Survey overview and key findings
Confidence VS caution – – 81% describe their outlook as
concerned but 19% are optimistic about the future; of this, 50% of optimistic respondents were fromNOCs
Current and future projects on the line – – Reduced profitability/viability of E&P activities, together with lack of appetite for investment in new projects are the twin leading trends expected to affect oil & gas businesses in the coming year, by some margin (with 64% and 59% of respondents flagging these up as critical) – – However, the myriad of factors that respondents also said are coming into play highlights the scale of the challenges faced by the
Influence of OPEC remains a significant force in the market – – OPEC policy and the slowing of the Chinese economy are the most significant geopolitical factors affecting businesses (according to 74% and 50% of respondents), followed by the impact of sanctions in locations such as Iran (41%)
Key findings
industry – from the cost of transportation and storage to increasing regulation and compliance requirements
Responding to the new realities – – 78% say they are reacting cautiously or
reactively to market conditions whilst 22% are taking an aggressive or opportunistic approach – – Restructuring entire businesses or asset portfolios is the top priority – 32% identified this as their number one strategy going forward – – Almost half (41%) of IOCs outlined restructuring as a key priority in light of current market conditions, in comparison to 25% of those fromNOCs who listed the development of their downstream capabilities as their main focus
Price VS production – – 92% have seen the majority, or all, of their business affected by the collapse in oil prices. Despite this, half (49%) expect global oil production to remain steady, with just over a quarter (28%) expecting it to increase
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