Half of oil & gas professionals expect to diversify business

Half of senior oil and gas professionals expect their businesses to diversify into opportunities outside the industry. That’s according to a new survey of 723 industry leaders by DNV GL, […]

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By Jonny Bairstow

Half of senior oil and gas professionals expect their businesses to diversify into opportunities outside the industry.

That’s according to a new survey of 723 industry leaders by DNV GL, the technical advisor to the sector, which states oil and gas firms are seeking to widen and rebalance their asset portfolios to secure long term sustainable growth.

The survey suggests it is now seeing deep strategic changes in favour of sustainable growth taking place in the industry, outside of cyclical patterns and trends.

More than a quarter of those surveyed said they expected their business to increase investments in renewables in 2017 as climate change risks become more apparent.

However, 80% of respondents said they still saw long term opportunities for gas – 77% believe it will become an increasingly important component of the global energy mix in the next decade.

Confidence in oil and gas growth for the year ahead has stabilised for now at 32%, compared with 30% this time last year, in line with the price of oil, the survey adds.

Despite this, confidence in overall prospects for individual companies is down to 44% from 50% in 2015.

Elisabeth Tørstad, CEO of DNV GL Oil & Gas, said: “The number of companies we now see pursuing opportunities beyond oil and gas signals a step change in the reshaping of the sector and demonstrates its ability to adapt and build a more robust, diverse and sustainable energy future.

“Despite the drawn-out recovery, investments are still being planned across the value chain. In 2017 we will see broadening of business portfolios and consolidations for growth as a way of reorganising for the future.”