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oil and gas industry

Oil and Gas Industry in 2020: Trends, Expectations and Outlook

Throughout the previous decade, the oil and gas industry faced ups and downs. Political climate caused some scares. Global energy demand continued to soar. By the latter half, the world is pushing for a greener, more environmentally friendly and sustainable future. Countries have been looking for alternative ways to power a light bulb. But the oil and gas industry remained a constant in the background. As the new decade begins and global oil and gas demand eases in, here’s what you can expect to affect the extractive sector.

New Regulation Shakes Up Oil Industry

The International Maritime Organisation or IMO released a new ruling that affects not just the oil industry but the shipping and African oil industry as well.  High sulfur fuel oil, the on-demand fuel for ships and vessels, has been banned with the implementation of the IMO 2020 regulation. Given the sulfur content in oil production in Africa, this presents a new challenge in the African oil industry as to how they will weather through the situation. Over time, shipping companies may shift to marine gasoil or very low sulfur fuel oil for their fuel of choice, according to the International Energy Agency.

Demand for Green Energy Will Increase

Extractive industries remain one of the most widely used energy resource in the planet. But more and more communities, states and sovereignties are slowly shifting towards a greener premise. Demand for environmentally friendly energy sources, such as through solar and wind farms are increasing. Despite the shift towards a lower carbon footprint, the oil and gas industry will still fill the energy needs of the world to keep the global economy running, and it has been since last year.

Auditors on Alert for Greenwashing

The oil and gas industry isn’t exactly known for its eco-friendliness. From the whole affair itself—extraction, refinement and selling—you’ll see how large a carbon footprint the industry leaves on the planet. Along with the increasing need for green energy, some companies should offer alternative energy options, such as electric vehicle charging stations. But such spending might be seen as “greenwashing”, or the padding of sustainability credentials, as International Accounting Standards Board chair Hans Hoogervorst warns. Auditors and accounting bodies, such as member-societies of, have been asked to be vigilant for such misrepresentations that may sway investor opinions.

The Shale Revolution Canceled?

oil industry The shale revolution primed the US to be a major energy exports player. Fracking continues to fill up the country’s energy needs and demands. “What began as a gas play now supplies the US with the bulk of its oil and gas needs,” said British economist Nick Butler. But profits remain slim for US’s power play, slowing down the country’s shale oil production. It’s made waves in Argentina and Canada back in 2019, but whether shale becomes the new gold standard remains uncertain. Oil and gas industry faces a new decade of uncertainty. The extractive industry might remain an energy powerhouse that fills the world’s energy needs, but demand for such has eased. Regardless of the shift towards more sustainable, greener energy sources, they still haven’t reached the point that oil and gas won’t be needed as much as possible. Oil and gas companies should look towards greener options to boost their portfolio as demand for the oil and gas industry continues to stabilize.
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