The existing economic environment is unfavorable for the oil and gas industry, and customer confidence levels remain constant in H1 2016 (January 2016- June 2016). Companies are slightly optimistic about economic conditions in North America due to improvements in the US financial position, accelerating growth in the job market, and increased investments in infrastructure and information technology. Over the next six months the industry would increase its expenditure towards mergers and acquisitions. Moreover, oil and gas companies operating in North America and Europe forecast budget allocation for offshore equipment to remain flat in 2016, compared to 2015.
Respondents hold a favorable opinion of the current economic climate in Asia and the Middle East, but do not hold a very favorable opinion for both Western and Eastern Europe
Industry competitors are slightly more confident about their companys growth prospects compared to industry growth prospects in H1 2016 (January-June 2016)
In total, 35% of respondents note that there will be no change in expenditure on information technology in H1 2016
Performance of developing economies and social unrest in countries of operation are identified to be the important concerns for the business executives operating in the Rest of the World region
Oil and Gas industry respondents operating in Europe intend to allocate the majority of their procurement budget towards operational expenditure, both in 2015 and 2016
Kables Oil and Gas Industry Business Confidence Survey H1 2016 examines executives opinion on business environment over January-June 2016. It also highlights existing economic condition, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, the report includes the trends in the offshore equipment market, analysis of the procurement budget allocations and leading suppliers of offshore equipment.
What else does this report offer?
Current state of the global economy: examines prevailing economic conditions globally and across various regions
Company and industry growth outlook: provides industry executives expectations towards growth prospects of their company and the industry over the next six months
Change in customer confidence: analyzes oil and gas industry executives opinion about the change in customer confidence during H1 2016
Supplier prices projection: determines expected change in supplier prices across various categories and their impact on business confidence
Change in staff headcount and sales performance: tracks expected change in staff headcount and sales for H1 2016 among industry executives globally
Significant investment activities: highlights various areas in which industry executives intend to invest over the next six months
Business concerns: provides information about potential business concerns indicated by survey respondents for H1 2016
Key priorities: identifies top priorities of industry executives operating in various regions
Purchase preferences: analyzing the purchasing behavior towards offshore equipment and investment allocations in the oil and gas equipment categories
Budget allocation: examining total procurement budget split between capital expenditure and operating expenditure, and tracking the changes in the budget for 2015 and expectations for 2016
Helps organizations to make effective business strategy by knowing the prevailing business conditions and sentiment within the oil and gas industry
Organizations will be supported in business expansion decisions by providing information about projected change in sales performance and supplier prices
Helps to improve operational efficiency of the organization by knowing about key priorities and major concerns of oil and gas industry executives
Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2016
Enables organizations to take key decisions on purchase preferences and investments in offshore equipment