Leaders in oil and gas, as well as in related industries, have begun to predict that a super cycle is on the horizon. As demand outpaces supply, it’s quite possible that’s what the future holds. Here’s what your organization needs to know to stay on target for growth, and how Shea Writing & Training Solutions can help.
What is a Super Cycle?
A super cycle (or supercycle) is a “sustained period of expansion, usually driven by robust growth in demand for products and services.” These events tend to lead to a higher demand for raw and manufactured materials (such as plastic, oil and gas, and metal), but the demand outpaces what the producers can supply.
In many cases, this can be good news for stock prices and commodity markets, leading to growth.
What is Influencing the Potential Super Cycle?
The future of oil and gas is far from cut and dried.
Interest rates are climbing and the market is definitely risky for investors, but commodities are said to be a “different beast altogether.” This is clear when you look back at 2021 and see how commodity performance outpaced that of other markets. Some are calling this the start of a ten-year commodity super cycle.
However, the signs for the oil and gas industry aren’t looking good. Meanwhile, copper is taking over from older investments in oil, mining, and coal, and the market is also moving towards renewables and green energy, especially with stimulus funding.
Consider some of the factors and ideas at play:
- Capital spending is expected to rise in 2022 compared to 2021.
- If oil and gas continue to increase in price, more investments might be called for.
- Spending in North America is expected to increase by 20%.
- Economic conditions are like those during the last super cycle for the industry.
- Cash flow is solid, thanks to high prices.
- Oil prices are trading at seven-year highs.
- There might be a “medium-term deceleration in both demand growth and non-OPEC supply growth.”
The industry isn’t expected to reach pre-pandemic levels of earnings until possibly the end of 2022, barring any additional disruptions from COVID. Already, companies are starting to increase their investments to meet the current demand growth.
Why Pay Attention to This Super Cycle?
No matter what the future holds, the world is in the middle of an energy transition. Whether you’re set for growth or a pivot, it’s essential to develop policies that work not only for today, but for tomorrow and the years to come. Policies, procedures, and documentation that stay stagnant will only prove to be an unnecessary hurdle for companies.
However, by keeping the energy transition in mind when creating documentation, you can be sure to lay a solid foundation for the future. This will make it easier for your organization to head toward growth, expansion, new markets, and new technologies, while also winding down procedures or technologies that aren’t fitting the current market demands.
For oil and gas companies, innovation and collaboration will be key.
Technical Writing Can Help You Meet the Needs of a Changing Industry
Whether you need to adapt to new technologies, enter a new market, or decommission old tech, technical writing can be a lifesaver. Documentation ensures your employees are all following proper procedures while allowing you to stay on target for deadlines and budgets. Working with a technical writing team can also help you do more than just check the boxes on your to-do list as you move into the future of the oil and gas industry.
At Shea Writing & Training Solutions, for example, we’ve noticed many in the industry looking toward liquefied natural gas (LNG) facilities. Other companies are investigating wind power, solar, and more.
No matter which direction your company takes, however, working with technical writing professionals can
- Help increase the likelihood that you will receive stimulus funding
- Ensure that documentation that needs to be submitted to governing bodies is correct the first time
- Outline changing processes and procedures clearly for current and new employees
- Help you develop a game plan for decommissioning old technology
- Ensure you develop a strategy for new markets
- Provide the support you need to keep your documentation up to date not only for the coming months, but the years ahead
Companies in the oil and gas industry must get ready to make decisions that will ensure success in the coming super cycle. Though it might not be clear exactly what the future holds, it’s easy to see the direction it’s heading.
Does your energy company need help getting your policies, manuals, procedures, and other documentation ready to meet the needs of the changing market? Shea Writing & Training Solutions can help you adapt before it’s too late. Don’t play catch-up – schedule a call with us today to get started.
