2018 oil and gas industry and chemicals industry executive survey

Upstream

Despite an uptick in optimism, executives are sending mixed messages on the health of the oil and gas industry. Upstream leaders seem to be split between focusing on growth, maintaining the status quo, and streamlining the business. Most upstream companies are focused on short- to medium-term opportunities that will impact their bottom line today or tomorrow—as opposed to next year.

Back to top

Midstream

Among all the oil and gas industry subsectors, the capex outlook has turned most positive for the midstream sector due to rising growth opportunities and the upturn in upstream. This optimism is also being driven by recovery in prices, projected consolidation, and the rising export profile of the United States.

As executives plan their growth in midstream, controlling costs and enhancing operations remain key challenges.

Back to top

Downstream

As the sector looks ahead, regulatory challenges (including environmental and permitting issues) are top of mind, likely reflecting the number of challenges projects have faced. While peak demand is being widely discussed in the oil and gas industry, downstream companies don’t seem as concerned by biofuels or declining consumer demand.

Back to top

Chemicals

Most executives in the chemicals industry are optimistic with respect to growth, consolidation opportunities, and realizing its digital potential.

But some executives have concerns about regulatory changes, geopolitical uncertainty, and changing customer behavior and requirements. These shifts are transforming the way most chemical businesses operate, so traditional approaches that are still at the core of business strategy might not be as effective in the future.

Back to top

Digital

The digital maturity of the oil and gas industry and chemicals industry is still relatively moderate compared to other industries. But digital seems to play a bigger role in accelerating digital innovation in the chemicals industry.

Executives expect artificial intelligence, machine learning, and analytics to have the largest impact due to their early return on investment and proven role in achieving business objectives.

Back to top