The oil and gas (O&G) sector made record-breaking profits in 2022, giving them cash flow to implement their goals in 2023. While oil and gas corporations are aware of the year’s geopolitical and macroeconomic volatility, they have also been given a clear mandate to guarantee supply in the near term while moving to cleaner energy in the long term.

As the world’s primary fuel sources, natural gas and oil are significant players in the energy market and greatly impact the global economy. Petroleum is the primary energy source for most of the yearly U.S. energy consumption. Used as gasoline, diesel fuel, home heating oil, and kerosene, petroleum products heat buildings, power cars, and generate energy. Contrary to popular belief, however, only a minor portion of the crude oil produced in the United States or imported into the country is refined and used directly in this manner. When people talk about predicting oil prices in 2023, petroleum usage is the reason, as it affects people more commonly. 

The U.S. Energy Information Administration (EIA) expects average family expenditures for home heating to rise this winter due to higher projected fuel prices and increased energy usage due to lower temperatures. Based on the Winter Fuels Outlook, EIA projects that expenditures for residences heated with natural gas will increase by 28%, propane by 5%, heating oil by 27%, and electricity by 10% from the period of October to March.

Brent crude oil is traded in U.S. dollars. For this reason, drops in crude oil prices impact other nations differently. As investors prefer U.S. currency as a safe-haven asset during uncertain economic times, they are buying U.S. financial assets as the Federal Reserve raises interest rates to combat inflation. This trend has caused the U.S. dollar to reach its highest point in two decades. Many of the world’s developing economies use alternative currencies. They must convert to U.S. dollars to buy crude oil. 

Toward the end of 2022, potential interruptions in petroleum supply and slower-than-expected crude oil production growth might lead to higher oil prices, while slower-than-expected economic growth could contribute to lower costs. Brent crude oil futures prices fell for the third month in a row in September, signaling a possible trend. 

According to EIA projections, U.S. crude oil output will average 12.4 million barrels per day in 2023, down from an estimated 12.6 million barrels per day towards the end of 2022. World oil output will average 100.7 million barrels per day in 2023. World oil consumption in 2023 will be 101 million b/d. The reason for the lower crude oil output in the estimate is a due to lower crude oil prices in the fourth quarter of 2022 than the EIA had previously projected.