Oil & Gas
ACCORDING to DNV GL’s industry outlook for 2020, optimism for growth in the oil and gas industry has weakened for this year amid uncertainty around the oil price and global economic conditions. The company’s survey of more than 1000 senior oil and gas professionals, two thirds (66 percent) are confident for industry growth in 2020, down 10 percentage points from 2019.
Despite volatile market conditions, and the need to draw on hard-earned cost efficiencies to make margin, DNV GL also sees oil and gas companies taking bold decisions this year. Industry leaders are boosting investment in areas that will allow them to forge a long-term position in the energy transition. Some 71 percent expect to increase or maintain investment in decarbonization, rising sharply from 54 percent in 2019.
Significantly, companies are pursuing multiple routes to achieve this, including diversifying into renewable energy, decarbonizing oil and gas production, and increasing investment in decarbonized gas such as hydrogen produced from electrolysis and renewables, or from natural gas combined with carbon capture and storage. The industry’s intentions to increase investment in the hydrogen economy has more than doubled in a year.
This 10th annual edition of DNV GL’s industry outlook shows an industry considering new directions and making complex choices that have powerful impacts for the long run, while maintaining the shorter-term business priorities and delivering results for 2020, Liv A. Hovem, chief executive officer of DNV GL – Oil and Gas, said in an email to Realnews on Tuesday, February 4.
– Feb. 4, 2020 @ 15:09 GMT |
Tags: gas industry weakens Optimism for growth in oil
