BDO's Energy 2020 Vision: The Near Future of Oil & Gas
02 February 2018
Ready or not, the global oil & gas industry must contend with an ever-changing ‘normal’.
It’s the confluence of trends—not just the new pricing paradigm, but rapid growth in renewables along with accelerating technology advancements—that is reshaping the industry. The energy company of the future is one that has successfully figured out how to cut costs, enhance operational efficiencies through digital and technological transformation, and diversify its portfolio to include alternative energy sources.
In our Energy 2020 Vision report, BDO’s Natural Resources leaders from around the world look towards the future to help oil & gas companies anticipate and plan for the challenges and opportunities ahead; ultimately what do oil & gas companies need to know to succeed.
The global predictions presented in this report are based on research and collective input from BDO’s Natural Resources leaders around the world. In addition, our teams across the UK, Australia, Canada, the United States and Saudi Arabia have shared their regional predictions for the industry in their markets.
You can also read our global predictions for Mining.
BDO UK's 2020 vision for oil & gas
- Shale Reserves: By 2020, the UK will have commercialised its substantial shale gas reserves and will be energy self-sufficient.
- Fracking: By 2020, the UK will have developed the most robust planning, licensing, and operating regime for fracking in the world.
- Security: the UK national grid will be the target of a major cyberattack by 2020.
- Investment: By 2020, investors will have diversified their investment portfolios in the oil & gas sector.
- Digital Developments: By 2020, robots and other technologies will replace some of the energy labour force.
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Summarizing BDO's global 2020 vision for oil & gas
- Oil Prices: By 2020, low oil prices—expected to remain at or below the $60 per barrel mark—will spur Gulf Cooperation Council countries to diversify their energy mix within the power sector using auctions to subsidize renewable energy projects.
- Cybersecurity: By 2020, at least five countries will see foreign hackers take all or part of their national energy grid offline through Permanent Denial of Service (PDoS) attacks.
- Global Energy Trade: By 2020, the growth of LNG imports and solar power will bring electricity to four in five African people.
- Investment in Tech: While overall spending on R&D may decline, most of the spending that does occur will go towards technologies that enhance exploration and production (E&P) efficiencies.
- Data Democratisation: By 2020, the average E&P company will make use of 10 percent of its big data—up significantly from today, but nowhere near full potential.
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