Crude oil is big business in all parts of the world. The oil industry is currently projected to have a big year in 2020, although exactly what that might entail is up for some debate. Current forecasts have the industry having a big surplus at the start of the next decade, but this is contingent on a number of factors.

The United States of America currently has a great amount of power when it comes to global oil production. The US is currently the world’s largest oil producer and under the Trump administration it has taken a number of steps to become energy independent. By tapping into the vast oil reserves that the country has, particularly in the Gulf of Mexico, the United States has created a current oil boom within its borders.

This has industry analysts being very optimistic about the future of the crude oil business, even in the wake of increased competition from green energy alternatives. The rise of renewables has led to some oil companies becoming a little more cautious. Mergers have taken place in an effort to horde existing oil supplies. This has cut down on some costs, particularly in the field of exploration for new oil drilling sites.

The trade war between the United States and China has some people worried. As two of the largest markets for oil, these countries fighting so ruthlessly with each other in an economic sense has resulted in lowered oil prices. This has in turn lead to investors becoming a little bit trigger shy with their financial contributions to big oil companies.

A couple of big oil drilling outfits have had their capital reduced in the wake of modified credit lines. This has slowed the overall production of crude oil and has had an overall negative impact on the oil market.

Moving forward into the next decade comes with a variety of challenges for the oil industry. The companies that produce crude oil will have to fight for relevance in a global dialogue that is increasingly dominated by talk of renewable energy. The trade war between the United States and China will have to de-escalate in order for oil prices to rise to a comfortable level. Even despite these challenges the oil industry will come out on top.