DNV GL Released The Latest Oil And Gas Industry Outlook Research Report

- Jan 26, 2018-

The latest oil and gas industry outlook study released by DNV GL, a leading technology consultant for the oil and gas industry, shows that senior oil and gas industry professionals in China expect the industry to expect capex, operating expenses, personnel and R & D spending in 2018 The optimism to the future prospect of China's oil and gas industry reached the highest level since 2015. However,Two-thirds (67%) of respondents expect their company to maintain or increase capital expenditures by 2018, a rate that is more than double the level of last year (29%) and consistent with the global average. In the meantime, more than half (53%) of respondents expect China's cost control measures to further strengthen - up from 23% in 2017. glenflange

 

Confidence and Control: The Oil & Gas Industry Outlook 2018 is the eighth consecutive year DNV GL's Oil and Gas Industry Outlook Study shows confidence, priorities and focus for the year ahead. The report shows that the R & D and innovation spending on the oil and gas industry is about to turnaround after three years of cuts and freeze. More than one-third (36%) of the 813 globally-experienced industry players surveyed expect their organizations to increase spending on research and development and innovation in 2018, compared with 50% of Chinese respondents, up from the level of last year 14% globally, 23% in China) more than doubled.

 

Wu Yi, general manager of regional business development for China, Japan and South Korea at DNV GL Oil & Gas, said: "Innovation and R & D will be the key factors for Chinese companies to be globally competitive in quality. Chinese respondents generally recognize the solution to technology and improvement Investment needs of the program, which is of great significance to the development of the industry.

 

The increased investment expectations in technology development reflect a growing escalation in industry concerns that underinvestment in innovation may be a key barrier to growth in the industry. One third (33%) of Chinese respondents hold this view, while the global ratio is 19%. This factor has jumped from the 7th place last year to second place behind the ranking of potential challengers that hinder the prosperity of China's oil and gas industry, second only to the downturn in the top-ranked oil price. The proportion of oil-price factors was 68% % Down to 47%. glenflange

 

Unlike its global counterparts (31%), only 10% of Chinese respondents consider cost-effectiveness to be the focus of 2018, up from 42% last year. This may be mainly due to the long-term perspective of the Chinese respondents in the industry and the fact that they have succeeded in achieving cost-effective targets at a higher rate than the world (80% vs. 73%).

 

"Each year, our research is designed to measure the sentiment of the industry for the global oil and gas industry, which is the first time we have seen a sharp increase in confidence since 2015. Compared with other regions, Chinese respondents are optimistic about the future of oil and gas business Showing a more optimistic shift in attitude over the past three years, China, like other regions, experienced serious cuts in investment or freeze, although confidence will be accompanied by more positive plans to increase investment to ensure supply and improve emissions and Accelerate research and development, but cost control remains the top priority, "said Arthur Stoddard, regional general manager for Japan, Korea and DNV GL. glenflange

 

Other key findings include:

Other parts of the confidence increase is also more significant. The most anticipated increase in Europe's outlook for the oil and gas industry is most pronounced from 25% last year to 64%, while Latin America rose from 46% last year to 77%, the Asia Pacific rose to 57% from 30% last year, and confidence in North America increased This is a small increase from 49% last year to 57%

Nearly two-thirds (62%) of global respondents expect their organization to maintain or increase their workforce by 2018, compared with 57% in China. This percentage in 2017, 43% of the world, China is 36%

Fifty-eight percent of global respondents expect their organizations to maintain or increase operating expenses by 2018, an increase of 17% from last year's 41%, while China's proportion rose from 19% last year to 50%

The proportion of Chinese respondents expecting their organizations to further invest in digitization will increase from 47% in 2017 to 60% and above the 54% global average