Four trends driving the oil and gas industry in 2022 and beyond As we advance into the third month of 2022, it becomes increasingly significant to note that this year and the years to come will see major shifts in the oil and gas industry. Many of these changes will be seen in changes in paradigm of the marketplace, with the capital market becoming increasingly hesitant in investing in oil and gas. Additional changes are likely to be seen in an offbalance between the government, investor and consumer perceptions on the speed of replacement for these products. The oil and gas industry during the previous years suffered major blows from the ongoing Coronavirus pandemic, dealing with disruptions of supply chain to significant lack of demand. However, as the world moves into the post pandemic era, the oil and gas industry can be set to witness an upward rise in trends in the coming years. In 2022 and the years beyond, here are four trends that seem to be driving the oil and gas industry.

1. The need for reliable and affordable energy

Despite being in the 21st century, many around the world now more than ever need reliable and affordable energy. With the Coronavirus pandemic severely affecting the economies around the globe, many growing populations were left without affordable and reliable energy. The oil and gas industry is now under severe pressure from both the people and environmentalists, with fuel prices skyrocketing due to decreases in demand and disruptions to supply chains. Additionally, the need for oil and gas companies to report and reduce their carbon footprint has cost the industry trillions of dollars. However, fossil fuels are still widely used. And while the shift towards renewable energy is occurring, non-renewable energy sources are still used at scale, and until these are displaced the demand for oil and gas will continue to grow.

2. Response to environmental concerns

Probably one of the most significant trends to be seen in 2022, will be the oil and gas industry's response to the ongoing environmental, social and governance imperative. The response is predicted to go one of three ways, and the choices organizations in the industry make will at large define their strategies going forward into the future. This means the returns and valuations in the short-term rely on their response to climate change.

Most companies in the oil and gas industry will see this as an opportunity to gain their competitive advantage. Thus, investing to create value based on their strategy, while others may view this through an entirely digital lens. Regardless, oil and gas companies are moving towards a proactive and digital era, where monitoring carbon emissions will no longer be enough and many will need to move into sustainable and renewable energy sources. 3. Financial discipline and access to capital

The defining factor of the future success of the oil and gas industry lies in the hands of their access to capital. With the oil and gas industry walking a tight rope, balancing the environmental needs with the growing demand whilst maintaining fiscal discipline, access to capital becomes a vital factor in determining the companies' success. Capital providers now more than ever are aware of the sustainability risk. With many keeping an eye on their client's carbon emissions and environmental impact. Additionally they are also aware of the funding needed for energy transition, however, many capital providers are still unsure of the realistic level of funding needed to meet the mid-century emission targets. 4. Oil and gas M&A opportunities With increasing pressure from all sides, companies in the oil and gas industry will be forced to take a closer look at their portfolios. Thus, leading to an increase of portfolio rebalancing and an increase in transaction activity. Furthermore, with the declining demand and failing economics many publicly traded companies would have exhausted their assets. This leaves rooms for the wealthy private players to step in. These companies will aim to cater to the private investors by moving towards sustainable energy while diversifying their portfolios. Many companies are predicted to increase their investments in energy transition in this coming year.

Winson oil

Winson oil which was founded by Winson Rodrigues in the 70s has earned its title as one of the major leading energy trading companies in Asia. With years of experience in the oil and gas industry, Winson Oil is no stranger to trends. One of their key beliefs as an organisation is that taking risks is vital to nurture creativity and thus, be the driving force behind change. Additionally, Winson oil motivates their employees to think as leaders while encouraging unique ideas thus setting them apart from other industry competitors. Thus, change for Winson Oil will not be a ordeal but a challenge, in which they will embrace with creativity and innovation!