The S&P Global Ratings Industry Top Trends 2022 report for the oil and gas sector suggests that the positive ratings trend will continue. The report highlights the strong rebound in hydropower prices in 2021, driven by global economic reopenings, supportive OPEC policies, and production discipline from North American producers. Environmental, social, and governance (ESG) and energy transition were also significant factors in 2021, with increased regulation and climate change policies. The report assumes that oil and natural gas prices will remain supportive in 2022, with higher prices possible if COVID-related economic effects improve. Issuers are expected to focus more on shareholders, and global refining capacity is expected to continue to recover. However, the report also identifies risks, including supply disruptions, potential disagreements between OPEC+ countries, and the potential for more serious mutations of the virus.
