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Articles February 7, 2024

Oil and Gas Industry Trends 2024: Embracing Technology to Increase Production, Improve Efficiencies, and Reduce Emissions


The oil and gas industry has always been subject to dynamic shifts and evolving trends with supply and cost variables, geopolitical climate shifts, and persistent policy changes. In 2024, several key trends are expected to significantly impact the industry, including the influence of renewable energy, digital transformation, sustainability initiatives, and continued competition for limited resources. 

See below for a few highlights from our 2024 oil and gas trends and click the link to read the full report.

Download the 2024 Oil and Gas Trends Report

In 2023, the industry experienced a wave of mergers and acquisitions (M&A) as many companies sought to enter the Permian Basin and expand into renewables. M&A deals in the Permian Basin exceeded $100 billion in 2023, the largest being Chevron’s acquisition of Hess for $53 billion, Exxon’s acquisition of Pioneer for $60 billion, and Oxy’s acquisition of CrownRock for $12 billion at the end of the year. 2024 started with news of a merger between SouthWestern Energy and Chesapeake Energy for $7.4 billion in stock, creating a $17 billion company. While there will be room for further deals in 2024, the number of such transactions is expected to decline, given that many major players have already made significant investments.

The industry is well positioned for growth in 2024, with several factors driving demand:

A Recovering Economy

The global economy’s ongoing recovery from the effects of the COVID-19 pandemic is expected to fuel increased demand for oil and gas. As economic activities rebound, energy consumption, particularly in transportation, manufacturing, and construction sectors, is likely to surge.

A Growing Industry

Expanding industrial activities, especially in emerging markets, will increase the demand for oil and gas. Industries such as petrochemicals, plastics, and manufacturing heavily rely on hydrocarbons as feedstock and energy sources, bolstering demand.

The Surge in Petrochemicals

Oil demand is closely linked to the transportation sector, including road, air, and maritime transport. While we expect travel to continue to normalize following a surge post- pandemic, there will be an increase in the consumption of petroleum-based fuels driven by the demand for petrochemicals. According to the International Energy Agency, this will account for over a third of the growth in oil demand by 2030 and nearly half by 2050, ahead of trucks, aviation, and shipping.

Meeting Emerging Needs

Growing populations and rising standards of living in developing economies will fuel increased energy consumption, driving demand for oil and gas to meet the needs
of expanding urban centers, industries, and infrastructure development. Without outside investment, these developing economies cannot invest in clean energy and will continue to rely on traditional sources to keep up with growing demand.

Executive Summary

Heading into 2024, we see six industry trends that will require technology-focused considerations by organizations. By staying adaptable and forward-thinking, industry players can seize the opportunities presented by industry trends and position themselves for long-term success in a rapidly evolving global energy market.

Metric Ton Levy, 2024 - $900, 2025 - $1,500

The oil and gas industry is transitioning towards renewable energy sources, driven by climate change concerns and supported by government incentives, leading to investments in low-carbon technologies, carbon capture initiatives, and the adoption of Industrial Internet of Things (IIoT) for emissions monitoring and compliance.

Digital transformation, driven by technologies like AI, ML, and IIoT, will revolutionize the oil and gas industry in 2024, optimizing operations, improving safety, and enhancing efficiency through data integration, automation, and advanced analytics.

Geopolitical challenges and market volatility require robust supply chains, risk management strategies, automation, predictive analytics, and scenario planning to navigate uncertainties, optimize operations, and seize new market opportunities

As emerging economies in regions like Asia and Africa continue to grow, the oil and gas industry will experience increased demand, prompting companies to expand their operations in these markets, prioritize sustainable resource extraction, and invest in renewable energy solutions and advanced technologies to support responsible growth and meet evolving energy needs.

In 2024, the oil and gas industry will place increased emphasis on emissions reduction, ESG considerations, and safety through the adoption of advanced technologies like drones, sensors, data analytics, automation, virtual reality, and robotics, while also prioritizing community engagement and attracting investors through strong ESG performance.

In 2024, the oil and gas industry will focus on realizing the value and synergies from major transactions executed in 2023, with successful companies prioritizing the rapid implementation of Master Data Management (MDM) practices to consolidate and harmonize critical business data, streamline processes, and achieve operational efficiencies, ensuring they are well-positioned and meet shareholder expectations.

To read our full 2024 predictions for the oil and gas industry, download the report below.

Download the 2024 Oil and Gas Trends Report

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Mark Fitzgerald

Mark Fitzgerald

Principal, Industrial & Resources Portfolio

As a Portfolio Group Lead, Mark partners with Energy, Logistics & Transportation, and Manufacturing & Materials industry clients and CapTech teams to create measurable business value through technology-centered solutions. In non-consulting speak, he makes sure the money clients spend on technology is worth it.

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Whitney Olmsted

Managing Director

As a Senior Account Executive, Whitney leads CapTech teams in delivering a wide spectrum of solutions for our Natural Resources Clients. She partners with clients to understand industry-specific challenges and drive technology solutions to deliver strong ROI. Whitney draws on nearly three decades of experience in technology and strategy to lead teams that implement innovative solutions to deliver real-world value for our clients.

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Nathan Tatum

Nathan Tatum

Managing Director

Nathan is a managing director with 13 years of IT consulting experience. His primary focus is the successful delivery of data integration and visualization projects across modern data architectures, focusing on streaming applications solving complex and ambiguous business problems.

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