The Future of Oil and Gas In a Carbon Conscious World

The Future of Oil and Gas In a Carbon Conscious World

The Future of Oil and Gas In a Carbon Conscious World


With the current issue on carbon emissions and our planet, it is natural to question the future of the oil and gas industry. As the number of advancements in renewable energy sources and the increasing efficiency of our technologies continue to grow, is the high demand of oil coming to an end?Considering the current demands of the industry, as well as its adaptive capabilities, may provide the answer.


Fulfilling An Undeniable Need


“Oil is here to stay, with purpose and reason, at least for the foreseeable future and as Linhua rightly concludes,“the ice age of oil will come but it is a few decades away.” 


Aside from the fact that it is currently a leading source of energy, there are numerous reasons why oil will remain in high demand for years to come.


Consider the immaturity of current oil alternatives. While an immense amount of research and advancements have occurred in the field of renewable energy, these alternatives have not reached the appropriate level of maturity to fully replace oil as an efficient energy solution.


Now try to imagine an age without oil. What regulations are in place for the new energy source? How much revenue was required to build the necessary infrastructure to maintain these regulations? Even when alternative energy solutions are ready to compete with oil on a large scale, it will take years – possibly several decades – in order to even establish the preliminary work necessary to begin.


However, the oil and gas industry has another advantage that we must not fail to recognize – transformation.


 Embracing Change: The Persistence of The Oil and Gas Industry


“By 2020, we will see the new industry emerge and it will better, lower cost and much more flexible – but it will need to survive cyclicity and volatility which will be exacerbated by today’s inertia.” 

– Martin Houston, Executive Vice Chairman, Tellurian Investments


The beauty of business is its ability to evolve. In fact, it is constantly evolving. With every competitor, a new strategy. With every challenge, a new business model. With every risk, the possibility of a substantial reward. In order to remain in high demand and secure themselves a prominent future, members of the oil and gas industry will need to transform. Fortunately, the oil and gas industry has plenty of room for improvement and advancement.


In an effort to stay ahead of the competition, we have already seen this industry make strides towards advancing their digital technologies – and this will only continue. These enhancements may grow to incorporate technologies such as predictive analytics and increased energy efficiency. Improvements like these will effectively boost productivity and performance, saving an unprecedented amount in production costs.


Many current advancements surround the idea of making less energy go a longer way. While many oil and gas companies may see this as a disadvantage due to the potential of decreased demand, some may see it as an opportunity to develop new and innovative business models – these companies will have the upper hand.



The Power of Industry Evolution



Surviving the “ice age of oil” may have its challenges. Flourishing in it ? Even more strenuous. However, decades from now, the oil and gas industry will have transformed itself into a vastly more efficient and adaptive force.



Until then, the evolution must be an endeavor of intelligent, bold, and competitive choices. But the future of this industry is open, and therefore free to develop in a superior way. The businesses who choose to greet the challenges that accompany renewable energy with the reinvention of themselves will not only secure their dominance, they will become part of the solution.