Oil & Gas Trends to Watch For in 2019
The Oil & Gas industry in the U.S. is experiencing tremendous growth. Crude oil, petroleum, and natural gas production continue to expand, generating thousands of jobs right here in our country. But where are these jobs coming from? How are we producing this much oil & gas right here in our own country? Here are three trends to look out for in the oil & gas industry for the rest of 2019 and beyond.
Oil production continues to climb
Last year, the United States consumed 7.5 billion barrels of petroleum products. If you break that down, that’s a daily average of 20.5 million barrels of petroleum per day. That’s a lot of oil! But what’s fascinating is the resurgence of our nation’s oil production over the last decade. Over the last eight years, U.S. oil production jumped from under 6 million barrels per day to an outstanding 12 million barrels per day.
The Permian Basin is booming
In February of 2018, the United States surpassed Saudi Arabia in the production of crude oil for the first time in over two decades. And in September of 2018, the U.S. (briefly) became the world’s largest producer of crude oil for the first time since 1973 by surpassing Russia. This is mostly thanks to the Permian Basin in West Texas and Southeastern New Mexico. In 2018, the Permian Basin produced 3.2 million barrels of oil each day. Today, production is now over 4 million barrels per day, and by 2022, that production will grow to a whopping 7 million barrels per day.
Thousands of workers are flocking to the Permian for new job opportunities and higher paychecks. Currently, there is a bottleneck in pipeline capacity for the billions of gallons the Permian is producing. As a result, companies are working tirelessly to construct new pipelines to continue to facilitate the projected growth of the Permian. The Permian also pumps out a large chunk of the country’s natural gas. In 2018, the region produced 10 billion cubic feet of natural gas per day (11 percent of the country’s total output). And by 2025, that production is projected to more than double. The Permian currently has two significant pipelines underway, and a third one just got the green light earlier this summer to begin construction. As a result, thousands of workers are flocking to the south-central U.S. for new opportunities.
Natural gas is expected to keep growing
Natural gas supplies 22 percent of all energy consumption worldwide. It also accounts for nearly one-fourth of electricity generation. Natural gas is a very versatile fuel, and its use continues to grow as we place a more significant emphasis on environmental consciousness.
Natural gas and renewable energies are expected to increase over the next several decades. As of 2017, energy demand for natural gas was 22 percent of total energy demand, and renewables were only 10 percent of total demand. However, in 2040, natural gas demand is estimated to increase to 25 percent, and natural gas will increase to 17 percent. In other words, the world as a whole is shifting their attention to cleaner energy, causing the creation of new jobs in the oil & gas industry.
Get a hand navigating this busy industry
The oil & gas industry is growing, with no signs of slowing down over the years to come. As a result, hiring in this industry hasn’t been this strong in over three decades. If your team needs help attracting and retaining talent, give us a shout. We have a dedicated team of recruiters who specialize in the oil & gas industry. And if you’re pursuing a career in the Permian or someplace else in the industry, check out our job board! We have dozens of oil & gas jobs that you won’t want to miss.