2024 Energy Outlook: Quorum’s Experts Weigh In

In 2024, Quorum leaders expect to see increased energy production across all asset types, more investment in emission management and increased usage of the cloud.

2023 was a significant year for the oil and gas industry, with Global Energy Monitor that plans for new oil- and gas-fired power plants grew by 13%. Meanwhile, Exxon’s acquisition of Pioneer Natural Resources in October was the largest corporate purchase of the year, highlighting that fossil fuels will remain a significant part of the global economy.

According to a new report from the International Energy Agency, global demand for both oil and gas is set to peak by 2030, meaning there are even brighter days ahead. However, with the peak so nearby, energy companies need to be closely looking at how to capitalize on alternative fuel sources. As your team looks to key projects in the new year, it’s important to keep an eye on the future to ensure you’re prepared for 2024.

At Quorum, we’re committed to providing energy companies with best-in-class technologies that support their operational needs and navigate them through the energy transition. A significant aspect of this commitment is keeping up with rapidly changing regulations, economic fluctuations and other market forces that impact key business priorities. So we had an idea – what if we brought together some of our business leaders and industry experts to share what they’re hearing from oil and gas companies and what they’re focused on heading into the new year?

To that end, we've compiled some great insights from SVP of Upstream and Renewables, Duncan McDonald, SVP of International Products and Energy Transition, Alexandra Gajewski, and VP of Midstream and Measurement Products, Flower Pledger. Below, Duncan, Alexandra and Flower discuss key themes they believe will define the year ahead, and how your organization can best prepare for these challenges and opportunities.

Opportunities for growth are emerging

Heading into 2024, every organization will meticulously review the state of the market to identify both opportunities for growth as well as potential roadblocks that may hinder this growth. While Deloitte projects an 11% year-over-year increase in hydrocarbon investment in 2024, our experts expect to see a growth amongst all forms of energy.

“We expect to see an increase in all forms of energy production next year, including both renewables and natural gas, as the debt markets are becoming more friendly,” said McDonald. “We see macroeconomic conditions improving within the coming year, which is going to drive more activity within the field.”

On top of these improved economic conditions, the current period of ‘aggressive consolidation’ sets the stage for more growth through technology. “Against the backdrop of the energy transition and uncertainty on long-term demand and evolving regulatory regimes, there’s a great opportunity for energy companies to become more and more digital to maintain their competitive edge,” said Gajewski.

So, what exactly is pushing this movement forward? “Industry consolidation, the energy transition and innovation in AI are likely the key drivers to accelerated digital transformation,” said Pledger.

Emissions management will be a key focus in 2024

While investment in renewable energy has become an increasingly important goal for energy companies, investment in operational efficiency and direct emissions reductions is a focus for next year. According to Deloitte, more than one-third of oil & gas executives cite these reductions as pivotal metrics for assessing energy transition progress, and our experts believe this takes priority in 2024.

“I think one difference from 2023 is many of our larger oil and gas customers who were focused on renewable development are redirecting some of their investments away from renewable development towards emission management,” said Gajewski. “They’re now leaning into all forms of carbon management, such as carbon capture, utilization and storage (CCUS), to accommodate continued demand growth for clean oil and gas.”

Similarly, McDonald believes that carbon capture will be a key point of emphasis for energy companies in 2024. “It's an absolute key to the net zero targets that all energy companies are being held to, so I think we'll see more and more investment in carbon capture to increase capacity,” said McDonald.

In 2024, Gajewski also expects to see increased interest from energy companies for solutions that provide real-time monitoring and analytics for methane emissions to manage increasingly stringent regulatory demands. 

Cloud adoption is a key priority next year

Though the oil and gas industry has been slower to adopt many forms of technology, interest in the cloud has significantly grown in recent years. Our experts expect to see more growth in the year ahead, driven by several market factors and organizational demands.

“It’s harder to attract young talent into the industry, and many industry veterans are leaving the workforce and taking their knowledge with them,” said McDonald. “That’s where cloud solutions make a real differentiator, playing a key role in sustaining operations to continue to grow and thrive in this very competitive marketplace.”

Meanwhile, Gajewski argues that digital transformation spurred by cloud operations is crucial to keep up with new regulatory requirements and transparent reporting of ESG metrics. “While it may seem that sustainability sometimes takes a back seat to other initiatives, the ongoing digital transformation in the oil and gas industry provides a unique opportunity to integrate sustainability into the core of business operations,” she said. “We’re seeing that more and more from our customers, who seek digital technologies to drive innovation but also improve their environmental credentials.” 

To meet these growing needs, Quorum continues to invest in the Quorum Energy Suite that connects a company’s data and workflows across the entire value chain and turn net zero plans into progress. “That means supporting our customers as they drive innovation by transforming the business of energy through technology,” said Pledger. 

Of course, every organization will face different obstacles and experience different opportunities, but these insights provide a sense of where the industry is headed and how you can get ahead.  

If you have any questions about these insights or would like to learn more about what our experts are hearing, please don’t hesitate to contact us.