Rising Oil and Gas Industry Trends in 2022

Rising Oil and Gas Industry Trends in 2022

Rising Oil and Gas Industry Trends in 2022

February 24 was a pivotal day in the oil and gas industry. Russia’s invasion of Ukraine had immediate implications for the oil and gas industry. The swift imposition of sanctions and the solidarity NATO countries displayed, even at the risk of energy shortages, threw the global supply of oil into doubt and the markets into disarray. As the fallout continues to affect Europe particularly, it’s helpful to remember that other trends continue to surface. Here are five rising oil and gas industry trends in 2022.

Data Analytics and Artificial Intelligence

The oil and gas industries continue to improve their technology. In 2022, producers and distributors will employ data gathering and data analytics to inform operations. Artificial intelligence (AI or machine learning) will enable producers and distributors to better manage, predict, and discover resources to improve efficiency and increase their return on investment.

Predictive Maintenance

Hand-in-hand with AI, sensors in oilfield equipment will report back to computers equipped with algorithms that can predict potential failures down to individual parts. This allows oilfield personnel to perform timely maintenance, prolong the lifespan of equipment, improve safety, and reduce costs. Producers will need retrievable oil and gas tools that permit them to temporarily shut off flow for maintenance.

Silver Fox is a leading supplier of downhole tools for oil and gas drilling and maintenance, including protective coatings for downhole equipment. We partner with oilfield service companies to enable swift completion and efficient maintenance of wells.

High Prices Accelerate Investment in Both Exploration and Decarbonization

The soaring price of oil led to a big boost in profits for oil producers. High prices at the gas pump have not significantly affected demand, and transitioning to alternatives will take time. Yet even as drilling and exploration continue, some oil producers are also looking to expand their businesses, rebranding themselves as “energy” companies offering alternative energy sources along with traditional oil and gas. Profits from high prices will be reinvested in drilling and exploration, but also in decarbonization strategies and methods, including wind, solar, geothermal, and remediation like carbon capture and storage.

Shift From Lean Thinking

Not many things have rocked the industry more than the lack of available short-term inventory. The adoption and global use of lean manufacturing has caused serious ripples if not tidal waves to some industries, most notably those impacted by the chip shortage. While the ongoing outlook has improved, albeit slightly, there are still shortages, and demand is still outstripping supply in many cases. Companies that invested and closely managed their manufacturing cycle likely saw the ripple before the wave and acted accordingly, putting themselves in a long-term position of growth and impact in their market.

Liquid Natural Gas Exports Become Urgent

When Germany froze the Nord Stream 2 pipeline project, finding non-Russian sources for natural gas became an urgent priority in Europe. Other than Russia, the US, Qatar, and Australia are the major suppliers of liquified natural gas (LNG). Winter will come, and homes must be heated. Oil and gas companies, and equipment suppliers like Silver Fox, will help us to ensure that fuel is available for heating and for transportation.

These five emerging trends in the oil and gas industry have already taken hold in the first half of 2022 and will likely continue to affect the industry for the rest of the year and beyond.