The State of Oil and Gas in 2021

We all remember how difficult 2020 was for the oil and gas industry. However, 2021 is underway, and with the new year comes new trends that are much more positive.

At three months into 2021, US West Texas Intermediate (WTI) Prices have averaged $57.79 per barrel. That is a 26.3% increase from the first quarter of 2020, when prices averaged only $45.76. Inventory levels are generally declining as we move deeper into the first half of 2021, and demand drivers are signaling more demand for oil. These trends are pointing to busy, high-demand quarters ahead for oil producers and suppliers.

And let’s not forget about natural gas. US Natural Gas Futures Prices are also posting rising growth rates, with the first quarter coming in 52.5% above the first quarter of 2020.

The above might not be the most welcome news for the standard US consumer, but it is good news for the oil and gas industries that were hit hard during the pandemic.

Now, being the proactive thought leaders that we are, our question becomes "How long can these positive trends last?" and "Are there factors that could alter the trajectory of the industry this year and next?" These will be the central focus of my April 27 webinar. We will discuss:

• Quarterly price expectations
• Breakeven points
• Production levels
• Inventory levels
• Demand drivers
• Capacity needs
• Forecasts for key vertical markets
  
  I will also discuss OPEC and its recent decisions pertaining to production, as well as the potential impact those decisions will have on prices and participants in the US oil and gas industry. It is also important that we have a conversation covering the Biden administration’s thoughts and intentions regarding fossil fuels. This conversation will include such topics as natural gas flaring, hydraulic fracturing, and pipeline regulation, i.e., the Keystone Pipeline.

When we look at the leading indicators for oil and gas, there’s a lot to be excited about for 2021 and into 2022. Are you prepared to take on the growth that’s coming our way? Tune in to my webinar on April 27 to find out.

Taylor St. Germain

Analyst and Speaker

Sign up for Taylor's webinar to learn more!