Energy Transition and the Midterm Outlook for Oil & Gas Markets

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Researched by Industrial Info Resources (Sugar Land, Texas)--Well into this year's second quarter, there is much more optimism regarding overall oil and gas commodity demand, but will this necessarily lead to more capital investments being brought back into the upstream sector? And if so, what will the composition of this spending be, and will this be uniform or will there be divergence in different markets, leading to some breakaway geographies and sectors?

These are questions posed by Shaheen Chohan, Industrial Info's vice president of research for Global Analytics, in his latest "Thought for the Day" video.

Click on the image at right to see Shaheen's "Thought for the Day" video, the second in a series that delves into the status of today's global energy industry.

Energy producers have sharply curtailed their upstream oil capital expenditures during the past two years in the wake of one of the largest demand reductions in history, Chohan noted. With their aging operational reserves and the announced shift by many oil majors away from hydrocarbons and toward green technologies, Chohan questioned whether new capacity would keep pace with demand, or would the situation create the need for more capital investments.

On the natural gas side, demand growth continues to provide strong support for gas infrastructure developments across the supply chain from production to pipelines and storage, Chohan said, noting Industrial Info's geo-mapping tools show nearly 550 gigawatts of new gas-fired power generation capacity at various stages of development across the globe.

Still, he asked, with green technologies on the rise, should the market expect to see gas's competitive edge start to erode?

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.