Analysis
2017 oil and gas industry executive survey
Trends show a pause in industry confidence
After the emergence of a more optimistic outlook in 2016, oil and gas industry executives appear to have reverted to a more cautious outlook on the future in 2017. What’s behind the shift in sentiment? Explore the findings from Deloitte’s 2017 oil and gas industry survey to learn more about the trends shaping the oil and gas industry and the opportunities and challenges expected across the value chain.
Explore Content
- 2017 oil and gas industry outlook overview
- Which sector appears the most confident?
- Upstream
- Midstream
- Downstream
2017 oil and gas industry outlook overview
The overall industry has become more cautious once again.
Prices
Since last year, oil and gas price expectations have softened.
Capex
Capital spend across the industry is expected to slow.
M&A
Industry caution still leaves M&A activity in a holding pattern.
GDP
Perhaps unusually, broader economic expectations seem to be a lesser factor in current industry confidence.
Which sector appears the most confident?
Capital spending might be the strongest clue.
Upstream
Headcount
2015 and early 2016 saw sharp declines in employment. After recent stability, is headcount attrition over?
Costs
With more uncertainty, cost control is still critical.
Rigs
Rig deployment expectations are another indicator of caution.
Policy or geopolitical issues
The upstream sector is more likely to be exposed to business environment risks.
Strategic priorities
Near-term strategic priorities are all responding to the slow pace of the recovery.
Midstream
Growth drivers
The midstream sector is well positioned for growth after the downturn.
Challenges
Controlling costs remains critical as the pace of the recovery has slowed.
Opportunities
New infrastructure needs will provide opportunities when the recovery accelerates.
Downstream
Refined product exports
The downstream sector is expecting a slow down of exports to global markets.
Demand
A number of factors contribute to demand uncertainty.
Challenges
Controlling costs remains critical as the pace of the recovery has slowed.
Opportunities
Demand factors still dominate identified opportunities.
Key takeaways
About the survey
Deloitte, together with the research firm Harrison Group, a YouGov company, undertook the 2017 US oil and gas industry survey (the “2017 survey” or “survey”) in the summer of 2017. The survey explores the near-term outlook of oil and gas professionals across all sectors of the industry. The findings cover survey respondents’ expectations for the remainder of 2017 and 2018, including: key areas of business and market environment, strategic priorities, and challenges and opportunities down the oil and gas value chain.
The survey consisted of over 250 structured interviews with industry professionals with experience ranging from five to more than thirty-one years, and from all four oil and gas industry subsectors: upstream, oilfield equipment and services, midstream, and downstream.