Global Oil and Gas Survey 2012–2013 Market Trends, Marketing Spend and Sales Strategies in the Global Oil and Gas Industry

Thursday 16 August 2012, Amsterdam

Marketing budgets of global oil and gas industry supplier respondents are expected to rise by an average of 6.5% over the next 12 months. Supplier respondents plan to spend more on different online media formats such as newsletters, blogs, videos, webcasts, podcasts, online resource centers and talkback. 46% of respondents expect an increase in marketing expenditure of between 1% to 10% in 2012, while only 3% of respondents expect a decrease between 1% and 10%.

Of respondents across the global oil and gas industry, 57% are ‘more optimistic’ about revenue growth for their company over the next 12 months than the previous 12 months. This optimism is based on the implementation of cost containment measures, the growth of profitable markets such as the South East Asian countries, as well as China and India, and positive changes in business strategies for driving sales.

Executives from the global oil and gas industry expect increased levels of consolidation, with 57% of respondents anticipating that there will be either a ‘significant increase’ or an ‘increase’ in mergers and acquisition (M&A) activities over the next 12 months. M&A activity is expected to increase as a result of high growth in emerging markets and overcapacity in developed regions, and the need to develop new efficient technology solutions as a long-term priority for companies is also expected to drive M&A activities. Additionally, global oil and gas industry buyer respondents reveal that they will increase capital expenditure towards ‘machinery and equipment purchase’, ‘new product development’ and ‘IT infrastructure and development’ over the next 12 months.

Global oil and gas industry respondents identify India to be the most important region for growth among emerging markets, along with China, Brazil and the Middle East. Furthermore, India and China are considered the two most important emerging markets by respondents from fossil fuel oil and gas generation companies, with strong economic growth in both countries, along with high demand for oil and gas, rendering them attractive to foreign investors. On the other hand, Singapore with Taiwan and Hong Kong, Canada and Australia are the developed regions with the highest growth potential, as identified by 45%, 42% and 41% of respective respondents from global upstream oil and gas companies. Additionally, according to 46% of respondents from midstream and downstream oil and gas companies, Australia will demonstrate ample growth in this sector.

According to the survey, 46% of global oil and gas industry respondents rate ‘market uncertainty’ as the most important business concern during 2012–2013, while 38% rate ‘rising competition’ as the most important, followed by another 36% rating ‘retention or recruitment of skilled staff’ as a chief concern. Furthermore, respondents from global oil and gas industry companies, regardless of size, consider ‘market uncertainty’ as the important leading business concerns. Overall, buyer respondents consider ‘improve customer service’, ‘engage in partnerships to optimize working capital and reduce costs’, and ‘innovate product’ to be the leading actions for suppliers to secure buyers’ business.