Oil and gas

The oil and gas industry will incr乐动体育登录ease investment in decarbonised, despite the industry's outlook in 2020 less confident - DNV GL latest research report

New Directions, Complex Choices: The outlook for The oil and gas industry in 2020

乐动体育登录DNV GL released new research suggests that the industry of oil and gas industry growth in 2020 have become less optimism, mainly due to the uncertainty of oil prices and global economic conditions, the two factors is the industry think that the biggest obstacle to industry growth.

  • Two-thirds (66%) of senior professionals for oil and gas industry growth in 2020 have confidence, this proportion dropped 10% compared with 2019

  • Nearly half (46%) of respondents said that if oil prices this year average below $50 a barrel, their companies are still can achieve an acceptable profit

  • Despite the market turmoil, there are still 71% of the respondents is expected to increase or maintain decarbonised investments, compared to 2019 the proportion (54%) had risen sharply.The increased investment in the hydrogen economy will more than doubled in a year

  • To invest in efficiency and decarbonised enterprise most optimistic outlook for this year

Two-thirds (66%) of senior professionals for oil and gas industry growth in 2020 is full of confidence, compared with 76% in 2019, down 10%, is confidence trough since 2017, 2019 (32%) since the peak of the year.Less than half (46%) of respondents think, compared with 2019, this year there will be more large capital-intensive projects approved, below last year's proportion (67%).

"A new direction, complex options: 2020In the oil and gas industry outlook"The report based on a survey of more than 1000 senior professionals of oil and gas and in-depth interviews to industry executives.The 乐动体育登录tenth year in a row, the report is DNV GL released a year for the future industry point of view, confidence, and evaluation of priorities, and for the next year provided expert analysis of the main challenges and opportunities.

In 2020, capital may not be aggressively into the large oil and gas projects, but firms in the industry value chain this year is expected to increase to make it in the energy transformation to establish long-term position in the field of investment.The survey found, said the organization is actively adapt to a low carbon energy structure from two years ago, 44% of respondents jumped to 60% in 2020.

Although the industry's growth prospects in 2020 is unclear, but the oil and gas industry managers optimistic about its organization will pull through, they can rely on to five years experience of cost effective ability to continue to profit.About 64% of the respondents expected the organization will be able to achieve its profit targets this year (roughly equal to 62% in 2019), nearly half (46%) said that even if the average oil prices below $50 a barrel, the enterprise will still get an acceptable profit.Considering only during the past 15 years (2016) a year of annual average prices below $50 a barrel, the proportion was massive.

Liv a. Hovem, CEO, 乐动体育登录DNV, GL - Oil & Gas
Liv a. Hovem, CEO, 乐动体育登录DNV GL's oil and natural gas

"Industry face of constant uncertainty, increasing complexity and new r乐动体育登录isks, and as the future of the world to A low-carbon energy transformation, we also see industry is to make bold decisions, improve efficiency and long-term challenge," DNV GL Liv, chief executive of oil and gas a. Hovem said."Our study shows that the oil and gas industry has been put on the agenda of the decarbonised core position, though market turmoil and industry growth in 2020 forecast uncertainty, decarbonised industry will continue to be focused."

乐动体育登录DNV GL studies have indicated that the decarburization action of oil and gas companies more than in the past, is expected to increase or maintain the corporate decarburization investment proportion of respondents in just 12 months rose sharply from 54% to 71%.It is important that companies are looking for a variety of ways to achieve this goal, including the implementation of renewable energy diversification, decarburization on oil and gas production, and increase investment to the decarbonization gas such as hydrogen, hydrogen production by electrolysis, renewable energy, or a combination of carbon capture and storage technology for hydrogen production from natural gas).

Plans to increase the percentage of oil and gas companies to invest in renewable energy, increased from 34% in 2019 to 44% in 2020.Offshore wind has led to the field of investment, 63% of the group hopes to increase investment in offshore wind, up from 40% last year.

Industry to increase the hydrogen economy investment intentions more than doubled in a year.42% of respondents said their businesses will increase spending on this aspect in 2020, up from 20% in 2019.

乐动体育登录DNV GL energy transformation in 2019 outlook, points out that the coming decades, will still need to oil and gas in the energy structure, predicts that by 2050, will account for 46% of the world's energy structure, and at present the proportion is 54%.The forecast is beyond the set temperature control of the Paris agreement goals within 1.5 ℃.

"In the industry, more and more people realize that we are not able to sit down and wait for the perfect solution, of a complete decarburization overnight energy systems.In the process of this waiting, industries will have too much carbon dioxide emissions.Therefore, we must start to use our technology for decarbonization of the oil and gas industry, I already have to achieve national and international climate goals."Hovem said.

Nearly a third (32%) of senior professionals in the organization of oil and gas, the cost efficiency will be the top priority, compared with 21% a year earlier.81% of respondents believe that industry needs to develop new operating model to achieve a higher cost efficiency, it is based on the oil prices plunged in 2014, after many obvious cost-cutting measures have been implemented.

Almost all respondents (92%) of the organization in 2020 is expected to increase or maintain digital spending.Those who believe that the organization is digital industry leader of the respondents are more confident about the prospects for its organization, the volatility of oil prices is more, and to seek further investment in energy transformation.