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Oil & Gas
The Oil & Gas industry has played a pivotal role in propelling the economies of developing countries by providing the energy required to drive industries. At the end of 2006, the Asia Pacific region had 40.5 billion barrels and 523.15 trillion cubic feet of oil and natural gas reserves – attracting heavy investments. For developed countries, the Oil & Gas industry continues to be the primary driving force that mobilises the industrial process and infrastructure flow. The Oil & Gas industry comprises of 3 key components: exploration & production (upstream), transportation (midstream) and refining (downstream). As a gauge of how robust the oil and gas markets were, the Shanghai initial public offering of the biggest oil company in Asia, PetroChina, was the largest in the industry. It attracted US$9.058 billion worth of subscriptions in November 2007 according to a report on Research and Markets. Over a period of six months, the share prices of leading oil and gas companies enjoyed a 104.02% increase in 2007.
Driven by the demand from rapidly developing BRIC economies, the Oil & Gas industry will continue to play a major role in the manner which the global economy evolves. The demand for oil in the Asia-Pacific region was estimated to have increased to 25 million barrels a day for 2007 by the International Energy Agency according to the Research and Markets report. Most evidently, factors such as volatility of energy prices due to geopolitical developments, natural disasters and unstable demand, will remain as key challenges to the Oil & Gas industry. In the earlier half of 2008 from April to July, oil prices were consistently traded above $100 a barrel according to Dow Jones. The Star reported that oil prices fell to almost US$71 per barrel in Asia in August 2009 – a result of lower crude oil demand by the US, showing the disparity of prices as a result of the global slowdown.
The economic recession has resulted in a downturn in the refining sector due to global recession according to Fitch Ratings. It is expected that smaller, less efficient refineries without a strong brand will shut down if the situation persists. Asian refiners in particular, may face cash flow problems. A strong brand therefore becomes particularly pertinent in such economic situations to differentiate one’s brand in a sea of other oil & gas or related companies.
Our experience in the Oil & Gas industry has seen us strengthening the brands of our clients, translating the performance of their brands into greater shareholder value. More importantly, the brands we have helped to build are not only highly differentiated from its competitors, but are also socially-responsible, accepted and respected by businesses, investors and consumers.
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