Among the many natural resources in the U.S., oil and gas remain as the most important. In fact, the country is the third biggest producer of these resources around the world. Moreover, a study by the American Petroleum Institute (API) revealed that the industry’s infrastructure would contribute almost $2 trillion to the U.S. GDP in 2035.
The year 2035, however, is still far off. For the players in the industry, what can they expect in 2018?
1. The midstream sector is booming.
Companies involved in the processing, storage, and transport of oil and gas should consider midstream marketing and other similar strategies seriously. Among the three components of the industry, this one could be the most significant gainer.
According to the Dirty Little Secrets report, cash flow within this subsector will be more than $7 billion. That’s a growth of over 14% than in 2017. It also revealed that almost 61% of the companies, which are covered by the report, would outshine the market forecast.
2. The country needs to invest more in the upstream.
The U.S. is also poised to be the leader in oil and gas export — not only in 2018, but over the next five years. It is the forecast of the International Energy Agency that by 2023, the country should be delivering five million barrels daily across the globe.
While the midstream market is ready, the upstream may need some support. The government, in both the state and federal levels, should therefore increase its investment in infrastructure. Otherwise, the supply will become tight. It may even struggle to compete with other major exporters, such as Canada and Norway.
3. The upstream market may provide more job opportunities.
Despite the possible decline of supply due to the lack of infrastructure, many people in the industry still believe that the upstream market will provide the most job opportunities. At least 46% of the respondents believe so, according to a survey conducted by Rigzone. About 16% said that employment would be in the downstream sector. It’s slightly lower than the percentage of people who think jobs are few and far between in all of the segments.
The past few years were difficult for the industry. Although it’s still not in its pristine state, the positive news makes everyone hopeful — that it can be worth celebrating.