Thematic research: Top 20 Oil & Gas Themes 2021

Thematic research ecosystem

Companies who invest in the right themes become success stories; those who miss the big themes end up as failures. Given that so many themes are disruptive, it is very easy to be blindsided by industry outsiders who invade your sector.

So, to help our clients gain a competitive advantage, we have developed GlobalData’s thematic research ecosystem, a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.

Highlighting the themes:

• Macroeconomic themes: According to International Energy Agency (IEA), global crude oil demand, which fell around 9 percent in 2020, is expected to rise by 5.5 million barrels per day (BPD) this year. The availability of COVID-19 vaccines has somewhat improved the prospects for fuel consumption, which will support crude oil demand. However, the continued surge in new infections across Europe and the US is prompting countries to curb travel, thereby affecting fuel demand. On the other hand, gas consumption is projected to regain 2019 levels as demand for power generation remains firm

• Industry themes: Many prominent oil and gas companies, including BP, Total, Equinor, and Royal Dutch Shell, are actively pursuing low carbon projects in wind and solar power generation, and biofuels. This diversification into renewables is an effort to offset the potential risks to their traditional businesses as fossil fuel demand slows. It would also enable companies to lower their overall carbon intensity. To push ahead with this diversification, some oil companies may be required to reallocate a portion of their capital away from the oil and gas sector. This may hamper oil and gas production growth in the long term. Nevertheless, hydrocarbons are likely to remain the mainstay of revenue generation for oil and gas companies, at least for this decade

• Technology themes: Autonomous robots are gaining increased attention in the industry, especially in the offshore domain. The pandemic aggravated the challenges in ensuring labor safety on offshore platforms while maintaining desired production levels. Autonomous robots can prove beneficial in negotiating these challenges. Although still under development, these robots can perform an array of tasks, including opening and shutting valves, deploying pigs for pipeline inspection, and taking measurements from field devices. North Sea operators Total and Equinor have lined up further trials on robotics technologies in 2021 to enhance their autonomous capabilities (level 4 autonomy). This could potentially enable robots to work alongside humans in the coming years.

Download our free report for more detailed insights.