According to the Oil and Gas Reality Check 2015 report conducted by Deloitte Touche Tohmatsu Limited’s (DTTL), the ups and downs experienced by the oil industry will not affect the long-term trajectory of the sector. It will, however, speed up the unfolding trends in the industry. The report outlines 6 major issues currently affecting the sector. These include the evolving dynamics of national and integrated oil companies among many others.

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6 Key Trends Unfolding in
the Oil and Gas Industry
According to the Oil and Gas Reality Check
2015 report conducted by Deloitte Touche
Tohmatsu Limited’s (DTTL), the ups and downs
experienced by the oil industry will not affect
the long-term trajectory of the sector. It will,
however, speed up the unfolding trends in the
industry. The report outlines 6 major issues
currently affecting the sector. These include the
evolving dynamics of national and integrated oil
companies among many others.
Evolving Dynamics of Integrated Oil
Companies and National Oil Companies
At the present time, it is hard to imagine
Integrated Oil Companies (IOC) not playing a
vital role in the production and exploration of
oil. However, it is possible for IOCs to lose their
market shares to National Oil Companies
(NOC). To prevent this, IOCs need to maintain
their edge in the changing competitive scenario.
Dropping LNG Prices
LNG prices were once a model of stability, but
that is not true now. North America retains its
natural trading advantage with Europe as natural
gas trade-ins become more apposite in
geographically proximate regions. Since the
most efficient producers are likely to win global
market share, the United States will have a
competitive edge as their LNG breakeven points
are lower.
Shift in Supply-Demand Fundamentals
The fluctuating dynamics are creating a power
play between traditional and new suppliers.
United States continues to be a major producer
of oil and gas despite the shifting energy trade
patterns. Since USA is not an anchor market
anymore, major oil suppliers around the world
are finding new buyers.
OPEC
Currently, OPEC supplies 32% of the world’s
crude oil, but the organization’s market share is
expected to fall by 5% in 2018 as US oil supply
recovers. Although that share may recover,
OPEC will temporarily cede power.
Emerging New Trading Partners
With the evolving oil and gas supply and
demand fundamentals, new trading partners are
emerging worldwide. As the relation between
these emerging partners strengthens, OPEC can
extend its share in the European market.
Investing in Innovation
Companies need to invest in advanced analytics
to avoid cost and time overruns, as well as to
enable agile project evaluation and monitoring.
There are plenty of strategies they can use to
meet long-term energy demand.