3 Oil & Gas Pipeline Trends to Watch in 2021 by TOGC team
Because of the increasing demand of refined products, the transportation segment of the Oil & Gas industry before the pandemic burst had been predicted to dominate the market during the forecast period. The 2020’s crisis generated a supply shock with an unprecedented demand drop. Has the industry undergone local or structural changes and what are the novelties that deserve attention? BGS team shares its perspective on the 2021 transportation Oil & Gas top 3 hot trends.
1. Reinforcement of crisis-management
The industry’s response to the emerged crisis was efficient and safe operationalization of the essential assets. Well-located midstream assets supported by contracts with creditworthy counterparties have proven a successful business model (1) , demonstrating efficiency of crisis prevention measures.“In times of severe humanitarian crisis and economic slowdown, all the financial news concerning oil and gas transportation projects were full of ideas to cut the costs and to rethink the budgets. Both active projects and projects under construction faced instability. The first group had to optimize the activities and the second group's projects were delayed. As a result, companies developed cost-efficiency strategies while service providers and equipment manufacturers introduced cost-cutting solutions” - Angelina Nizamova, Project Director TOGC
2. Hydrogen and reaching a carbon neutral future
The search for innovative ways of energy transition and integration of renewables isn’t a recently emerged phenomenon, but it was considerably accelerated lately. As environmental issues provoke the more and more concerns and stay a front-page topic, alternative less hazardous fuels deserve attention
“Hydrogen definitely deserves attention and has to be considered as an alternative fuel. It is both high-potential and contains plenty of aspects to study. As hydrogen has its supporters and opponents, it’s surrounded by big controversy. However, as the EU declared its plans on a carbon neutral future and the majority of European countries supported them, it becomes evident that we need to take hydrogen into consideration, adapt the assets, estimate risks, find the best way to produce and deliver it” - Victoria Peskova, Senior Project Coordinator
3. Pipeline digital transformation
As the integration of digital technologies into the pipeline industry significantly increases efficiency and simplifies monitoring of the Oil & Gas transportation, the digitization of the industry has been continuing for several years. The 2020’s crises was the catalyst that accelerated the ongoing process.
“If somebody was skeptical about technologies before 2020, all doubts fell away with the lockdown, and no chance left to neglect digital transformation. This topic is not the one that emerged last year but it definitely is the one that was accelerated. Facing the situation where all the workers whether are on lockdown or work in shifts, it’s essential to have necessary information right in front of you, on your PC” - Darya Filatova, Head of Networking
Learn more about the most up-to-date Midstream industry trends and hear the insights of the experts from Oil & Gas majors, EPCs and service providers who will share their exclusive case studies at TOGC 2021.
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