AI, carbon reduction, and M&A are top oil and gas trends to watch in 2025, new report says

January 13, 2025

According to a new report from national law firm Lathrop GPM, oil and gas (O&G) decision makers are grappling with carbon reduction initiatives and artificial intelligence (AI) readiness—as well as continuing to evaluate potential mergers and acquisitions (M&A) to drive new efficiencies—amid ongoing economic, geopolitical and regulatory uncertainty.

This year's annual report, "2025 Oil and Gas Outlook and Trends," identifies three major developments expected to shape the industry in the year ahead. To support the report's external market research, Lathrop GPM surveyed 100 U.S.-based O&G executives in October 2024 on their expectations for the sector next year.

The report comes as the O&G industry faces an increasingly complex business landscape, be it anticipated regulatory shifts under a second Trump administration, the rapid adoption of new technologies or ongoing pricing hurdles. Lathrop’s research found, unsurprisingly, that respondents' top three concerns for the year ahead were operational efficiency and cost management issues (52%), regulatory and compliance pressures (52%), and pricing pressures (50%).

Lathrop released a snapshot of the report's three key areas to watch:

Fewer than half of respondents have committed to carbon reduction initiatives like carbon capture and electrification, despite the U.S. government's ambitious 2030 carbon reduction goals and robust investments in clean energy.
Seven in 10 O&G companies are using (or considering using) at least one AI-integrated and/or automated technology—but implementation challenges abound.
Only 25% of respondents say their organization is unlikely to pursue M&A in the next 12 months—and nearly 90% of those likely to participate anticipate using stock options to do so.

"Oil and gas companies are making notable strides when it comes to improving productivity and adopting new technologies," said Patrick McRorie, Chair of Lathrop GPM's energy practice. "Yet as the push for carbon reduction and AI adoption intensifies amid ongoing economic and regulatory uncertainty, there is no shortage of obstacles facing O&G executives in 2025. It should be an exciting year as major players look to M&A and further technology upgrades to stay ahead of the competition."