It seems that 2018 is going to be quite a year for investors all around the world. In addition to the rise of new digital technologies such as digital currency, some investment markets that have been ignored for past couple of years are expected to see a boom in 2018. This year is going to be the perfect time for seasoned investors to diversify their portfolios.
2018 is going to be a great year for investors to invest in oil and gas for the following reasons:
The Worst Is Over, and the Boom Is Expected
It won’t be wrong to say that the past three years were some of the worst years for oil and gas industry in many decades. Here is a forecast of some of the major players in the industry for 2018 according to a NASDAQ podcast:
· The expectations for earnings in 2017 for Exxon Mobil were 52% in the upward direction. The growth is also expected in 2018 by up to 12%.
· 2016 was a very tough year for Chevron, but since then it has been all good news for them. There is a 17% rise expected in 2018 for EPS.
· Pioneer Natural Resources is expected to see some great improvements in their earnings too. In 2017, their earnings went up by 800% and the rise in earnings is going to say with expectations of up to 107% rise in 2018.
· The well-known US pumper, RPC is confident to raise prices in 2018 based on the confidence it has gained in 2017. In 2018, there is a forecast of 88% rise in their earnings.
After the three tough years for the industry, experts also believe that oil and gas industry prices have bottomed out, which means they will not go below that point anymore.
The Technology Is Getting Better
The entire oil and gas industry is now on the verge of benefitting from the new technological advancements in exploration and production departments. The current focus for the industry is asset performance management and investments in smart technologies. EAM systems are also supposed to play a huge role in allowing oil and gas companies to manage their assets better. The new sensors that the industry will use to explore new opportunities will benefit from edge computing to greatly reduce networking and connectivity costs.
The engineers located in remote locations and working for oil and gas companies will also benefit greatly from augmented reality. A lot of the manual processes will be automated and connected to mobile devices. Gamification will improve productivity and profits. Last but not least, engineers and researchers are still exploring the many possibilities of using drones or UAVs for the benefit of the industry.
There should be no doubt about the fact that oil and gas industry will see a rise in 2018. It is now on you how you will invest in the energy and which tool you will use for your investment, e.g., ADRs, ETFs, mutual funds, Future Contracts, etc.