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Oil & Gas Industry Business Outlook and Procurement Report H1 2016

Oil & Gas Industry Business Outlook and Procurement Report H1 2016

Summary

Amid growing market uncertainty, pricing pressures and falling demand, organizations within the oil & gas industry are planning to increase focus on improving operational efficiency, expanding in current market, and strengthening sustainability framework. Mergers and acquisitions are expected to increase within the oil & gas industry with emerging markets such as the Middle East, China, and India offering prominent growth opportunities. Over one-third of oil & gas industry executives indicate average expenditure of less than US$1 million for drilling outfit and tool equipment. Additionally, 50% of global oil & gas industry business executives from large companies expect a surge in capital expenditure on machinery and equipment purchase in H1 2016. Furthermore, large and small companies highlight a decline in revenue contribution towards the oil & gas equipment market within Middle East & Africa from 2016 to 2020.

Key Findings

Improving operational efficiency and expansion in current market are the top priorities for oil & gas industry executives over the next six months

Overall, 52% of executives expect the US to offer a significant boost to the oil & gas industry over the next six months

The majority of respondents project a significant increase or increase in M&A activity in H1 2016

Market uncertainty, responding to pricing pressure, and falling demand are the pressing business concerns for global oil & gas industry executives

The highest percentage of respondents operating in the Rest of the World and Asia-Pacific indicated preference for outright purchase of offshore equipment Of respondents, 50% anticipate no change in capital expenditure on offshore equipment within Latin America in 2020

Synopsis

Kable’s Oil & Gas Industry Business Outlook and Procurement Report H1 2016 examines executives’ opinion on the business outlook and procurement activities over April–September 2016. Organizations can know about key business priorities, supplier price variations, changes in capital expenditure, and the key equipment categories with highest revenue contribution to the oil & gas industry. Additionally, it provides information categorized by region and company type.

What else does this report offer?

Key business priorities: examines the oil & gas companies’ important priorities for H1 (April–September) 2016

Emerging and developed markets: provides information about key emerging and developed markets that will offer the most growth over H1 2016

Change in M&A activity: analyzes oil & gas industry executives’ opinion on changes in merger and acquisition activity globally

Business concerns: identifies major business concerns that are likely to impact oil & gas companies

Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally

Purchase preferences: analyzing the purchasing behavior towards oil & gas equipment and investment allocations in the oil & gas equipment categories

Budget allocation: examining the total procurement budget split between capital expenditure and operating expenditure, and tracking the changes in the budget for 2016 and expectations for 2017

Equipment categories: highlights the key equipment categories with the highest revenue contribution to the oil & gas industry from 2016–2020

Reasons To Buy

Highlights key business priorities thus helping oil & gas companies to realign business strategy

Develop or adjust business expansion plans by knowing about significant growth offering emerging and developed markets

Make changes in procurement budget allocations through procurement budget projections anticipated by executives for April–September 2016

Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2016

Enables organizations to make key decisions on purchase preferences and investments in oil & gas equipment


Introduction
Definitions
Methodology and sample size
Respondent profile
Global Business Outlook in H1 2015
Strategic business priorities
Emerging markets with significant growth potential
Growth potential for developed markets
Mergers and acquisition
Leading business concerns
Capital expenditure projections
Procurement Behaviors and Strategies
Regional purchase pattern for offshore equipment
Average expenditure on equipment types
Procurement budget allocation and projections
Procurement activity outlook in key areas
Regional offshore equipment budget outlook
Regional revenue contribution outlook
Regional capital expenditure projection for offshore equipment
Equipment wise regional revenue contribution for 2016 and 2020
Appendix
List of Figures
Figure 1: Organizations’ Top Priorities - Overall, Apr 2016–Sep 2016
Figure 2: Organizations’ Top Priorities - By Region, Apr 2016–Sep 2016
Figure 3: Organizations’ Top Priorities - By Company Types, Apr 2016–Sep 2016
Figure 4: Emerging Market with Significant Growth Opportunities - Overall, Apr 2016–Sep 2016
Figure 5: Top Five Emerging Market with Significant Growth Opportunities - By Region, Apr 2016–Sep 2016
Figure 6: Top Five Emerging Market with Significant Growth Opportunities - By Company Types, Apr 2016–Sep 2016
Figure 7: Developing Markets with Prominent Growth Prospects - Overall, Apr 2016–Sep 2016
Figure 8: Top Five Developing Markets with Prominent Growth Prospects - By Region, Apr 2016–Sep 2016
Figure 9: Top Five Developing Markets with Prominent Growth Prospects - By Company Types, Apr 2016–Sep 2016
Figure 10: Change in Mergers and Acquisitions, Overall and Regional, Apr 2016–Sep 2016
Figure 11: Change in Mergers and Acquisitions, By Company Types, Apr 2016–Sep 2016
Figure 12: Major Concerns for Organizations - Overall, Apr 2016–Sep 2016
Figure 13: Major Concerns for Organizations - By Region, Apr 2016–Sep 2016
Figure 14: Major Concerns for Organizations - By Company Types, Apr 2016–Sep 2016
Figure 15: Change in Capital Expenditure in Key Areas - Overall, Apr 2016–Sep 2016
Figure 16: Change in Capital Expenditure in Key Areas - By Region, Apr 2016–Sep 2016
Figure 17: Change in Capital Expenditure in Key Areas - By Company Types, Apr 2016–Sep 2016
Figure 18: Purchase pattern for offshore equipment - Region
Figure 19: Average expenditure on equipment types
Figure 20: Procurement budget allocation and projections in 2016 and 2017 - Region
Figure 21: Procurement activity projections in key areas during 2016 and 2017 - Region
Figure 22: Offshore equipment budget projections (2015–2016) to (2016–2017) - Region
Figure 23: Revenue contribution outlook for oil & gas equipment market 2016 - Region
Figure 24: Revenue contribution outlook for oil & gas equipment market 2020 - Region
Figure 25: Regional revenue contribution projection 2016 to 2020 - By company types
Figure 26: Regional capital expenditure outlook for offshore equipment 2016
Figure 27: Regional capital expenditure outlook for offshore equipment 2020
Figure 28: Regional capital expenditure outlook for offshore equipment 2016 to 2020 - By company type
Figure 29: Equipment wise revenue contribution for 2016 - Region - (North America and Europe)
Figure 30: Equipment wise revenue contribution for 2016 - Region - (Asia-Pacific and Middle East & Africa)
Figure 31: Equipment wise revenue contribution for 2016 - Region - (Latin America)
Figure 32: Equipment wise revenue contribution for 2020 - Region - (North America and Europe)
Figure 33: Equipment wise revenue contribution for 2020 - Region - (Asia-Pacific and Middle East & Africa)
Figure 34: Equipment wise revenue contribution for 2020 - Region - (Latin America)

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