Oil and gas capital confidence barometer

Economic outlook

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The global economy is stabilizing and economic optimism is increasing.

While the slowdown has lingered in Europe, some rays of hope are emerging. Consumer and business confidence is rising in the US and Japan, and the emerging economies are generally recovering from their slowdown.

EY chart - perspective on global economy, 2013

Notably, the oil and gas companies in our survey are significantly more optimistic about the future of the global economy than they were six months ago, implying a positive environment for deal-making.

Boardroom agendas temper some of their optimism with conservatism

EY chart – How has the boardroom agenda at your company changed from 2012-2013

Reflecting to some degree both the increasing optimism and a lingering streak of conservatism, oil and gas boardroom agendas are changing. Risk management has once again moved to the top of the agenda, and concern around regulatory issues has moved up to the second slot. Another conservative agenda item, corporate governance, also rose sharply to the third position. Capital allocation, which had topped the boardroom agenda in our April survey, dropped to fourth position. Interestingly, efficiency and cost control, which topped the agenda for the global sample and was the second-highest agenda item for oil and gas respondents in our April survey, dropped sharply to fifth position in our October survey.

Other trends we observe include:

  • Rising confidence spurs expectations for higher growth
  • Optimism is increasing sharply but confidence is mixed
  • Local economic sentiment also strengthens
  • Local confidence is also mixed
  • Increasing economic confidence drives job creation
  • Boardroom agendas largely reflect local concerns

Q. What is your perspective on the state of the global economy today?

EY chart - perspective on global economy, 2013

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Q. How has the boardroom agenda at your company changed from a year ago?

EY chart – How has the boardroom agenda at your company changed from 2012-2013

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