Oil and gas capital confidence barometer

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Our tenth Barometer shows a more conservative view in oil and gas price outlook, which has become the consensus within the industry. Combined with the pressure on capital returns, attributable to multiple cost and delivery issues, this is driving a renewed focus.

The changing dynamics within the M&A market is moving it from one which has been relatively “seller friendly” for the last decade, to one where the buyers have a stronger position. Last year, this dynamic manifested itself by a huge build up in unsold assets, remaining in the market for a considerable period. This year, consensus on price outlook has fed through to consensus in asset valuations transaction volumes, which will pick up, but perhaps at lower unit volumes than previously expected.

Key findings for oil and gas

  • 91% view the global economy as stable or improving, up slightly from October 2013
  • 87% view credit availability as stable or improving
  • 86% expect to grow or at least keep their current workforce in the next 12 months
  • 40% view cost reduction and operational efficiency as their organization’s main focus over the next 12 months
  • 51% view optimizing as the dominant focus of their organization’s capital agenda
  • 30% expect to pursue an acquisition in the next 12 months
  • 52% view market share growth in new markets as a main driver of planned acquisition activity
Photo of EY's Andy Brogan

Andy Brogan
Global Oil & Gas for
Transaction Advisory Leader

Photo of EY's Pip McCrostie

Pip McCrostie
Global Vice Chair
Transaction Advisory Services


About this survey

The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook and identifies boardroom trends. It is a regular survey of senior executives from large companies around the world, conducted by the Economist Intelligence Unit (EIU). This report’s findings are based on a panel of more than 1,600 executives in 54 countries surveyed in March 2014, including 145 oil and gas executives.