2022 Predictions for the Oil Industry

Predicting the oil and gas markets can be tough. A big part of the challenge in figuring out the future of oil and gas availability is the fact that these are natural resources that can be affected by all kinds of events, including unforeseen weather events, unpredictable regional and national struggles, and more.

Through the use of oil and gas market analytics software, however, professionals in the oil and natural gas industries are able to have a better sense of where production and supplies numbers are headed. Below are some predictions for the oil industry into 2022 according to the United States Energy Information Administration:

Falling Crude Prices

Throughout 2020 and 2021, Covid-19 played a huge role in how oil and natural gas were produced. Many refineries were operating at a limited capacity at various times throughout both years, and production sites also had to slow extraction and transport in some instances. All of this was taking place while various parts of the country and the world went into and out of lockdown and restricted operating conditions.

Heading into 2022 and 2023, oil and gas market analytics software models show that the price of crude is expected to drop as operations in these and other sectors return to normal. One factor to keep an eye on in this case is the work-from-home shift that has taken place and is currently taking place as many business owners have begun to recognize the value of allowing employees to work remotely.

The Situation in Ukraine

Another interesting factor to watch in 2022 is how the situation in Ukraine will play out. In early 2022, Russia invaded Ukraine, and among other reasons for the conflict, oil exports from Russia into Europe have played a part. If this conflict continues or gets worse, destabilization of Eastern European oil exports could occur, leading to global shifts in production, demand, and pricing.

The United States is expected to also see higher gas prices as a result of this conflict. How long higher prices will last will depend on the outcome of the situation and what alternatives exist.

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