Hard fact to trust: Future of oil & gas
We have often heard that the end of oil is near but it is not really turning out that way. What is the future of oil & gas in the next 20 years? At the headquarters of OPEC, the organization of Petroleum countries in Vienna, the director of Research Dr Omar Abdul Hamid, has assured that these predictions about the end of oil & gas have been exaggerated and there are plenty of resources in the ground to support the needs of demand. Around 91 million barrels every single day that is demanded according to the numbers last year, moving forward to the long-term by 2040, we continue to anticipate 111 million barrels demanded oil of per day.
Some people say there are plenty of alternatives for oil, so is it possible people would just lose their interest in oil long before it runs out. The OPEC director hereby says, with the historical perspective on the issue a call, for example, was dominant before oil. When oil came into the markets as a reliable source of energy, we continue to live with the demand for coal as well as a growing demand for gas. One of the reasons why for example, oil was continued to be at least in our forecast, a dominant source of energy specifically, in transportation because there is a continuous investment into the combustion engine by the year, 2035. If you combine the expected portion coal, oil as well as gas it would be roughly 80% with the comparable percentages among the three.
The higher price levels that were maintained in at least the last few years might breed some degree of complacency that allows relaxing in terms of costs, to resort back to practices and plug-in innovations and technologies that will help better control the cost of your operations. It is the wrong perception about the industry not being innovative; one can sustain cultures that might at the first glance appear to be contradictory. The industry does value specifications, robustness and reliability from a safety prospective because it has to be responsible towards the community as well at the same token under the right controlled environments to foster the developments and testing of new technologies and gradually introduce them into the operations as long as to achieve a certain degree of reliability and control risk management before coming in mainstream.
Technology developers definitely play a very significant role like the Siemens and other technology developers, are very important to enable the industry to improve in terms of the consumption of its own energy becoming more efficient. One of the trends in terms of improving efficiency is to electrify and it is important to continue to invest in these electrical options if they can demonstrate reliably there is a significant improvement in efficiency operators invested into infrastructure that they found reliable which will take some effort in order to convince them to move to the next phase of technologies that can make them more efficient. However, the inconveniences that are associated with the current electric vehicles will have to be addressed the range with storage issues in the vehicle itself having the right infrastructure to provide with the necessary electrification while you plug-in at home or find the station to recharge or exchange the batteries. For all this reason, being a wonderful source of energy, transportation will continue to be dominated by liquid fuels.