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Opportunities and Challenges for Oil and Gas Companies

 In the background of energy transformation, "four main energy sources have entered a new era." According to Zou Cai, academician of the Chinese Academy of Sciences, "coal has entered the transition period, oil has entered the stable period, natural gas has entered the peak period, and new energy has entered the golden period."

From the current energy development trend, low carbon, high efficiency and diversification are the three main directions of energy transformation in the future, and oil companies are also facing major opportunities.

In general, the increase of energy demand in the future mainly comes from the Asia Pacific region, especially China and India. According to the prediction of the Research Institute, by 2040, 60% of the energy increment will come from the Asia Pacific region, 12% from Africa and the Middle East, and North America and Europe will continue to decline.  

Scientific and technological progress has given new vitality to the oil and gas industry. With the breakthrough of seismic imaging technology, drilling and fracturing technology and new material technology, more and more unconventional oil and gas resources will be unlocked. According to BP statistics, relying solely on scientific and technological progress, by 2050, the cost of oil and gas production will decline by an average of about 30%. The extensive application of digital technology, including advanced seismic data processing, the use of sensors and so on, will play an immeasurable role in oil production in resource exploitation, cost control and production and operation.


Energy diversification also provides a good opportunity for the transformation and development of oil companies. It can be seen that companies mainly engaged in crude oil business are transforming to both crude oil and natural gas business, and companies mainly engaged in conventional oil and gas are transforming to both conventional and unconventional businesses.  

"In the future, natural gas and renewable energy may achieve a complementary development process." Huang said that in the process of transformation, how to meet renewable energy is an issue that needs serious consideration for energy companies.

In the background of energy transformation, "the challenges faced by oil companies from the environment, market and policy can not be ignored." Han jingkuan said.

The change of geopolitical pattern challenges the stability of oil and gas supply and demand. The international community has put forward higher requirements for the development of the oil and gas industry. In the past two years, some countries in the European Union have put forward a specific timetable for the prohibition of fuel vehicles, while some vehicle enterprises have put forward a timetable for the reduction of production of fuel vehicles, including the suspension of production, which will have a certain impact on oil and gas consumption. With the development of technology, the cost of solar energy, wind energy and biomass energy will be greatly reduced, which will also have a certain impact on the consumption of oil and gas. 

"The development of low-carbon transformation of oil companies is imperative. While grasping the unshakable oil and gas business, oil companies should pay attention to the improvement of traditional business energy efficiency and technological progress, adjust measures to local conditions according to time, and do a good job in the deployment of new energy business in time and space. We will continue to break through the development space of traditional businesses and adapt to new changes. " Han jingkuan thinks.