The global oil and gas industry demonstrated resilience in 2024, facing a complex landscape of controlled supply, variable demand, geopolitical tensions, and ongoing energy transition efforts.
Brent crude oil prices remained notably stable, fluctuating between US$74 and US$90 per barrel throughout the year, marking one of the most stable periods in recent decades.
Despite challenges, the industry maintained robust financial performance.
Global oil and gas companies distributed approximately US$213 billion in dividends and $136 billion in share buybacks between January and mid-November 2024.
This financial strength was underpinned by a focus on high-return investments and production efficiency, with the industry’s capital expenditures increasing by 53 per cent over the past four years, while net profits rose by nearly 16 per cent.
Woodside Energy, a major player in the Australian market, reported its fourth quarter 2024 results, showing a slight decrease in production and revenue compared to the previous quarter.
The company produced 51.4 million barrels of oil equivalent (MMboe) in Q4 2024, down 3 per cent from Q3, while revenue decreased by 6 per cent to US$3,470 million.
Looking ahead to 2025, the industry faces both opportunities and challenges.
The U.S. Federal Reserve is expected to implement interest rate cuts, potentially clarifying some economic uncertainties.
Global markets are closely watching OPEC+ production decisions and potential disruptions to energy trade flows.
Key trends expected to shape the industry in 2025 include repositioning for growth in the Permian Basin, emerging opportunities in oilfield services, national oil companies breaking barriers, refineries navigating uncertainties, and the impact of evolving global energy policies.
As the industry moves forward, it continues to balance traditional operations with investments in low-carbon technologies, positioning itself for the future energy landscape.
However, environmental concerns remain at the forefront, with 2024 confirmed as the hottest year on record, prompting calls from environmental groups for increased accountability and taxation of oil and gas companies to address climate-related damages.
The coming weeks will see major oil and gas companies, including Shell, ExxonMobil, Chevron, and Woodside, announcing their annual results for 2024, providing further insight into the industry’s performance and future outlook.
