- LNG investments are expected to surge by over 50% by 2029, driven by new projects in Qatar and North America.
- Global LNG supply will rise by 80% by 2030, driven by projects in Qatar and North America.
- Natural gas demand is set to grow by 50% over the next five years, while long-term oil demand will decline.
- European energy crisis relief is expected from the increased LNG supply.
- Oil investments are peaking, especially in non-OPEC countries, but could still yield strong returns if prices remain $80-$90 per barrel.
- Industry consolidation through mergers and acquisitions is likely due to decreasing oil demand, with a shift towards more sustainable natural gas investments.
Goldman Sachs Research has projected a significant transformation in the oil and gas industry, with investments in liquefied natural gas (LNG) expected to surge by over 50% by 2029.
This insight comes from their 21st annual analysis of the energy sector, known as Top Projects. The global demand for natural gas is predicted to rise, while oil demand is anticipated to decline in the long term.
This shift will be largely driven by new LNG projects in Qatar and North America, which are set to boost the global LNG supply by 80% by 2030. Such an increase is expected to alleviate the ongoing European energy crisis.
As the world pivots towards cleaner energy sources, the global gas market is forecasted to expand by 50% over the next five years.
Concurrently, oil investments are showing signs of peaking, especially in non-OPEC countries.
However, oil companies could still secure attractive returns and notable per-share growth if oil prices remain between $80 and $90 per barrel.
The report also highlights the potential for continued consolidation in the industry through mergers and acquisitions, driven by the decreasing demand for oil.
As the energy landscape evolves, companies are adapting by increasing their focus on natural gas, which is seen as a more sustainable energy source.
Goldman Sachs Research emphasises the strategic importance of these LNG investments, predicting that they will meet growing global energy needs and play a crucial role in stabilising the energy market.
This dynamic shift in the energy sector underscores the importance of strategic investments and innovation to navigate the changing demands and ensure a stable energy future.
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