The oil and gas industry has rebounded strongly throughout 2021, with oil prices reaching their highest levels in six years. While the industry’s recovery is better than expected, uncertainty remains over market dynamics in the coming year. Our 2022 outlook explores five trends that will shape the path forward for oil and gas companies.

A period of transformation

As we move into 2022, many oil and gas (O&G) companies are looking to reinvent themselves by practicing capital discipline, focusing on financial health, committing to climate change, and transforming business models. The positivity of such changes is reflected in our survey, where nearly two-thirds of O&G executives state they’re highly positive about strategic changes made by their organizations.

The journey of transformation has just begun for the industry, and simply managing or riding oil price cycles aren’t options anymore. Over the next 12 to 18 months, O&G strategists should:

• Streamline and optimize their resource portfolios
• Embrace and develop smart goals for the energy transition
• Attract, train, and retain employees in a tight labor market
• Come to terms with additional environmental, social, and governance (ESG) requirements

Purpose-driven, tech-enabled, and human-powered organizations with smart interim goals and progressive communication and disclosure strategies can make it happen. Our 2022 oil and gas industry outlook explores five trends, from M&A activity to fuel retailing, that will likely influence the direction of the industry over the next 12 months.