Despite greener alternatives steadily gaining market share, oil and gas remain behemoth industries, estimated at $2.1 trillion in total revenues this year. And according to experts, a mix of catalysts might continue to push the sector to record-breaking numbers in the following years to come. Here are trends you should know about in the oil and gas sector this 2021.

Big M&A Activity
In the last couple of years, there have been several mergers and acquisitions to happen in the oil and gas sector, primarily in the Permian Basin. That said, future M&A activity is expected to come from the Marcellus Shale area, which is the biggest natural gas-generating basin in the U.S. and Canada. A recent acquisition in the sector was that of privately-held company, Alta Resources, by EQT Corp for close to $3 billion.

Average Price Range for WTI
Experts predict WTI, or West Texas Intermediate, oil to hit the price range of $70 to $75 per barrel. WTI is one of the primary oil benchmarks in the world, making it an important price prediction for oil and gas companies as well as investors in the market. The human population is steadily increasing, primarily in developing countries, like India, China, and Brazil. With an increasing amount of middle-income consumers, demand for energy will drive oil and gas prices higher.

Total U.S. Oil Production
In the last three years, the United States has been reporting lower oil production numbers. But when you look at the oil production rate of the U.S. during the last quarter of 2021, you’ll find that it increased by a million barrels per day compared to 2020 numbers. This report is also helped by the amount of active rigs operating within the country. A strong rebound in rig count indicates a promising outlook for oil production numbers for this coming year.

Oil and gas trends have a huge economic impact on consumers’ day-to-day life. Even the slightest increase in oil or gas prices can result in hundreds of dollars in additional annual costs to top your car up with gas or run your kitchen or heating appliances. As an investor of these commodities, knowing the upcoming trends in the sector also allow you to position yourself more favorably.