Important Energy Questions of 2018
There are hundreds of questions that often go unanswered in the oil and gas industry. However, some of them are extremely important to know the answer to. As someone who is interested in gaining more insight into the market, such questions can be eye opening as to whether you would want to pursue a role in the oil and gas industry. Below are some of the biggest questions in oil and gas as of 2018.
1. Is Saudi Arabia stable?
It is known that the Saudi Arabia oil and gas market controls much of the world. It dictates the status of other countries in the region and it is known that the kingdom’s oil exports are mainly directed to Asia. The volumes directed suggest that any volatility will destabilise a market where speculation is rife. It does appear to the global market that Saudi Arabia is in control of the odd and fragile dynamic of their market, however, social and political happenings in the recent years have suggested that real instability is on the edge for the next few months.
2. How rapid can the production of oil from shale rock amount to in the US?
The immense drilling operations being conducted on American soil shows through the increase in global prices over the past six months from outputs in each sector. All the commercially viable activity and drilling has been increasing ever since the beginning of 2018. This would offset most of the current production cuts and would suggest another quota reduction to be implemented or to push prices down.
3. Can economic growth with minimal increases in energy consumption continue in China?
As it is known, China is subject to numerous economic cycles and recessions, so much so that it’s always expected of them every year. Despite this, the achievement in regards to the oil and gas market is commendable and a considerable amount. If this trend continues, the result will limit global demand growth for oil, gas, and coal. Beijing has stated high ambitions for cleaner energy consumption despite the current state of the environment in China.
4. How fast can renewables grow?
Possibly the biggest and most important question in the energy market as of late. The last few years have shown a dramatic reduction in cost of renewables and a large increase in supply. The past year has been nothing but positives for renewable energy and wind energy can finally compete without subsidies. Solar energy thrives and hydro energy has been on a steady increase. The moment for transition is getting closer every year and only time will tell us what’s in store for renewable energy in 2018.