Key Trends in Energy Management for Gas and Oil
- Sep 20, 2018 3:25 pm GMT
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Aside from occasional fluctuations, the level of demand for gas and oil has risen incrementally over the last three decades. The long-term outlook for these sectors is also promising, with most of the market leading nations likely to have a distinctly higher production maxima in 2020 than they did in 2011.
These markets are also diversifying at an incredible rate, with renewable energy offering a clean and more sustainable alternative to fossil fuels. New technologies are also being developed to make the management and distribution of fossil fuels more efficient, which is crucial given the continued dominance of gas and oil.
In this post, we’ll consider three key trends in gas and oil while asking how they’re likely to impact on these growth markets.
Technology is Making Fossil Fuels More Sustainable
The use of fossil fuels such as coal dates back to around 1,000 BC, and this market has historically been less than receptive to innovation and technological advancement.
This has changed in the age of corporate social responsibility (CSR), however, with oil and gas producers having been forced to embrace innovation and become more adaptable when drilling and mining.
One of the main areas of focus has been the way in which natural resources are mined, with developments such as extended reach drilling enabling producers to tease out every drop of oil. Similarly, flow control experts sell a range of innovative products aimed at optimising efficient drilling, while also minimising wastage and the environmental impact of sourcing.
Concepts such as waste-to-energy technology have also had a big impact on the market, particularly in terms of how waste products are treated and the carbon footprints of key players in the market.
Gas Consumption is on the rise
Earlier, we talked about the rising levels of demand for fossil fuels, and there’s no doubt that gas is leading this charge. Gas consumption is growing three-times faster than oil, for example, and this trend is expected to continue for the foreseeable future.
At the heart of this is the rising demand for natural gas, which has already revolutionised the energy markets in Qatar, Australia, Malaysia and other developing nations.
According to the BP Energy Outlook for 2040, natural gas currently accounts for 25% of the world’s energy consumption, while demand is expected to grow at an average rate of 1% globally between now and 2050.
Over time, there’s little doubt that this type of clean energy source will have a positive impact on the natural environment, while gradually diminishing the demand for traditional gas.
Recognising the Gradual Shift in Energy Supply
This brings us neatly onto the gradual but inevitable shift in the global energy supply, as while fossil fuels are expected to remain dominant for a few more decades at least they will eventually be overhauled by renewable alternatives.
To put this into context, it’s estimated at 25% of the world’s energy supply would be renewable by 2040, while 75% would remain as oil and gas.
This shift is being driven by the changing nature of consumer demand and innovation, with new technologies making it easier and cheaper to harness natural energy sources.
At the same time, new innovations are helping to create a transition between fossil fuels and renewable energy sources in the digital age, especially in terms of how resources are sourced, managed and then distributed.