Low oil prices have a strong impact on the industry but also contain opportunities. The oil companies that survive today will surely thrive when oil prices rebound in the future, with low oil prices forcing oil companies to reform and to focus on reducing costs and increasing efficiency, which means they have to introduce new technologies and optimize production process.
Technological innovation leads the industry change
It has become harder to produce oil and gas, and most of the easy-to-exploit oil has been developed. New technologies make the field more automated and analyze data more intelligently. In the future, more valves will be opened and closed by the machine rather than manually, and even more, the subject that determines the valve opening and closing will also be turned into machine. Maybe one day, a helicopter to the offshore oil platform is no longer a "routine", and it would be difficult to see it.
Siemens has acquired Rolls-Royce's airline turbine business and acquired Dresser-Rand, the industry's leading partner.
The future development trend of oil field technology is also gradually formed.
Industry status supported by consumption
Will oil prices stay low for the next few decades? No one can give a very accurate prediction. But the history of the oil and gas industry tells us that no matter the price of oil rises or falls, the growth of demand is surprisingly stable. Whether it is above 140 dollars or less than 20 dollars, the annual growth of global energy consumption is between one percent and two percent. In terms of consumption growth, oil and gas will continue to remain very important for at least the next few decades.