Thursday, 28 February 2019

Upstream Oil & Gas Predictions For 2019

AN INCREASE IN OFFSHORE ACTIVITY

Offshore activity is expected to increase as new projects are being sanctioned and activity levels are approaching 80% of their historical highs. This suggests that the offshore upturn seen throughout 2018 is set to continue. With a recent rise in final investment decisions on offshore oil and gas projects globally, this is set to have a positive impact on global offshore investments throughout 2019

SMALL COMPANIES STORM AHEAD

2019 could be the year in which smaller producers take the reins in the oil and gas market. With the North Sea remaining one of the biggest and most important regions for activity, offshore projects are on the rise, and innovations are moving quickly. It is key that companies can act and respond efficiently to a fast-paced industry. Smaller operators can often offer more streamlined decision-making processes, which allows them to act rapidly to develop and explore changing environments within the market.

GOING DIGITAL WITH INDUSTRY

Within the industry, 2019 is the year in which service companies and operators alike can transform operations efficiency across their workforce by leveraging advanced digital technologies.

RECRUITMENT SURGE

With 41% of oil and gas company executives expanding their headcount throughout 2018, it is highly likely that this recruitment drive will continue into 2019.

This anticipated growth in recruitment is undoubtedly a reflection on a positive shift within the oil and gas industry which has seen companies remaining reactive to market conditions and offshore activity rising. Growth in headcounts has been aided by campaigns within the industry to push for a more inclusive workforce.

OIL PRICE INCREASE

And finally, perhaps the most important trend we hope to see throughout 2019 is an increase in oil prices; which is currently over $80 per barrel. It has been speculated that prices could rise towards $100 per barrel towards the end of the year or by early 2019. The year-on-year increase in oil prices is positive steps towards recovery following the 2015 slump. Furthermore, analysts at Offshore Magazine have predicted that offshore gas production will perform well moving into 2019, resulting in a peak in prices.

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