Global oil gas market will increase to US 5.87 trillion in 2021

The global oil gas market is expected to increase $4.67745 trillion in 2020 to $5.87013 trillion in 2021, with a compound annual growth rate of 25.5%. Novel coronavirus pneumonia is the main reason for the growth. Previously, the epidemic led to restrictive travel measures, which brought challenges to the operation of oil companies. It is expected that by 2025, the global oil gas market will reach US $7.42502 trillion, with a compound annual growth rate of 6%. Asia Pacific region is the world's largest oil gas market, accounting for 33% of the global oil gas market in 2020; North America is the second largest oil gas market in the world, accounting for 19% of the global oil gas market in 2020.

Artificial intelligence technology promotes the development of oil gas market. Oil gas companies are studying big data analysis to improve decision-making ability increase profits. Through a large number of sensors placed on the drilling platform, oil gas companies collect a large amount of raw data related to refineries, pipelines other infrastructure. Through big data analysis, some models can be explored, which can quickly respond to unnecessary changes potential defects, thus saving costs. ExxonMobil shell have been investing more in AI to have a centralized data management approach support data integration across multiple applications.

Oil price volatility puts pressure on the oil gas market, as a sharp fall rise in oil prices can have a negative impact on government consumer spending. The decline in oil prices has a negative impact on the government expenditure of Saudi Arabia, Nigeria UAE, which mainly rely on the revenue of crude oil exports; The sharp rise in oil prices leads to inflation, oil importing countries such as India will have fiscal deficits.

Saudi government will cut spending 1.05 trillion rials (about 1.82 trillion yuan) in 2019 to 955billion Riyals in 2022, due to a sharp drop in oil export revenue.

Low interest rates encourage investment drive demand. Historically, the low interest rates in most developed countries have had a positive impact on the oil gas industry. For example, the ECB will reduce the bank deposit rate to - 0.5% in 2019 to encourage lending. This creates a cheap flow of money for investment, encourages lending, curbs savings, helps drive spending. Oil gas companies can borrow more money to carry out process improvement expansion projects, which promotes the prosperity development of oil gas market in this period.

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Source: International Petroleum Network