After a shocking 2020, these oil insights are our best guess. Our industry has had to adjust and readjust to a very different world since the coronavirus pandemic.
With elections over and a new administration transitioning into action, more changes are on the way. Below are seven oil insights in 2021.
1. Fracking is in Danger
Fracking has been a controversial topic in environmental and energy circles for over a decade. Experts have been debating risk-benefit assessment results to force changes that may not be needed.
However, we believe fracking will officially be on the chopping block next year. Both offshore fracking and fracking on federal grounds are in the democratic hot-seat and may finally have their day in court.
2. Oil Consumption will Grow
As Covid restrictions relax, especially with a vaccine now being administered, we anticipate oil consumption to increase. Not only will people be ‘hurrying’ to get back to their normal lifestyle, but the stir-crazy population cooped up for too long will make plans to catch up on traveling. More road trips, flights, and cruises will be taken in 2021. Manufacturing facilities will also get back to work, and, at least in the short-term, consumption patterns will return to previous rates.
3. Green Energy is Still the Future
Even while consumer habits return to their norms, we predict a heightened focus on green energy as a central goal. Green energy will be the key to sustaining the safe, stimulating environments everyone has sorely missed during the quarantine.
4. Flaring Requirements will be More Strict
For similar reasons, we’ve seen a movement towards stricter flaring regulations. After positive environmental changes due to a slowdown in industrial production, as well as increasing evidence of the detrimental effects of gas flaring, more h2s will need to be removed.
5. Well Count will Drop
In 2021, companies will focus on wells that produce. As sustainable practices move from fringe-behavior to expected behavior, consumers are shifting their focus from what changes they can make in their day-to-day choices towards supporting companies that are making those same, future-focused choices.
Prioritizing drilling their best wells, rather than adding new ones, will lower the rig count, and will ensure the survival of their business in a market that is becoming more conscientious every day.
6. Innovation will be Necessary
Small choices to redirect efforts towards more environmentally-friendly projects are just a tiny step.
Companies who want to get ahead will start to make innovative choices to help them stand apart and ensure that their business won’t dry up.
7. We’re Still Optimistic
As our final oil insight, we’re looking at the positives. Oil and gas will rebound. We have good reason to believe this will be the case. Not only does this vaccine ensure individuals will be returning to work and normal consumption levels relatively soon, but larger industrial organizations are opening their doors again.
Increased domestic travel is sure to boost oil and gas, as those unsure about traveling to other countries will satisfy their adventure-needs by exploring areas of the United States. Finally, with a return to international travel, we strongly believe that those who hadn’t been brave enough to travel to a new country before will have a new perspective post-covid.
What are Your Oil Insights?
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