3 Trends to Watch in the Oil and Gas Industry in 2024

Last year marked exciting milestones for the energy sector, with the EU Commission welcoming a deal on first-ever EU law to curb methane emissions, along with all the updates and announcements from the United Nations Climate Change Conference in Dubai. These events intersect with mounting investor, public and economic pressure for transparency, all while continuing to meet the global demand for affordable and reliable oil and natural gas. 
 
As the industry gears up for another year of resilience, innovation, and sustainable growth, it’s important to recognize that the future of the oil and gas industry depends not just on meeting energy demand, but the steps taken to meet that demand. While reshaping operations in the world of digital transformations seems like an obvious move, forward-thinking strategies, harnessing the power of Generative Artificial Intelligence (Gen AI), and changing mindsets is what will drive the industry forward.  
 
So, we, at Oil & Gas IQ, have identified 3 trends for oil and gas professionals to watch out for in 2024. While we still expect for last year’s trends to continue to change the landscape, emerging industry concerns call for a newer narrative on the progress and possibility of a sustainable future.  
 
Trend 1: The power of Gen AI 
No longer just a buzzword, the rapid evolution of Gen AI presents transformational opportunities for the oil and gas industry. From immediate cost reduction and enhanced process efficiency to the creation of new revenue streams and the acceleration of innovation within the company, this next frontier of artificial intelligence provides powerful benefits across the value chain in energy production. 
 
As oil and gas companies begin to understand the endless possibilities and applications of Gen AI, the industry can also benefit from addressing cybersecurity challenges, adapting to evolving regulations and ensuring data quality within their operations.  
 
Trend 2: Electrification as the pathway to net-zero 
The process of replacing technologies that use fossil fuels (coal, oil, and natural gas) with technologies that use electricity as a source of energy, electrification offers the industry a ray of hope amidst rising climate concerns. Quite the paradox for oil and gas, but electrification has quickly become a trending theme within the energy transition. 
 
We know that the world will be dependant on oil and gas for years to come, which is why electrifying operations allows for oil and gas to be produced with as low a carbon footprint as possible.  From full-scale electrification of offshore installations to converting hydraulics to electric control systems, there are many ways oil and gas operators can electrify their operations to reduce emissions. 
 
As the industry is so focused on energy security, affordability and sustainability, electrification stands out as the key enabler for decarbonizing oil and gas production as a component of a more sustainable energy mix.  
 
Trend 3: The promising potential of green hydrogen 
As countries look to strengthen energy security and race to meet ambitious net-zero targets, green hydrogen offers a significant promise to help meet global energy demand while contributing to climate action goals. Produced using renewably generated electricity that splits water molecules into hydrogen and oxygen, green hydrogen is expected to be the rising star within the ongoing energy transition. 
 
Countries are setting ambitious hydrogen targets with the US aiming for 10 million tonnes of clean hydrogen to be produced annually by 2030; with this increasing to 20 million by 2040, and 50 million by 2050. Meanwhile, the UK has a target for low-carbon production of 10GW by 2030. In addition to these developments, the EU has also carved a clear path towards a hydrogen-powered future in the form of two delegated Acts under the 2018 Renewable Energy Directive and a provisional political agreement establishing common rules for internal markets in renewables natural gases, and hydrogen. 
 
However, The International Energy Agency’s (IEA) 2023 Global Hydrogen Review concluded that in order to meet climate goals, the growing global demand must focus on ‘green’ production methods and low-emission applications. Furthermore, whilst low-emission hydrogen production is expected to expand exponentially by 2030, costly processes may prove challenging. 

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