The oil and gas industry has always been a hot topic for economists around the world. Regular researches and analysis are carried out to predict the phases of the oil industry in the future. It actually is a tedious task, as before predicting future trends, one must look at the growth in demand, technology, and world politics regarding the industry.
Why is prediction difficult?
1. The data regarding the production, consumption and demand of oil and natural gas from the recent past is either inaccurate or unreliable. Plus, sometimes different studies give different results. Hence the predictions made from this data cannot be relied upon.
2. These inaccuracies actually arise right from the moment of data compilation using estimates of OPEC production and commercial reports from other nations. The figures are unreliable since they can be played around due to political or economic reasons.
3. The official publications that are released have a huge margin in their supply and demand, which accounts for various errors. Hence for preparing future predictions, these rough estimates can cause uncertainty.
4. Interference of national governments in the global oil industry is an obstacle for recording actual facts. This is the reason it is hard to predict if a report is true or not.
The reputation of the oil industry has been at stake among job seekers when it comes to human resources and finance unreliability associated with it. It has no good acceptability in terms of social responsibility and environmental management.
Despite the fact that if the industry tackles certain challenges like finance, human resources, technology, and politics, it still has insufficient answers when it comes to the limited presence of hydrocarbons. It has to meet the continuous demand of energy around the world.
Oil and gas are produced in the earth's crust from sunlight over millions of years, and hence this energy resource is finite. Therefore the oil and gas production is unsustainable in the long run. The US geological survey (USGS) reported an exhaustive estimate of the oil supply worldwide. If international companies are allowed to discover new energy alternatives then the oil reserves of Middle East will be enough for the future.
It can be concluded that unreliable data regarding oil industry cannot be used to analyze its future prospects. Hydrocarbons are depleting rapidly but the demand for fuel is growing all over the world. Solar energy and nuclear energy are most probably the only long term energy sources.