The oil and gas industry is experiencing a significant transformation as global demand for natural gas is set to rise while oil demand is expected to ease over the long term, according to a report by Goldman Sachs Research.
Goldman Sachs’ 21st annual analysis of the energy sector, titled Top Projects, forecasts a more than 50% increase in investments in liquefied natural gas (LNG) by 2029. This surge in investment is projected to expand the global supply of LNG by 80% by 2030, potentially resolving the ongoing European energy crisis. The expansion will be largely driven by new projects in Qatar and North America.
The report highlights a shifting landscape in global energy demand, with the gas market anticipated to grow by 50% over the next five years. In contrast, oil investments appear to be reaching their peak in non-OPEC countries. Despite this, oil companies could continue to deliver attractive returns for shareholders and strong per-share growth, provided oil prices remain within the $80 to $90 range.
As the industry adjusts to these changes, further consolidation through mergers and acquisitions is expected, driven by the decline in oil demand.
This comprehensive analysis underscores a pivotal moment for the global energy sector, with a clear shift towards natural gas and the strategic investments necessary to meet future energy needs.
