By Melvin Onwubuke
Deloitte Consulting, a global consulting and related services firm, announced that the upstream of global oil and gas industry will generate up to $800 billion as a result of reassuring oil prices.
This was disclosed in its 2024, oil and gas industry outlook report.
In the statement, Deloitte emphasized that the energy sector will continue to be influenced significantly by four disruptors according to Thisday.
These disruptors, are Geometric factors; macro-variables such as high interest rates and increasing costs of material; evolving policies and regulations; and emergence of new technologies.
These disruptors can have a serious effect on demand and supply, trade and investment in the industry landscape.
Nevertheless, Deloitte said generally, the industry is projected to have a firm start in 2024, partly due it’s financial strength as well as the increasing oil prices, apart from a further decline in the energy industry.
Deloitte said “This strength of the industry will likely enable it to finance both investments and dividends, and thus support its disciplined capital programme and shareholder-focused strategy.”
“The global upstream industry, for example, is projected to maintain its 2023 hydrocarbon investment level of about $580 billion, an increase of 11 per cent year-over-year and generate over $800 billion in free cash flows in 2024,” it added.
Deloitte pointed out in the report, that the industry financing position, would probably raise the projections of the regulators, investors and other stakeholders, that they may now anticipate continuous progress in emission reduction, increased investments in low carbon energies and amplified returns for stakeholders.
