The global oil consumption is expected to reach 100 million barrels per day by 2035, which makes energy investments a tantalizing avenue for qualified investors. Energy production, however, is a dynamic industry and many factors impact prices. Though you can easily find more than a few energy investment companies offering promising energy online investment options, it is important for you to know the factors that affect the market. To help, in this post, we discuss some trends that will shape the oil and gas industry in the year . Take a look.
1. More Infusions by Exploration Companies
Oil exploration companies are set to ramp up their investment targets in 2017. According to a report by Barclays, oil and gas companies will spend 5 percent more on financing oil exploration and production projects in 2017. EY estimates 43 percent PE companies operating in the oil and gas sector to invest substantially on acquiring oil exploration companies, which is a testament of the positive outlook PE companies share about asset valuations, and oil prices.
2. Emergence of New Business Models and Partnerships
Discovering and developing oil and gas fields is time and capital intensive for oil exploration companies. Many firms, therefore, will enter into partnerships with oil field service companies that oversee and operate assets on behalf of oil exploration companies. OFS firms also help their partners with day to day operations, which explains why more oil exploration companies are leveraging the technical expertise of these providers to ensure smooth operation.
3. Increased Focus on Reducing Carbon Footprints
Increased corporate governance and government regulations has forced oil exploration companies to adopt environment friendly production and exploration methods. In 2017, companies will adopt various measures such as recycling used oil, reducing fugitive emissions, reconditioning old valves, and treating wastewater effectively to ensure exploration projects have less of an impact on the environment.
4. Increased Focus on Technological Deployments
Technology will play a major role in oil and gas industry. Companies will invest heavily to develop new applications that will support the back office and other operations. Robotics, for instance, are expected to play a major role in the industry and robots will be used to perform complex tasks such as connecting and repairing fuel pipes. Oil exploration companies will also get into partnerships with technology firms to design and use advanced sensors that can predict oil play breakdowns in advance.
5. Increased Focus on Employee Retention
Employee turnover has long been a struggle for the oil and gas industry. Retaining skilled manpower is a challenge for companies, and they must focus on increasing employee engagement. Some of the steps they can take to achieve this objective is developing formal and informal channels of communication, introducing compressed workweeks, and providing non-monetary incentive to employees.
Energy investment companies must strategize while keeping these trends in mind to provide sustainable returns to their investors, both directly and indirectly. At FIG Tree Capital, we always keep ourselves abreast of the changing market trends and take various steps to make sure our investment partners are always headed towards their ROI goals. To learn more about direct investment opportunities in oil and gas, fill out our contact form or simply call 866-304-9194