Fitch released the "2024 Global Oil and Gas Outlook Report", pointing out that under many challenges such as energy transformation, ESG concerns, and geopolitical risks, oil and gas companies need to actively respond, adapt to future changes through global cooperation and continuous innovation, and enhance their sustainable development capabilities.

Recently, Fitch, a well-known international rating agency, released the "2024 Global Oil and Gas Outlook Report".The report points out that with the continuous development of the global economy and the growth of the population, energy demand continues to rise, and oil and gas remain one of the world's main sources of energy.However, the global crude oil market has experienced supply and demand fluctuations, price fluctuations and energy transition challenges in the past few years.

Fitch believes that with the recovery of the global economy and the growth of energy demand, the oil and gas industry will still play an important role.Under many challenges such as energy transformation, ESG (environmental, social and corporate governance) concerns, and geopolitical risks, oil and gas companies need to actively respond to them and improve production efficiency, reduce carbon emissions, and enhance sustainable development capabilities through technological innovation and digital transformation.At the same time, the oil and gas markets in various regions of the world also have different development trends, and corresponding strategies and cooperation plans need to be formulated according to specific circumstances.Only through global cooperation and continuous innovation can the oil and gas industry adapt to future changes and contribute to a sustainable energy future.

The balance of supply and demand will be the main focus of the global oil and gas market

According to Fitch's forecast, the recovery of the global economy will drive the growth of oil and gas demand, especially in Asia, emerging markets and industrialized countries. Demand growth will become the main driving force.However, there are still a series of challenges in the supply of oil and gas.Insufficient investment may restrict exploration and development activities, leading to a slowdown in global supply growth.In addition, some large-scale projects may face problems such as rising costs, complex geological conditions and social opposition, which will further affect the ability of oil and gas supply.The development of unconventional oil and gas resources (such as shale gas and oil sands) may also be affected by environmental issues and regulatory restrictions.

The balance of supply and demand will have an important impact on the trend of oil prices.As the global economy recovers, demand for oil and gas is expected to increase, but supply growth still faces certain risks.Therefore, Fitch believes that oil prices may maintain a moderate upward trend, but they will still be subject to geopolitical issues, environmental policies, and the impact of energy transition.

Carbon reduction and environmental risk response are the main challenges of energy transformation

Energy transformation is one of the important trends in the current global energy industry and has a profound impact on the oil and gas industry.Fitch believes that with the increasing global attention to climate change issues, the development and application of renewable energy has gradually expanded, bringing many challenges and opportunities to the traditional oil and gas industry.

The challenges of energy transformation to the oil and gas industry are mainly reflected in reducing carbon emissions and responding to environmental risks.Fitch recommends that oil and gas companies increase investment in green energy and low-carbon technologies, improve environmental management, and raise awareness of environmental and social responsibilities.Oil and gas companies also need to strengthen corporate governance and improve transparency to meet the environmental, social and corporate governance requirements of investors and stakeholders.

With the increase in demand for renewable energy, oil and gas companies can expand their business areas by participating in renewable energy projects, developing biofuels and green refining technologies.In addition, the oil and gas industry still has an important position in providing basic energy, backup energy and auxiliary energy, especially in the process of energy transformation, the role of oil and gas is still indispensable.

The development of the oil and gas industry in various regions is different

In the Americas, North America and Latin America have rich potential in oil and gas resources.As one of the world's largest oil and gas producers, the United States has achieved rapid production growth driven by the shale gas revolution.Fitch predicts that the Americas will continue to maintain strong production capacity growth and become one of the world's largest oil and gas producers.Latin American countries such as Brazil and Mexico are also taking a series of measures to attract external investment to develop their own oil and gas resources.

In Europe, energy transformation and environmental policies have had an important impact on the oil and gas industry.Fitch believes that Europe is gradually reducing its dependence on traditional oil and gas and promoting the development of renewable energy and energy efficiency.Nevertheless, Europe still needs to maintain its supply of oil and gas and seek to improve energy security.Therefore, European countries will continue to seek diversified sources of oil and gas supply and increase investment in renewable energy.

As one of the world's largest oil and gas consumption regions, Asia has further increased the demand for oil and gas.Fitch predicts that oil and gas demand in Asia will continue to grow, especially in emerging markets such as China and India.In order to meet demand, Asian countries will continue to increase their dependence on imported oil and gas, and actively carry out the development and cooperation of overseas oil and gas resources.At the same time, Asian countries are also making efforts to strengthen clean energy and energy diversification to address challenges such as climate change and energy security.

ESG management has become one of the important indicators to assess the sustainable development capabilities of oil and gas companies

Fitch believes that in the past few years, the importance of ESG has attracted more and more attention from investors and stakeholders.

First of all, carbon emissions and climate change issues have become one of the most important challenges faced by oil and gas companies.With the increasing global demand for carbon reduction, oil and gas companies need to take measures to reduce greenhouse gas emissions and address the risks of climate change.Through the adoption of clean technologies, energy efficiency improvements, and increased investment in renewable energy, oil and gas companies can reduce their dependence on fossil fuels to achieve a low-carbon transition.In addition, oil and gas companies should also review their business models and consider transitioning to more sustainable energy solutions, such as the production and supply of natural gas and renewable energy.

Secondly, environmental risks and ecological impacts are also challenges faced by oil and gas companies.Exploration and mining activities may have a negative impact on land, water sources and biodiversity.In order to manage and reduce these environmental impacts, oil and gas companies need to develop and implement environmental management plans to ensure that best practices and technologies are used to reduce risks.In addition, enterprises should actively participate in ecological restoration and protection projects to provide compensation and protection for affected ecosystems.

Again, social responsibility and good governance are also challenges that oil and gas companies must face.Companies need to establish lasting cooperative relationships with local communities and take measures to protect the community environment.In addition, oil and gas companies should strengthen corporate governance, improve transparency and accountability systems, and ensure compliance with ethical standards in the industry.Through the establishment of good governance structures and practices, oil and gas companies can enhance the trust of investors and stakeholders in the company and improve their competitiveness.

Geopolitical risks are one of the important challenges facing the global oil and gas market

Fitch emphasized that, first of all, geopolitical tensions may cause disruptions or severe fluctuations in oil and gas supplies in specific regions or countries.Conflicts, wars, terrorist activities, etc. may cause disruptions in oil and gas production and exports, or cause supply chains to be blocked.For example, geopolitical conflicts in the Middle East often cause violent fluctuations in oil prices, because the region is an important global oil and gas production area.In addition, risks such as changes in the political system and social turmoil may also affect the supply of oil and gas in specific countries.

Secondly, geopolitical risks may lead to export controls and sanctions, further restricting oil and gas supplies.It is more common for the international community to impose export controls or sanctions on certain countries or regions, which may restrict oil and gas exports from these countries or regions and have an impact on global supply.For example, sanctions against a major oil-producing country in the Middle East have led to a sharp decline in the country's oil and gas exports, affecting the supply pattern of the global oil and gas market.

Again, geopolitical risks may also have a negative impact on oil and gas investment, increasing the uncertainty of long-term investment plans.Companies' investment decisions are often affected by geopolitical risks. Political uncertainty, changes in the legal and regulatory environment may make companies conservative in the implementation of long-term investment plans, leading to delays or slowdowns in investment projects.

Technological innovation and digital transformation in the oil and gas industry have broad application prospects

Technological innovation and digital transformation have important application prospects in the oil and gas industry.Fitch pointed out that by introducing advanced technologies and digital solutions, oil and gas companies can improve production efficiency, reduce costs, improve safety, and optimize operation and management.

First of all, technological innovation can help oil and gas companies improve production efficiency and reduce costs.The oil and gas industry is a complex industry, which involves a large number of equipment and facilities, such as oil and gas pipelines, drilling equipment, etc.By introducing advanced technologies and digital solutions, such as the Internet of Things, big data analysis, and artificial intelligence, oil and gas companies can realize real-time monitoring and optimization of equipment and processes, improve production efficiency and reliability, and reduce costs at the same time.

Secondly, technological innovation and digital transformation can help oil and gas companies better meet environmental and social challenges.With the increasing global attention to environmental and sustainability issues, oil and gas companies also need to optimize their production and operation methods, reduce carbon emissions, optimize energy consumption and other measures.Through the application of technology and digital solutions, oil and gas companies can achieve more detailed regulatory environmental monitoring, air quality supervision and other measures, thereby reducing environmental risks and improving sustainable development capabilities.At the same time, digital technology can also improve safety monitoring and risk management to ensure the safety of staff operations.