Global Oil Multinationals Strategies to Survive the Global Recession and a Lower Oil Price  

Summary

GlobalData’s “Global Oil Multinationals - Strategies to Survive the Global Recession and a Lower Oil Price” will analyse the key strategies that oil and gas companies can adopt in the current economic and business environment. The report will include the strategies for both International as well as National Oil companies. Strategies shall also be discussed for companies across different value chain elements.

Scope

-Current economic environment, financial crisis and its impact on the oil and gas companies.
-Short term risks facing the oil and gas companies including the crude oil price risk and the risks arising out of current credit crisis.
-Long term risks and challenges facing the global oil and gas companies including the risks of depleting oil and gas reserves and a move towards renewables and clean sources of energy.
-Impact of short term and long term risks on the National Oil companies, International Oil companies and Independent oil & gas companies.
-Strategies that International oil companies can adopt to counter the short term and long term risks and challenges.
-Strategies that National Oil companies can adopt to grow and expand in the current economic and financial environment.
-Strategies for small independent companies to survive the current crisis.

Reasons to buy

-Devise strategies to safeguard your interests based on insights on the global financial meltdown and its impact on the global oil and gas industry.
-Navigate the global oil and gas market with information on the major oil and gas companies.
-Analyse the supply-demand situation for oil and petroleum products across the globe to formulate your production plan.
-Benchmark against operations and competitive strategies of the major oil and gas in the world.

1 Table of Contents 2
1.1 List of Tables 4
1.2 List of Figures 5
2 Executive Summary 6
2.1 Oil price volatility and the crunch in capital availability are some of the major short term risks that the companies need to counter effectively 6
2.2 Companies need to be wary of some of the risks that will amplify in the long term 6
2.3 IOCs and major NOCs are in a strong position to capitalize from the current downturn while the smaller companies feel the urgent need for capital discipline 7
3 Global financial crisis, recession and its impact on the global oil and gas industry 8
3.1 Demand growth in the preceding years, 2004 – 2007 8
3.2 Global financial crisis and the US sub prime crisis 12
3.3 Recession in the US and Euro Zone and the global economic slowdown - 2008 14
4 Risks and challenges for the oil and gas industry 15
4.1 Short term risks that are critical for the companies to counter effectively in the immediate future 16
4.2 Long term risks that will gain prominence and affect the company strategies in the future 21
5 Strategies for oil and gas companies in the current scenario 25
5.1 Low and high oil price scenarios 25
5.2 ‘Live within your means’ – the new mantra 26
5.3 Strategy relevance for oil and gas companies 29
5.4 General strategies for the recessionary environment applicable to the companies operating in the industry 30
5.5 Growth strategies for IOCs to benefit from the downturn 37
5.6 Growth strategies for NOCs to weather the recession 39
5.7 Risk management strategies for smaller independent companies to survive the downturn 42
6 Appendix 46
6.1 Methodology 46
6.2 Unit of Measure 48
6.3 Contact Us 48
6.4 About GlobalData 48
6.5 Disclaimer 48

1.1 List of Tables
Table 1: World GDP Growth Rates, 2006 - 2010 9
Table 2: OPEC Spare Capacity (million barrels per day) and Brent Crude Oil Price (US $ per barrel), 2000 – 2009 10
Table 3: Actual and Forecasted Crude Oil and Natural Gas Price, 2008 - 2012 14
Table 4: Capital Expenditure Plan of Major E&P Companies, 2008 - 2009 19
Table 5: Independent E&P Companies, Debt to Proved Reserves and Proved Developed Reserves, $/boe 28
Table 6: Oil and Gas Industry M&A Deals Activity by Volume and Value, Sep 08 – Feb 09 32
Table 7: Top 25 M&A deals in the previous year 33
Table 8: Oil and Gas Industry Asset Transactions by Deal Volume and Value, Sep 08 – Feb 09 34
Table 9: Top Asset Transactions by Private Companies 35
Table 10: Global Top 15 Integrated Oil and Gas Companies, Operational Parameters, 2007 37
Table 11: Top Asset Transactions by NOCs 40
Table 12: Global Top Independent E&P Companies by Production, 2007 43

1.2 List of Figures
Figure 1: Risks and Impact on Oil and Gas Companies 6
Figure 2: Strategy Relevance for Oil and Gas Companies 7
Figure 3: OPEC Spare Capacity (million barrels per day) and Brent Crude Oil Price (US $ per barrel), 2000 – 2009 10
Figure 4: Actual and Forecasted Global Crude Oil Demand and Supply, 2003 – 2009 11
Figure 5: Risks and Impact on Oil and Gas Companies 15
Figure 6: Capital Expenditure Plan of Major E&P Companies, 2008 – 2009 19
Figure 7: OPEC Net Oil Export Revenues, Nominal, $ billion, 2004 - 2010 21
Figure 8: Refinery Margins, $/bbl, Aug 2008 – Jan 2009 24
Figure 9: Strategy Relevance for Oil and Gas Companies 29
Figure 10: Oil and Gas Industry M&A Deals Activity by Volume and Value, Sep 08 – Feb 09 32
Figure 11: Oil and Gas Industry Asset Transactions by Deal Volume and Value, Sep 08 – Feb 09 34
Figure 12: Upstream oil and gas, Deal multiple, $ per boe of proved reserves, 2004 to 2008 41
Figure 13: GlobalData Methodology 46