The current gas and oil prices are lower than they have been in several years, and part of that is due to a combination of overabundance and limited demand. However, despite the current low prices, most experts agree that the coming years will see a natural rebound, as well as an increased demand. As the world population grows, so does the need for more energy. When you look at the demand for energy over the last four decades, it is easy to see that the amount of energy consumed is always rising. This trend is likely to continue.
In the following four decades, the population will grow and the expected demand for energy could increase by another 30% or so. There is simply no way to cater to the needs to all of those additional people without more energy.
What does this mean for the oil and gas industry? It means the companies need to look toward the future as much as possible. Despite the current slowdown, they cannot let that derail them from their job. They need to continue to search for new reserves and pockets of gas and oil around the world. Currently, a number of very promising spots are being discovered in the Arctic, the North Sea, and other areas. It is important to find ways to settle political turmoil and rivalries in order to work together and extract the oil. Of course, this is easier said than done.
In addition to continuing the search for more oil deposits, it is also important to continue investing in the development of new technologies and equipment. Better equipment can help to improve the chance of finding oil, and it can certainly make the process of extraction easier.
It is very important that rather than waiting for the demand to rise, and then trying to meet it, that the country and the world’s oil producers as a whole, start laying all of the groundwork now. By having the infrastructure, equipment, and plans ready to go over the course of the next few decades, it will be easier to meet the rising demand for oil and gas. The increase in domestically produced oil and gas is a good start, and hopefully the lowered prices will not hurt the US producers so much that they have to start cutting jobs. The prices will ideally reach a nice balance where the consumers are able to save while the oil companies are still able to make a profit.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughnecks and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.