Oil and gas industry is widely perceived to be a mature industry, as new forms of energy are adopted, and as attention to climate change and sustainability increases stakeholders must transform their business and processes. The International Energy Agency forecasts that approximately 35 per cent of the world’s electricity generation will still be coal-based in 2024.
The future outlook of oil and gas is challenging as a result of volatile oil prices, emergence of new hydrocarbon sources, increasing penetration of renewable energy, adoption of electric vehicles, stricter carbon regulations, and better energy storage technologies. To deal with these challenges, companies involved in the mid and downstream industry of oil and gas are changing their business models and shifting their main revenue streams. For the upstream industry, companies are investing in technology to optimise their operations and processes. Despite so, key considerations lie in the high costs involved in adopting new technology for oil and gas players.