Sproule Market Report
Energy Market Outlook 2024
The oil and gas sector has undergone significant transformations in recent years due to global economic shifts and local conflicts. Energy markets have proven resilient amidst fluctuating prices and geopolitical tremors, but the journey has been challenging.
Sproule’s latest Market Outlook Report delves into the core of upstream market dynamics, focusing on the fundamental global supply and demand drivers. We analyze the impact of emerging basins, coupled with the global balance of supply and implications for market stability. This report examines the key drivers of crude and natural gas markets, inflation, geopolitical impacts, and how these factors shape our global price forecast.
Key Points:
- The global energy market faces challenges from crude oil demand, EV adoption, OPEC+ production cuts, geopolitical tensions, and varied economic recovery rates.
- Exploration activity is increasing but remains below historical levels.
- The global gas market has been significantly impacted since the Russian invasion of Ukraine with changing demand and supply patterns. Global gas demand is expected to recover by 2025.
- The continued role of LNG exports in driving North American natural gas demand growth highlights the region’s increasing global significance in energy trade. North American LNG export capacity is projected to double by 2027.
- Europe’s natural gas import infrastructure has been reshaped with a greater reliance on global LNG. A gradual normalization of gas prices in Europe is expected following the 2022 price shock.
