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Oil and Gas

Panel Report

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Global Oil and Gas Survey 2013–2014:

Market Trends, Marketing Spend and Sales Strategies

in the Global Oil and Gas Industry

Reference code: OG2190PR

Published: June 2013

ICD Research

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London EC4Y 0BS

United Kingdom

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Website: www.icd–research.com

TABLE OF CONTENTS

Global Oil and Gas Survey 2013–2014: Market Trends, Marketing Spend and Sales Strategies


© ICD Research. This product is licensed and is not to be photocopied Published: June 2013

TABLE OF CONTENTS

1 Introduction ........................................................................................................................... 9

1.1 What is this report about? ................................................................................................................ 9

1.2 Definitions ........................................................................................................................................ 9

1.3 Methodology ...................................................................................................................................10

1.4 Profile of survey respondents ..........................................................................................................12

1.4.1 Profile of buyer respondents ..................................................................................................................... 12

1.4.2 Profile of supplier respondents ................................................................................................................. 13

2 Executive Summary ............................................................................................................ 15

3 Global Oil and Gas Industry Dynamics ............................................................................. 17

3.1 Revenue Growth Projections in the Global Oil and Gas Industry .....................................................18

3.1.1 Revenue growth projections by company type ......................................................................................... 20

3.1.2 Revenue growth projections by region ..................................................................................................... 22

3.1.3 Revenue growth projections by company turnover .................................................................................. 24

3.1.4 Revenue growth projections by senior level respondents ........................................................................ 25

3.2 Future Developments in Business Structure in the Global Oil and Gas Industry ..............................27

3.2.1 Future developments in business structure by buyers ............................................................................. 27

3.2.2 Future developments in business structure by suppliers ......................................................................... 29

3.2.3 Future developments in business structure by region .............................................................................. 32

3.2.4 Future developments in business structure by company turnover ........................................................... 33

3.2.5 Future developments in business structure by senior level respondents ................................................. 33

3.3 Change in Company Strategies in the Global Oil and Gas Industry .................................................35

3.3.1 Change in leading company strategies by buyers .................................................................................... 35

3.3.2 Change in leading company strategies by suppliers ................................................................................ 38

3.3.3 Change in leading company strategies by region .................................................................................... 39

3.3.4 Change in leading company strategies by company turnover.................................................................. 41

3.4 Merger and Acquisition Activity Projections in the Global Oil and Gas Industry ...............................43

3.4.1 M&A activity projections by buyers ........................................................................................................... 44

3.4.2 M&A activity projections by suppliers ....................................................................................................... 48

3.4.3 M&A activity projections by region ............................................................................................................ 51

3.4.4 M&A activity projections by company turnover ......................................................................................... 52

3.5 Capital Expenditure Projections in the Global Oil and Gas Industry ................................................53

3.5.1 Projection of capital expenditure by buyers .............................................................................................. 53

3.5.2 Projection of capital expenditure by suppliers .......................................................................................... 57

3.5.3 Projection of capital expenditure by region............................................................................................... 58

3.5.4 Projection of capital expenditure by company turnover ............................................................................ 59

3.6 Planned Change in Staff Recruitment in the Global Oil and Gas Industry........................................61

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3.6.1 Planned change in staff recruitment by buyers ........................................................................................ 61

3.6.2 Planned change in staff recruitment activity by suppliers ......................................................................... 63

3.6.3 Planned change in staff recruitment activity by region ............................................................................. 64

3.6.4 Planned change in staff recruitment activity by company turnover .......................................................... 65

4 Global Oil and Gas Industry Market Growth Outlook ....................................................... 67

4.1 Global Oil and Gas Industry - Demand in Emerging Markets ...........................................................69

4.1.1 Demand in emerging markets by buyers .................................................................................................. 69

4.1.2 Demand in emerging markets by suppliers .............................................................................................. 74

4.1.3 Demand in emerging markets by region ................................................................................................... 76

4.1.4 Demand in emerging markets by company turnover ................................................................................ 77

4.2 Global Oil and Gas Industry - Growth Projections in Developed Countries ......................................80

4.2.1 Growth projections in developed countries by buyers .............................................................................. 80

4.2.2 Growth projections in developed countries by suppliers .......................................................................... 85

4.2.3 Growth projections in developed countries by region ............................................................................... 87

4.2.4 Growth projections in developed countries by company turnover ............................................................ 90

5 Threats and Opportunities for the Global Oil and Gas Industry ..................................... 92

5.1 Global Oil and Gas Industry: Leading Business Concerns for 2013–2014 .......................................93

5.1.1 Leading business concerns for 2013–2014 by company type ................................................................. 96

5.1.2 Leading business concerns for 2013–2014 by region .............................................................................. 97

5.1.3 Leading business concerns by company turnover ................................................................................... 98

5.2 Global Oil and Gas Industry: Key Supplier Actions to Secure Buyer Business ................................99

5.2.1 Actions to secure buyer business by buyer respondents ....................................................................... 100

5.2.2 Actions to maintain and secure buyer business by region ..................................................................... 102

5.2.3 Actions to maintain and secure buyer business by turnover .................................................................. 103

5.2.4 Actions to maintain and secure buyer business by procurement budget ............................................... 105

6 Global Oil and Gas Industry - Supplier Marketing Spend Activity ................................ 106

6.1 Annual Marketing Budgets - Global Oil and Gas Industry Suppliers .............................................. 107

6.1.1 Annual marketing budgets by region - global oil and gas industry suppliers ......................................... 108

6.1.2 Annual marketing budgets by company turnover - global oil and gas industry suppliers ...................... 109

6.2 Planned Change in Marketing Expenditure Levels - Global Oil and Gas Industry Suppliers .......... 111

6.2.1 Planned change in marketing expenditure by region - global oil and gas industry suppliers ................. 113

6.2.2 Planned change in marketing expenditure by turnover - global oil and gas industry suppliers ............. 114

6.2.3 Planned change in marketing expenditure by decision making authority - global oil and gas industry

suppliers .............................................................................................................................................................. 116

6.2.4 Planned change in marketing expenditure levels vs. revenue growth expectations .............................. 117

6.3 Future Investment by Media Channels - Global Oil and Gas Industry Suppliers ............................ 118

6.3.1 Future investment by media channel by region - global oil and gas industry suppliers ......................... 121

6.3.2 Future investment by media channel by company turnover - global oil and gas industry suppliers ...... 122

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6.4 Global Oil and Gas Industry Suppliers' Future Investment in Marketing and Sales ........................ 123

6.4.1 Planned investment in marketing and sales technologies by region - global oil and gas industry

suppliers .............................................................................................................................................................. 125

6.4.2 Planned investment in marketing and sales technologies by turnover - global oil and gas industry

suppliers .............................................................................................................................................................. 126

7 Global Oil and Gas Industry - Marketing and Sales Behaviors and Strategies in 2013–

2014 ........................................................................................................................................... 128

7.1 Key Marketing Aims for 2013–2014 - Global Oil and Gas Industry Suppliers ................................ 129

7.1.1 Key marketing aims by region - global oil and gas industry suppliers .................................................... 130

7.1.2 Key marketing aims by company turnover - global oil and gas industry suppliers ................................. 132

7.2 Global Oil and Gas Industry - Essential Amendments to Marketing Activities in 2013–2014 ......... 134

7.2.1 Amendments to marketing activities by region - global oil and gas industry suppliers .......................... 136

7.2.2 Amendments to marketing activities by company turnover - global oil and gas industry suppliers ....... 138

7.3 Global Oil and Gas Industry - Critical Success Factors for Choosing a Marketing Agency ............ 140

7.3.1 Critical success factors by region - global oil and gas industry suppliers .............................................. 142

7.3.2 Critical success factors by company turnover - global oil and gas industry suppliers............................ 143

8 Appendix ............................................................................................................................ 145

8.1 Global Oil and Gas Industry Survey Results – Closed Questions .................................................. 145

8.2 Methodology ................................................................................................................................. 161

8.3 Contact us ..................................................................................................................................... 161

8.4 About ICD Research ..................................................................................................................... 161

8.5 Disclaimer ..................................................................................................................................... 161

TABLE OF CONTENTS




LIST OF FIGURES

Figure 1: Global Oil and Gas Industry - Revenue Growth Optimism (%), 2012–2013 .......................................................................................... 20 Figure 2: Global Oil and Gas Industry - Revenue Growth Optimism by Company Type (%), 2013–2014 ............................................................ 22 Figure 3: Global Oil and Gas Industry - Revenue Growth Optimism by Region (%), 2013 ................................................................................... 24 Figure 4: Global Oil and Gas Industry - Revenue Growth Optimism by Company Turnover (%), 2013 ................................................................ 25 Figure 5: Global Oil and Gas Industry - Revenue Growth Optimism by Senior Level Respondents (%), 2013 ..................................................... 26 Figure 6: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Buyers (%), 2013 ..................................................... 29 Figure 7: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Suppliers (%), 2013 .................................................. 31 Figure 8: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Region (%), 2013 ...................................................... 32 Figure 9: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Turnover (%), 2013 ................................................... 33 Figure 10: Global Oil and Gas Industry - Key Expected Changes In Business Structure by Senior Level Respondents (%), 2013 ...................... 34 Figure 11: Global Oil and Gas Industry - Change in Leading Company Strategies by Buyers (%), 2013 ............................................................. 37 Figure 12: Global Oil and Gas Industry - Change in Leading Company Strategies by Suppliers (%), 201 ........................................................... 39 Figure 13: Global Oil and Gas Industry - Change in Leading Company Strategies by Region (%), 2013 ............................................................. 40 Figure 14: Global Oil and Gas Industry - Change in Leading Company Strategies by Company Turnover (%), 2013 .......................................... 42 Figure 15: M&A Activity Projections - Global Oil and Gas Industry (%), 2013 ..................................................................................................... 44 Figure 16: M&A Activity by Buyers - Global Upstream Oil and Gas Companies (%), 2012–2013 ........................................................................ 46 Figure 17: M&A Activity by Buyers - Global Downstream and Midstream Oil and Gas Companies (%), 2012–2013 ........................................... 48 Figure 18: Global Oil and Gas Industry - M&A Activity by Suppliers (%), 2012–2013 .......................................................................................... 50 Figure 19: Global Oil and Gas Industry - M&A Activity by Region (%), 2013 ....................................................................................................... 51 Figure 20: Global Oil and Gas Industry M&A Activity by Company Turnover (%), 2013 ...................................................................................... 52 Figure 21: Global Oil and Gas Industry - Projection of Capital Expenditure by Buyers - Global Upstream Oil and Gas Companies (%), 2013 .... 55 Figure 22: Global Oil and Gas Industry - Projection of Capital Expenditure by Buyers - Global Downstream and Midstream Oil and Gas

Companies (%), 2013 ......................................................................................................................................................................................... 56 Figure 23: Global Oil and Gas Industry - Increase in Capital Expenditure by Oil and Gas Industry Suppliers (%), 2013 ...................................... 58 Figure 24: Global Oil and Gas Industry - Projection of Capital Expenditure by Region (%‘increase’ responses), 2013 ........................................ 59 Figure 25: Global Oil and Gas Industry - Projection of Capital Expenditure by Company Turnover (%‘increase’ responses), 2013 ..................... 60 Figure 26: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Buyers (%), 2013 ................................................................. 62 Figure 27: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Oil and Gas Industry Suppliers (%), 2013 ............................ 64 Figure 28: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Region (%), 2013 ................................................................. 65 Figure 29: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Company Turnover (%), 2013 .............................................. 66 Figure 30: Global Oil and Gas Industry - Top Ten Growth Regions , 2013 .......................................................................................................... 68 Figure 31: Global Oil and Gas Industry - Top Five Emerging Markets , 2013 ...................................................................................................... 69 Figure 32: Global Oil and Gas Industry - Demand in Emerging Markets by Buyers - Upstream Oil and Gas Companies (%) , 2013 ................... 72 Figure 33: Global Oil and Gas Industry - Demand in Emerging Markets by Buyers - Downstream and Midstream Oil and Gas Companies (%) ,

2013 ................................................................................................................................................................................................................... 73 Figure 34: Global Oil and Gas Industry - Demand in Emerging Markets by Suppliers (%), 2013 ......................................................................... 75 Figure 35: Global Oil and Gas Industry - Demand in Emerging Markets by Region (%), 2013 ............................................................................ 77 Figure 36: Global Oil and Gas Industry - Demand in Emerging Markets by Company Turnover (%), 2013 ......................................................... 79 Figure 37: Global Oil and Gas Industry - Top Five Developed Regions by Growth (%), 2013 ............................................................................. 80 Figure 38: Global Oil and Gas Industry - Growth Projections in Developed Countries by Buyers - Upstream Oil and Gas Companies (%), 2013 83 Figure 39: Global Oil and Gas Industry - Growth Projections in Developed Countries by Buyers - Downstream and Midstream Oil and Gas

Companies (%), 2013 ......................................................................................................................................................................................... 85 Figure 40: Global Oil and Gas Industry - Growth Projections in Developed Countries by Suppliers (%), 2013 .................................................... 87 Figure 41: Global Oil and Gas Industry - Growth Projections in Developed Countries by Region (% 'increase'), 2013 ........................................ 89 Figure 42: Global Oil and Gas Industry - Growth Projections in Developed Countries by Company Turnover (% 'increase'), 2013 ..................... 91 Figure 43: Global Oil and Gas Industry - Leading Business Concerns (%), 2013–2014 ...................................................................................... 94 Figure 44: Global Oil and Gas Industry: Top Five Leading Business Concerns, 2013–2014 ............................................................................... 95 Figure 45: Global Oil and Gas Industry: Securing Buyer Business: Buyer vs. Supplier Responses (%), 2013 ....................................................101 Figure 46: Global Oil and Gas Industry - Securing Buyer Business by Turnover (%), 2013 ................................................................................104 Figure 47: Annual Marketing Budgets - Global Oil and Gas Industry Suppliers (%), 2012–2013 ........................................................................108 Figure 48: Annual Marketing Budgets by Region - Global Oil and Gas Industry Suppliers (%), 2013 .................................................................109 Figure 49: Annual Marketing Budgets by Turnover - Global Oil and Gas Industry Suppliers (%), 2013 ..............................................................110 Figure 50: Planned Change in Marketing Expenditure Levels - Global Oil and Gas Industry Suppliers (%), 2012–2013 ....................................................112 Figure 51: Global Oil and Gas Industry - Planned Change in Marketing Expenditure Levels by Region (%), 2013 .............................................114 Figure 52: Global Oil and Gas Industry - Planned Change in Marketing Expenditure by Company Turnover (%), 2013 .....................................115 Figure 53: Planned Change in Marketing Expenditure Levels by Decision Making Authority (%), 2013 ...............................................................116 Figure 54: Future Investment by Media Channels - Global Oil and Gas Industry Suppliers (%), 2013 ................................................................120

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Figure 55: Global Oil and Gas Industry Suppliers - Investment in Media Channels by Region (%), 2013 ...........................................................121 Figure 56: Global Oil and Gas Industry Suppliers - Investment in Media Channels by Turnover (%), 2013 ........................................................122 Figure 57: Planned Investment in Marketing and Sales Technologies - Global Oil and Gas Industry Suppliers (%), 2013 .................................125 Figure 58: Planned Investment in Marketing and Sales Technologies by Company Turnover - Global Oil and Gas Industry Suppliers (%), 2013................127 Figure 59: Key Marketing Aims - Global Oil and Gas Industry Suppliers (%), 2013 ............................................................................................130 Figure 60: Key Marketing Aims by Region - Global Oil and Gas Industry Suppliers (% ‘very important’ and ‘important’ responses), 2013 .........131 Figure 61: Key Marketing Aims by Turnover - Global Oil and Gas Industry Suppliers (% ‘very important’ and ‘important’ responses), 2013 ......133 Figure 62: Amendments to Marketing Activities - Global Oil and Gas Industry Suppliers (%), 2013 ...................................................................135 Figure 63: Amendments to Marketing Activities by Region - Global Oil and Gas Industry Suppliers (%), 2013 ..................................................137 Figure 64: Amendments to Marketing Activities by Turnover - Global Oil and Gas Industry Suppliers (%), 2013 ...............................................139 Figure 65: Critical Success Factors - Global Oil and Gas Industry Suppliers (%), 2013 ...............................................................................................141 Figure 66: Critical Success Factors by Turnover - Global Oil and Gas Industry Suppliers (%), 2013 ..................................................................144

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LIST OF TABLES

Table 1: Global Oil and Gas Industry Survey Respondents by Company Type, 2013 ......................................................................................... 12 Table 2: Global Oil and Gas Industry Buyer Respondents by Job Role (%), 2013 .............................................................................................. 12 Table 3: Global Oil and Gas Industry Buyer Respondents by Company Turnover (%), 2013 .............................................................................. 13 Table 4: Global Oil and Gas Industry Buyer Respondents by Region (%), 2013 ................................................................................................. 13 Table 5: Global Oil and Gas Industry Supplier Respondents by Job Role (%), 2013 ........................................................................................... 14 Table 6: Global Oil and Gas Industry Supplier Respondents by Company Turnover (%), 2013 ........................................................................... 14 Table 7: Global Oil and Gas Industry Supplier Respondents by Region (%), 2013 ............................................................................................. 14 Table 8: Global Oil and Gas Industry - Revenue Growth Optimism (%), 2012–2013 ........................................................................................... 19 Table 9: Global Oil and Gas Industry - Revenue Growth Optimism by Buyers (%), 2012–2013 .......................................................................... 21 Table 10: Global Oil and Gas Industry - Revenue Growth Optimism by Suppliers (%), 2012–2013..................................................................... 21 Table 11: Global Oil and Gas Industry - Revenue Growth Optimism by Region (%), 2013 .................................................................................. 23 Table 12: Global Oil and Gas Industry - Revenue Growth Optimism by Company Turnover (%), 2013 ............................................................... 24 Table 13: Global Oil and Gas Industry - Revenue Growth Optimism by Senior Level Respondents (%), 2013 .................................................... 25 Table 14: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Buyers (%), 2013 .................................................... 28 Table 15: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Suppliers (%), 2013 .................................................. 31 Table 16: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Region (%), 2013 ..................................................... 32 Table 17: Global Oil and Gas Industry - Key Expected Changes in Business Structure by Turnover (%), 2013 .................................................. 33 Table 18: Global Oil and Gas Industry - Change in Leading Company Strategies by Buyers (%), 2013 .............................................................. 37 Table 19: Global Oil and Gas Industry - Change in Leading Company Strategies by Suppliers (%), 2013 .......................................................... 38 Table 20: Global Oil and Gas Industry - Change in Leading Company Strategies by Company Turnover (%), 2013 ........................................... 41 Table 21: M&A Activity by Buyers - Global Upstream Oil and Gas Companies (%), 2012–2013 ......................................................................... 46 Table 22: M&A Activity by Buyers - Global Downstream and Midstream Oil and Gas Companies (%), 2012–2013 ............................................. 48 Table 23: Global Oil and Gas Industry - M&A Activity by Suppliers (%), 2012–2013 ........................................................................................... 50 Table 24: Global Oil and Gas Industry - M&A Activity by Region (%), 2013 ........................................................................................................ 51 Table 25: Global Oil and Gas Industry M&A Activity by Company Turnover (%), 2013........................................................................................ 52 Table 26: Global Oil and Gas Industry - Projection of Capital Expenditure by Buyers - Global Upstream Oil and Gas Companies (%), 2013 ..... 54 Table 27: Global Oil and Gas Industry - Projection of Capital Expenditure by Buyers - Global Downstream and Midstream Oil and Gas

Companies (%), 2013 ......................................................................................................................................................................................... 56 Table 28: Global Oil and Gas Industry - Projection of Capital Expenditure by Suppliers (%), 2013 ..................................................................... 57 Table 29: Global Oil and Gas Industry - Projection of Capital Expenditure by Region (% ‘increase’ responses), 2013 ........................................ 59 Table 30: Global Oil and Gas Industry - Projection of Capital Expenditure by Company Turnover (% ‘increase’ responses), 2013 ..................... 60 Table 31: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Buyers (%), 2013 .................................................................. 62 Table 32: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Suppliers (%), 2013............................................................... 63 Table 33: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Region (%), 2013 .................................................................. 64 Table 34: Global Oil and Gas Industry - Planned Change in Staff Recruitment by Company Turnover (%), 2013 ............................................... 65 Table 35: Global Oil and Gas Industry - Demand in Emerging Markets by Buyers - Upstream Oil and Gas Companies (%) , 2013 .................... 71 Table 36: Global Oil and Gas Industry - Demand in Emerging Markets by Buyers - Downstream and Midstream Oil and Gas Companies (%) ,

2013 ................................................................................................................................................................................................................... 73 Table 37: Global Oil and Gas Industry - Demand in Emerging Markets by Suppliers (%), 2013 .......................................................................... 75 Table 38: Global Oil and Gas Industry - Demand in Emerging Markets by Region (%), 2013.............................................................................. 76 Table 39: Global Oil and Gas Industry - Demand in Emerging Markets by Company Turnover (%), 2013 ........................................................... 78 Table 40: Global Oil and Gas Industry - Growth Projections in Developed Countries by Buyers - Upstream Oil and Gas Companies (%), 2013. 82 Table 41: Global Oil and Gas Industry - Growth Projections in Developed Countries by Buyers - Downstream and Midstream Oil and Gas

Companies (%), 2013 ......................................................................................................................................................................................... 84 Table 42: Global Oil and Gas Industry - Growth Projections in Developed Countries by Suppliers (%), 2013 ..................................................... 86 Table 43: Global Oil and Gas Industry - Growth Projections in Developed Countries by Region (% 'increase'), 2013 ......................................... 88 Table 44: Global Oil and Gas Industry - Growth Projections in Developed Countries by Company Turnover (% 'increase'), 2013 ...................... 90 Table 45: Global Oil and Gas Industry- Leading Business Concerns (%), 2013–2014 ........................................................................................ 94 Table 46: Global Oil and Gas Industry - Leading Business Concerns by Company Type (%), 2013–2014 .......................................................... 96 Table 47: Global Oil and Gas Industry - Leading Business Concerns by Region (%), 2013–2014....................................................................... 97 Table 48: Global Oil and Gas Industry - Leading Business Concerns by Company Turnover (%), 2013–2014 ................................................................. 98 Table 49: Global Oil and Gas Industry - Securing Buyer Business: Buyer Responses (%), 2013 .......................................................................100 Table 50: Global Oil and Gas Industry - Securing Buyer Business: Buyer vs. Supplier Responses (%), 2013 ....................................................101 Table 51: Global Oil and Gas Industry - Securing Buyer Business by Region (%), 2013 ....................................................................................102 Table 52: Global Oil and Gas Industry - Securing Buyer Business by Turnover (%), 2013 .................................................................................103

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Table 53: Global Oil and Gas Industry: Securing Buyer Business by Procurement Budget (%), 2013 ................................................................105 Table 54: Annual Marketing Budgets - Global Oil and Gas Industry Suppliers (%), 2012–2013 .....................................................................................107 Table 55: Annual Marketing Budgets by Region - Global Oil and Gas Industry Suppliers (%), 2013 ..................................................................109 Table 56: Annual Marketing Budgets by Turnover - Global Oil and Gas Industry Suppliers (%), 2013 ...............................................................110 Table 57: Planned Change in Marketing Expenditure Levels - Global Oil and Gas Industry Suppliers (%), 2012–2013 ....................................................112 Table 58: Global Oil and Gas Industry - Planned Change in Marketing Expenditure Levels by Region (%), 2013 ..............................................113 Table 59: Global Oil and Gas Industry - Planned Change in Marketing Expenditure by Company Turnover (%), 2013 ......................................115 Table 60: Planned Change in Marketing Expenditure Levels by Decision Making Authority (%), 2013 ...............................................................116 Table 61: Planned Change in Marketing Expenditure Levels by Revenue Growth Expectations (%), 2013 ........................................................117 Table 62: Future Investment by Media Channels - Global Oil and Gas Industry Suppliers (%), 2013 .................................................................119 Table 63: Planned Investment in Marketing and Sales Technologies - Global Oil and Gas Industry Suppliers (%), 2013 ...................................124 Table 64: Planned Investment in Marketing and Sales Technologies by Region - Global Oil and Gas Industry Suppliers (%), 2013 ..................126 Table 65: Key Marketing Aims - Global Oil and Gas Industry Suppliers (%), 2013 .............................................................................................130 Table 66: Key Marketing Aims by Region - Global Oil and Gas Industry Suppliers (% ‘very important’ and ‘important’ responses), 2013 ..........131 Table 67: Key Marketing Aims by Turnover - Global Oil and Gas Industry Suppliers (%‘very important’ and ‘important’ responses), 2013 ........132 Table 68: Amendments to Marketing Activities - Global Oil and Gas Industry Suppliers (%), 2013 ....................................................................135 Table 69: Amendments to Marketing Activities by Region - Global Oil and Gas Industry Suppliers (%), 2013....................................................136 Table 70: Amendments to Marketing Activities by Turnover - Global Oil and Gas Industry Suppliers (%), 2013 .................................................138 Table 71: Critical Success Factors - Global Oil and Gas Industry Suppliers (%), 2012–2013 ........................................................................................141 Table 72: Critical Success Factors by Region - Global Oil and Gas Industry Suppliers (%), 2013 ......................................................................142 Table 73: Critical Success Factors by Turnover - Global Oil and Gas Industry Suppliers (%), 2013 ...................................................................143 Table 74: Survey Results – Closed Questions ...................................................................................................................................................145

INTRODUCTION




1 Introduction

1.1 What is this report about?

This report is the result of an extensive survey drawn from ICD Research’s exclusive panel of leading oil and

gas industry companies. As uncertainty in the markets contributed by the continuance of the European debt

crisis, gradual recovery in the US markets and currency rate fluctuations led to weak growth in global economic

markets, this report provides the reader with a definitive analysis of the industry outlook and explores how

opportunities and demand are set to change in 2013–2014. Additionally, this report presents comparative

analysis between two years of survey results (wherever applicable). Furthermore, it not only grants access to

the opinions and strategies of business decision makers and competitors, but also examines their actions

surrounding business priorities; additionally, it provides access to information categorized by region, company

type, and sizes.

The report also examines:

Revenue growth projections: projects revenue growth projections of chief stakeholders of the industry

Market-specific growth opportunities: identifies top growth regions so that companies can allocate their

marketing activities and budgets effectively

Mergers and acquisitions: projections surrounding merger and acquisition (M&A) activity and core

influencing factors

Capital expenditure: identifies the change in capital expenditure of oil and gas industry buyer or a supplier

company to provide a balanced future growth with capital returns.

Leading business concerns: identifies leading business concerns and subsequent efforts to negate them

Marketing expenditure trends: tracks the marketing budgets of supplier companies and forecasts the

possible changes in expenditure

Key factors for marketing agency selection: provides insights into the marketing needs of supplier

companies

1.2 Definitions

Upstream oil and gas companies: These companies are involved in exploration, recovery, and production of

crude oil and natural gas. The upstream sector includes the search for potential underground or underwater oil

and gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and

bring crude oil and raw natural gas to the surface.

Downstream and midstream oil and gas companies: These companies are involved in refining crude oil,

and the selling and distribution of natural gas and products derived from crude oil. Similarly, midstream oil and

gas companies operations are also included in the downstream category.

Capital expenditure (capex): This covers research and development (R&D), and the procurement,

maintenance, transportation, and storage of oil and gas products. It also includes expenditure on capacity

expansion, new machinery procurement, and the upgrade of plants and equipment.

INTRODUCTION




Oil refinery: It is known to be an industrial plant used to process and refine crude oil into petroleum products

such as naphtha, gasoline, diesel, asphalt base, heating oil, kerosene, and liquefied petroleum gas.

Oil and natural gas fields: Deposits under the earth’s surface rich in oil are known as oil fields, and deposits

rich in natural gas are called natural gas fields.

Oil and gas industry suppliers: These consist of industry suppliers, service providers, industry observers,

and a small number of non-supplier industry observers such as business process outsourcing (BPO),

outsourcing companies, and contractors.

Liquefied natural gas: Liquefied natural gas takes up about 1/600th the volume of natural gas in the gaseous

state. The properties of the gas include a colorless, odorless, non-toxic, and non-corrosive nature.

Compressed natural gas: It is defined as a fossil fuel substitute for gasoline, diesel, or propane and LPG. It

is more environmentally friendly and a clean alternative in comparison to other fuels.

E-procurement (electronic procurement): Business-to-business (B2B) procurement and marketing of

services using the internet and other IT solutions, such as electronic data interchange (EDI) and enterprise

resource planning (ERP).

Company turnover: Companies with turnover of less than US$100 million are identified in the report as small

companies. Companies with turnover between US$100 million–US$1 billion are referred to as medium-sized

companies and those with turnover of more than US$1 billion as large companies.

1.3 Methodology

1) Online Survey

The research sourced in this report is based on the surveyed opinions and forward-looking projections of highly

engaged and senior industry professionals. ICD Research conducted an extensive online survey during March

2013, which was taken by 227 senior global industry buyers and suppliers. These respondents cover C-levels,

directors, managers, and technical and professional staff.

These respondents are drawn from the ICD Research Industry Insight Panel, an exclusive industry panel

covering over two million business professionals worldwide. Respondents represent a dedicated professional

community where participants are surveyed ‘in context’, drawn from our industry magazine and media

communities, including the readership of World Expo magazine, hydrocarbons-technology.com, offshore-

technology.com and delegate relationships across our global industry conference and forum events. These

business communities are made up of highly engaged, qualified professionals who rely on our flagship media

brands in their respective markets, enabling ICD Research to access knowledgeable and informed industry

opinion.

INTRODUCTION




2) Secondary Research

Comprehensive international desk research was conducted across following industry sources that focused on

determining the latest themes, issues, market trends and examples of latest products. In addition, latest

examples have been included to validate the primary research observations.

Industry associations

International organizations

Industry news websites

3) Data Analysis and Report Writing

The results of this research have been analyzed and evaluated by ICD Research’s in-house industry-specific

analysts. Our analysts’ research and analysis expertise, pedigree in marketing, market research, consulting

background in their industry, and ongoing continuous education on leading macro-economic and industry news

and events have shaped their analytical judgments and conclusions of the industry opinions gathered.

4) Quality Control

Detailed process manuals

Standardized report templates and accompanying style guides

Advanced data analysis and survey programming tools

QC checklists

Randomized spot checks on data integrity

Senior level QC

SAMPLE PAGES




Figure 3: Global Oil and Gas Industry - Revenue Growth Optimism by Region (%), 2013

Source: ICD Research Industry Survey 2013 © ICD Research

1.3.1 Revenue growth projections by company turnover

An analysis of respondent anticipations by company turnover reveals that 61%, 53%, and 64% of respondents

from small, medium-sized, and large companies are ‘more optimistic’ about revenue growth of their companies

in 2013 respectively. Survey results also show that 22%, 28%, and 26% of respondents from small, medium-

sized, and large companies are ‘neutral’ about revenue growth in 2013 respectively, while 12% and 15% of

respondents from small and medium-sized organizations are ‘less optimistic’ about revenue growth respectively.

Table 12: Global Oil and Gas Industry - Revenue Growth Optimism by Company Turnover (%), 2013

Revenue optimism Less than US$100 million US$100 million–US$1 billion More than US$1 billion

More optimistic 61% 53% 64%

Neutral 22% 28% 26%

Less optimistic 12% 15% 4%

Don’t know 3% 4% 6%

Not applicable 2% 0% 0%

Overall 100% 100% 100%


59

51

61

72

27

29

21

20

11

14

11

4

3

4

5

2

2

2

2

North America

Europe

Asia-Pacific

Rest of the World

How optimistic are you about revenue growth for your company in 2013 as compared to 2012? (% respondents by region)

More optimistic Neutral Less optimistic Don't know Not applicable

SAMPLE PAGES




Table 37: Global Oil and Gas Industry - Demand in Emerging Markets by Suppliers (%), 2013

Region Percentage of supplier respondents

Brazil 31%

Middle East 28%

India 23%

China 22%

Russia 15%

Indonesia 14%

Saudi Arabia 14%

Mexico 12%

South Africa 12%

Vietnam 12%

Eastern Europe 9%

Argentina 7%

Turkey 4%

Others 25%

N.B. Responses are not mutually exclusive, and therefore do not equal 100%


Figure 34: Global Oil and Gas Industry - Demand in Emerging Markets by Suppliers (%), 2013


3128

23 22

15 14 1412 12 12

97

4

25

Which emerging markets do you expect to offer your industry the most growth in 2013–2014 (% supplier respondents)

SAMPLE PAGES




1.3.2 Planned change in marketing expenditure by decision making authority - global oil and gas industry

suppliers

According to the survey results, 70% of respondents each from the ‘decision makers’ and ‘decision influencers’

segments expect an increase in their overall marketing budgets in 2013.

Please note that decision maker respondents comprise CEOs, MDs, VPs, SVPs, HODs, and directors.

Table 60: Planned Change in Marketing Expenditure Levels by Decision Making Authority (%), 2013

Change Decision makers Decision influencers

Increase by 25%+ 13% 14%

Increase of 10–25% 14% 18%

Increase of 5–10% 26% 19%

Increase of 1–5% 17% 19%

No change 18% 19%

Decrease of 1–5% 2% 2%



Decrease by 25%+ 3% 0%

Not applicable 2% 6%

Overall 100% 100%

N.B. Results may not equal 100% due to rounding method


Figure 53: Planned Change in Marketing Expenditure Levels by Decision Making Authority (%), 2013


By what amount do you expect your company to increase or decrease marketing expenditure in 2013? (% respondents by puchasing decision authority)

13%

14%

26%17%

18%

2%

2%2%

3%

2%

Decision makers

14%

18%

19%19%

19%

2%3%

1%

6%

Decision influencersIncrease by 25%+

Increase of 10–25%

Increase of 5–10%

Increase of 1–5%

No change

Decrease of 1–5%

Decrease of 5–10%

Decrease of 10–25%

Decrease by 25%+

Not applicable

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