The Energy Industry
The oil and gas supplier industry is greatly influenced by the world energy industry.
The energy industry comprises of fossil fuels, renewable energy and alternative sources, that power the modern world. As economies develop and the population of the world keeps rising, the demand for energy continues to grow steadily over the years. The most popular sources of energy are fossil fuels, such as oil, gas and coal, though recent years have seen a significant increase in renewable energy such as solar, wind and hydroelectricity.
However, despite immediate efforts for an energy transition into renewable energy, energy forecasts show the energy market dominated by fossil fuels even past 2050.
The Oil and Gas Industry Outlook
According to the IEA, the current demand for fossil fuels makes up over 66% of the total world energy demand. After several years of decline, exacerbated by COVID-19 and the sharp decline in energy demand, 2022 marked a turning point for the oil and gas industry, with economic activity redoubling its efforts to make up for the pandemic.
Further aided by high prices and cash discipline, the oil and gas industry entered 2023 with record profits and positive forecasts of steady industry growth, especially in the offshore sector.
Oil and Gas Suppliers/Contractors
Rystad Energy reports that the global oil and gas supplier industry is set to grow to $1 trillion in 2025 due to further energy investments to feed ever-growing demand. The report details that all segments are set to grow but will be led by suppliers providing equipment, materials, operations and maintenance services.
Though there is a risk of another downturn cycle after 2025, this can be mitigated by oil and gas suppliers/contractors by diversifying their portfolios into other energy markets, such as offshore drilling, biofuels, geothermal energy, carbon capture and offshore wind.
What does this mean for Vivo Asia Engineering & Trading?
Vivo Asia Engineering & Trading is a Telecom, IT and ELV systems integrator. Our biggest clients are from the FPSO industry, to whom we supply reliable systems and engineering services.
The projected 7 years of industry growth bring fresh opportunities and new prospects for the expert engineering services and reliable systems we offer. Vivo Asia Engineering & Trading hopes to grow our presence in the industry globally, diversifying our markets in order to remain relevant.