Outlook for the oil and gas industry 2020

1: Confidence stalls; Industry balances diverse priorities

The oil and gas industry enters the new decade with a full agenda. Organizations across the value chain face the pressure of several evolving threats and opportunities, while navigating current market volatility. Most of the industry must work to balance short-term tactics with decarbonization and business transformation to ensure long-term competitiveness.

In our last industry outlook (for 2019), 76% of senior oil and gas professionals were confident about industry growth – more than double the figure from 2017. For 2020, however, confidence in industry growth has stalled. Our latest survey finds 66% of respondents confident of industry growth in the year ahead. This is still a strong majority, confirming the new-found resilience to lower prices and volatile markets that we reported last year. However, looking ahead to 2020, enough doubt has crept in to correct the upward trend in industry confidence.

Nevertheless, the story beneath this weaker optimism holds several positives for the oil and gas industry. While there is persistent uncertainty and growing complexity, the industry is also taking bold decisions, building greater efficiencies, and rising to long-term challenges as the world pivots to a lower-carbon energy future.