Outlook for the Oil and Gas Market in 2024, According to Wood Mackenzie

Written by Paulo Nogueira

Published on 12/01/2024 at 02:35

Sonda da Pioneer perfura poço de gás não-convencional, o shale gas, na Bacia do Permiano, nos EUA (Foto: Divulgação) – Todos os direitos: EPBR

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WoodMac Consultancy Predicts Growth in Oil Production and Increase in Carbon Emissions. Prepare Action Plan for Emissions Control.

Oil and Gas industry is expected to see a 3% growth in global oil production in 2024 according to five forecasts by Wood Mackenzie, leading to an increase in emissions.

The oil and gas sector continues to play a crucial role in the global energy market, with the oil and gas industry expected to experience significant expansion in 2024, as predicted by Wood Mackenzie. This growth in oil and gas production will have implications for emissions levels in the industry.

Oil and Gas: Main Trends for 2024

Let’s take a look at the main trends for 2024, according to the consultancy:

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Important Details about the Trends

1. Investment in Oil and Gas Will Stabilize: The consultancy identified 45 projects in the final decision-making phase of investment, which will require US$ 170 billion to develop 25.5 billion barrels of oil equivalent (boe).

2. Increase in emissions from projects will test supply chain relationships: Inflation, bottlenecks, and price uncertainty will be the main challenges, according to Wood Mackenzie.

– Suppliers have not kept up with the recent increase in activity, and the projects are becoming more complex, with a greater demand for efficiency and emission reductions.

3. Mergers and Acquisitions will prioritize scale, asset performance, and diversification: The consolidation of the oil sector will maintain the pace of 2023, which saw major mergers announced, such as Chevron-Hess and ExxonMobil-Pioneer.

More: Merging ExxonMobil and Pioneer Creates the First ‘MegaMajor’ of Oil, Says Wood Mackenzie

– This movement will be driven by several factors, including operational and financial efficiency, and in some cases, emissions performance.

4. Some decarbonization gains will be reversed in 2024: The oil industry will continue to reduce emissions per barrel, but this will not be enough to offset the absolute increase in emissions.

– Scope 1 and 2 emissions in 2024 will increase by 12 million tons of CO2 equivalent compared to 2023, estimates Wood Mackenzie.

5. U.S. Oil Production Will Enter a New Phase of Growth: The region of U.S. known as the ‘Lower 48’, which excludes Alaska and Hawaii, will experience slower growth after the rapid increase of the past two years.

– Oil production in the region will increase by 180,000 barrels per day in 2024, a 2% rise, according to the consultancy.

Other Highlights in the Oil and Gas Sector

Oil Industry Against Fee.charged starting in April in the state of Rio de Janeiro.

– Industry entities have been meeting with law firms in recent weeks to prepare an action plan, which should be implemented between February and March, after the Judiciary recess.

The Control, Monitoring, and Supervision Fee for Oil and Gas Exploration and Production Activities (TFPG) was established by Law 10.254/2023, sanctioned by Governor Cláudio Castro (PL) on December 20.

Carmópolis Settled. received from Carmo Energyto collect the delay in payment, which should have been made on December 20.

– Carmo Energy purchased the asset in December 2021 for US$ 1.1 billion. Paid US$ 275 million as a deposit and another US$ 548 million in December 2022.

Vibra Without Petrobras. ‘under current terms’. The contract ends on June 28, 2029.

– Vibra stated that it was already planning for the end of the contract and that the announcement does not change the company’s strategy.

Among the brands are ‘Petrobras Stations’, the aviation kerosene brand ‘BR Aviation’, and the gasolines ‘Podium’ and ‘Grid’.
Petrobras Back to Fuel Distribution? Understand What’s at Stake

Biodiesel Importation.stated that the suspension of the biodiesel import approval by the National Energy Policy Council (CNPE) was important to avoid ‘compromising the local’ biofuel industry and generating ‘instability among investors’.

– The collegial body also approved, on the same day, the advancement of the mandatory blend increase of biodiesel in diesel: from 12% to 14%, in March 2024, and to 15%, in 2025.

Biodiesel Trucks. is investing R$ 26.4 million to replace its diesel truck fleet with 24 Scania vehicles powered 100% by biodiesel, which is expected to reduce CO2 emissions by 95%.

BYD’s Plan for Brazil. The Chinese BYD promises to verticalize all its electric vehicle production in Brazil, from lithium exploration and processing, through battery manufacturing, to bus and car production.

– The idea, according to the president of the BYD Brazil Council, Alexandre Baldyin an interview with , is to ‘make Brazil a regional hub in Latin America for BYD’.

Unlike the rest of the world, in Brazil, the ethanol hybrid will also be part of the company’s portfolio.

Global Risks for 2024. The World Economic Forum (WEF) Global Risks Report placed extreme climate events at the top of the list of the 10 main risks that global populations will face in the long term.

Debenture Incentive Approved. sanctioned without vetoes, this Wednesday (10), Law 14801/2023, with incentives for the issuance of debentures for infrastructure investments. Experts believe that the measure may attract a new profile of investor to the energy sector.

– The new debentures can be issued until the end of 2030, by specific purpose companies, concessionaires, permit holders, licensees, or lessees, which will be able to deduct up to 30% of the sum of the interest paid on the bonds from the IRPJ and CSLL calculation base.

Source: EPBR

Outlook for the Oil and Gas Market in 2024, According to Wood Mackenzie

WoodMac Consultancy Predicts Growth in Oil Production and Increase in Carbon Emissions. Prepare Action Plan for Emissions Control.

Oil and Gas: Main Trends for 2024

Important Details about the Trends

Other Highlights in the Oil and Gas Sector

The Soviet Union spent 22 years drilling into the Earth’s crust and reached a depth of 12,262 meters — they found water where it was thought impossible, hydrogen bubbling from the rock, granite that is 2.7 billion years old, and temperatures of 180 degrees that melted the drill bits.

Egypt wants to draw 10 million cubic meters of water from the Nile per day into the desert, irrigate a new agricultural frontier, and build a city where there is currently only sand.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

Stored for over 100 years, the first underwater tunnel in Latin America receives a decisive boost with a loan of R$ 2.5 billion signed in April and promises to connect Santos and Guarujá, on the coast of São Paulo, in just 5 minutes.

A brand that has been manufacturing motorcycles since 1901 launches its first electric model, and the price shocked the world: $3,000, weighing only 124 kg and accelerating from 0 to 60 km/h in 3.7 seconds…

Giant turbines on the seabed of Scotland have been generating clean energy for nearly a decade without interruption, and now the big promise is that tidal power could solve the biggest problem of solar and wind energy: the unpredictability that no one has been able to overcome until today.

Brazilian scientists assembled a “climate time machine” in the heart of the Amazon to fill trees with future CO₂ and discover how much the planet’s largest forest can withstand before changing forever.

With 1 trillion yuan in investments, China is creating from scratch a “city of the future” almost the size of London to relieve Beijing and transform the project into part of the legacy of supreme leader Xi Jinping.

The sea may advance faster than imagined: a 1-meter rise in ocean levels could leave up to 132 million people below the waterline, while a flaw present in over 99% of coastal analyses suggests that the real risk is already being underestimated.

A love letter written 540 years ago reappears thanks to artificial intelligence and reveals a surprising story of passion, family conflicts, a dowry dispute, and difficult choices that challenged the rules of medieval England.

SpaceX admits that the idea of taking artificial intelligence servers into space could run into something simple and inevitable: the laws of physics, which make the project more complex than it seemed.

Outlook for the Oil and Gas Market in 2024, According to Wood Mackenzie

WoodMac Consultancy Predicts Growth in Oil Production and Increase in Carbon Emissions. Prepare Action Plan for Emissions Control.

Oil and Gas: Main Trends for 2024

Important Details about the Trends

Other Highlights in the Oil and Gas Sector

The Soviet Union spent 22 years drilling into the Earth’s crust and reached a depth of 12,262 meters — they found water where it was thought impossible, hydrogen bubbling from the rock, granite that is 2.7 billion years old, and temperatures of 180 degrees that melted the drill bits.

Egypt wants to draw 10 million cubic meters of water from the Nile per day into the desert, irrigate a new agricultural frontier, and build a city where there is currently only sand.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

Stored for over 100 years, the first underwater tunnel in Latin America receives a decisive boost with a loan of R$ 2.5 billion signed in April and promises to connect Santos and Guarujá, on the coast of São Paulo, in just 5 minutes.

A brand that has been manufacturing motorcycles since 1901 launches its first electric model, and the price shocked the world: $3,000, weighing only 124 kg and accelerating from 0 to 60 km/h in 3.7 seconds…

Giant turbines on the seabed of Scotland have been generating clean energy for nearly a decade without interruption, and now the big promise is that tidal power could solve the biggest problem of solar and wind energy: the unpredictability that no one has been able to overcome until today.

Chemical tragedy in West Virginia leaves two dead and 30 hospitalized after toxic gas leak!

Oil surpasses US$ 103 amid tensions in the Middle East and uncertainty between the US and Iran.

U.S. oil stocks rise by 1.9 million barrels, contradicting analysts’ expectations of a sharp decline this week.

United Kingdom and France lead strategic plan to ensure the reopening of the Strait of Hormuz and stabilize the oil market.

An oil drilling company drilled 6 kilometers of rock in Colorado in just 18 days — but this time it didn’t want oil, it wanted the infinite heat that exists inside the Earth at 300 degrees Celsius.

Brazilian scientists assembled a “climate time machine” in the heart of the Amazon to fill trees with future CO₂ and discover how much the planet’s largest forest can withstand before changing forever.

With 1 trillion yuan in investments, China is creating from scratch a “city of the future” almost the size of London to relieve Beijing and transform the project into part of the legacy of supreme leader Xi Jinping.

The sea may advance faster than imagined: a 1-meter rise in ocean levels could leave up to 132 million people below the waterline, while a flaw present in over 99% of coastal analyses suggests that the real risk is already being underestimated.

A love letter written 540 years ago reappears thanks to artificial intelligence and reveals a surprising story of passion, family conflicts, a dowry dispute, and difficult choices that challenged the rules of medieval England.

SpaceX admits that the idea of taking artificial intelligence servers into space could run into something simple and inevitable: the laws of physics, which make the project more complex than it seemed.