The buoyant mood of senior oil and gas execs about the global economy improving has wilted, going by new research from EY.
The analysts’ bi-annual Capital Confidence Barometer found oil and gas executives are more cautious than ever before.
Andy Brogan, EY’s Global Leader for Oil and Gas Transaction Advisory Services said: “A conservative view on oil and gas pricing, combined with pressure to deliver capital returns has led to the industry adopting a slightly more cautious approach.”
Little more than half (54%) of the oil and gas respondents viewed the global economy as improving, a sharp drop from 71% in October 2013.
Shareholders appear to have raised their voices, as more than 90% of people surveyed suggesting issues raised by shareholders – such as paying more attention to costs – have shaped boardroom agendas.
As for company deals, Mr Brogan said it is “more of a buyers’ market now than we have been for some time”.
He added: “We expect the general note of caution to continue to deter some of the bigger deals but expect that deal volumes will remain reasonably robust. The continuing focus on emerging market activity appears to be here to stay.”
The survey polled 1,600 senior executives in more than 70 countries including 169 oil and gas executives.