of the main energy issues in 2019 is sustainability. Several reports are starting to show that renewable energy is beating fossil fuels in cost efficiency. Investors are becoming increasingly interested in sustainability, which affects a corporation’s image and balance sheet. Cutting energy costs is now a top priority among many large corporations. The oil industry now faces tough challenges for competing with solar and wind energy in the future. Keeping up with oil and gas industry news is essential for oil investors. Oil Companies Diversify Several oil and...
Understanding the Shale Boom and Its Effects

Understanding the Shale Boom and Its Effects

The shale boom helped to monetize an important natural resource. There’s always been fossil fuel trapped in shale formations. However, it was always difficult to access. Originally, oil and gas companies had to wait for natural breaks in the rock to make the gas accessible. The development of fracking in the first half of the 20th century made it possible to drill down. Advances in fracking over the past 20 years have made it possible to extract much more. Deeper drilling in hydraulic fracking has meant big things for countries like the United States and Canada. Governments love the idea of accessing these gas and light oil deposits, and it’s easy to see why. The shale boom has taken power from the hands of cartels like OPEC. By knocking them back on their heels, the West is getting closer to true energy independence. However, the big oil and gas companies aren’t thrilled about the shale boom. They haven’t been able to capitalize on it. Because there’s more supply of natural gas and light oil than before, prices are falling. The outlook for the companies hasn’t been that great. Though they’re making a profit, it’s not going as far as they need it to. The shale boom required a lot of investment in new technology. That means taking on some debt. Then 2008 created a recession that was felt the world over, in every industry. It’s also fairly expensive to extract this natural resource. Because the drilling is deeper than ever, it’s also more expensive than it used to be. Paying back the investment that makes this possible will take...
How Could The New Tariffs Affect The Gas And Oil Industry?

How Could The New Tariffs Affect The Gas And Oil Industry?

For many years, Mexico and the United States have had an extremely stable trade alliance. In the last year alone, roughly $345 billion in United States goods were imported into Mexico while Mexico sent $265 billion worth of goods to the United States. Thanks to increasingly high Chinese tariffs, more and more American companies were working with Mexican manufacturing industries. One of the most common forms of trade has been getting raw goods from Mexico to refine them and then ship them back to sell to the Mexican public. Unfortunately, this mutually beneficial relationship seems to be coming to an end. The current government has been threatening to increase tariffs on Mexican imports as a reaction to fears about illegal immigrants. According to Twitter posts from the president, there are plans to put a 5 percent tariff on Mexican imports by June 10 and raise it to 25 percent by October. So far, it is unclear how these tariffs would do anything to reduce illegal immigration. This plan has been met with a lot of concern from economists, with economist Katheryn Russ explaining that these tariffs would mean the United States would essentially be taxing themselves on their goods. The oil and gas industries will be some of the hardest hit industries if these tariffs go into place. The United States currently purchases over 700,000 barrels of crude oil from Mexico each day. Just a five percent tariff would raise costs by $3 a barrel. The higher prices would hurt companies, who would most likely pass on the rise in costs to consumers. As the chairman of Mosaic Resources...