Global Market Trends

Global Energy and Oil & Gas Market Trends 2024: A Balancing Act

Oil Demand

Modest Growth: Global oil demand is projected to grow by around 1.5 million barrels per day (b/d) in 2024, a slowdown from 2023's 2.0 million b/d increase [SP Global Commodity Insights]. This moderation reflects a softening global economic outlook, with GDP growth expected to be around 2.3% [SP Global Commodity Insights].

Shifting Demand Centers: The growth in oil demand is primarily driven by non-OECD Asia, particularly China and India, which are expected to contribute 60% of the rise [SP Global Commodity Insights].

Oil & Gas Production and Investment

Production Uptick: Responding to strong global demand and geopolitical disruptions, oil and gas companies, particularly in the US, have increased production [EY].

Cautious Investment: While oil prices remain high, overall capital spending in the energy sector is expected to rise moderately by $100 billion in 2023-24, with a $30 billion increase in upstream oil and gas projects [SP Global Commodity Insights]. However, government policies and the industry's own sustainability pledges will influence future investment levels.

Everybody is motivated to see the energy transition happen, but it's not going to be a cake walk by any means. We're even more convinced today, though, that natural gas will dominate global energy, and some people call this the bridge, but it's going to be an awfully long bridge."

Al Monaco, President and CEO, Enbridge Inc.
^{(Quote source: S&P Global Market Intelligence, Q3 2024 earnings call)}

Global Energy and Oil & Gas Market Trends 2024: A Balancing Act

Energy Transition

The Green Push: The energy transition is gaining momentum, with increased adoption of electric vehicles (EVs), emerging clean energy technologies, and stricter energy efficiency policies [IEA]. This is expected to plateau oil demand growth in the long term [IEA, RFF].

Decarbonization Efforts: Oil and gas companies are investing in carbon capture, utilization and storage (CCUS) and hydrogen technologies to reduce their environmental impact and provide low-carbon solutions for hard-to-decarbonize industries [EY].

_{Sources: 2024 oil and gas industry outlook | EY
Top 10 factors shaping global oil markets and mobility in 2024 | S&P Global Commodity Insights | SP Global Report & Oil 2024 – Analysis | IEA}