Many oil and gas (O&G) companies are looking to reinvent themselves by practicing capital discipline, focusing on financial health, committing to climate change, and transforming business models. The positivity of such changes is reflected in our survey, where nearly two-thirds of O&G executives state they’re highly positive about strategic changes made by their organizations.

The transformation journey has just begun for the industry, and managing or riding oil price cycles isn’t an option. Over the next 12 to 18 months, O&G strategists should:

• Streamline and optimize their resource portfolios
• Embrace and develop smart goals for the energy transition
• Attract, train, and retain employees in a tight labor market
• Come to terms with additional environmental, social, and governance (ESG) requirements

Purpose-driven, tech-enabled, and human-powered organizations with smart interim goals and progressive communication and disclosure strategies can make it happen. Our 2022 oil and gas industry outlook explores five trends, from M&A activity to fuel retailing, that will likely influence the direction of the industry over the next 12 months.

Many oil and gas (O&G) companies are looking to reinvent themselves by practicing capital discipline, focusing on financial health, committing to climate change, and transforming business models. The positivity of such changes is reflected in our survey, where nearly two-thirds of O&G executives state they’re highly positive about strategic changes made by their organizations.

The transformation journey has just begun for the industry, and managing or riding oil price cycles isn’t an option. Over the next 12 to 18 months, O&G strategists should:

• Streamline and optimize their resource portfolios
• Embrace and develop smart goals for the energy transition
• Attract, train, and retain employees in a tight labor market
• Come to terms with additional environmental, social, and governance (ESG) requirements

Purpose-driven, tech-enabled, and human-powered organizations with smart interim goals and progressive communication and disclosure strategies can make it happen. Our 2022 oil and gas industry outlook explores five trends, from M&A activity to fuel retailing, that will likely influence the direction of the industry over the next 12 months.

Regulatory Challenges

“We covered the ongoing regulatory problems that oil and gas companies must handle with heightened scrutiny on environmental, social, and governance (ESG) transparency. The Environmental Protection Agency (EPA) released a new methane rule that will make oil and gas companies more accurately monitor and repair methane leaks from new and existing wells and pipelines. While this is a step in the right direction to help curve greenhouse emissions, these new regulations on oil and gas operators can be costly. In addition, they will directly impact well site owners, especially those with older, marginal wells.

 The energy sector has experienced significant challenges concerning prices, demand, supply, investment, and various other issues.