2010 Russian Oil & Gas Outlook Survey
2009, a year of recession, has come to an end and it is high time to sum up the results and identify perspectives for further development in the oil and gas sector.
Deloitte performs its Oil & Gas Outlook Survey annually in order to pool the opinions of oil & gas sector managers regarding the current issues of industry development. This year, the questionnaire was prepared based on the changes that have taken place in the global economy. Many of these questions deal with the crisis and the possible ways of ending it. As in previous years, we have interviewed the managers of companies operating in the hydrocarbon exploration, production and processing markets in Russia. The scope of our survey encompassed both large national and international vertically integrated companies, as well as independent small and mid-sized enterprises. The questionnaire was completed by the managers of both state owned and private oil and gas companies.
The survey was intended to review whether the oil and gas companies’ market position was sustainable in the current economic environment and to identify their expectations for the future. As a result, we have concluded that this sector’s companies possess the essential degree of stability that allows them to define the sector as sustainable and the least affected by the crisis. However, investments toward increasing production were reduced with no reduction of investments in social initiatives, environmental issues and personnel training. What is more, no reductions were made to occupational safety.
Half of the survey participants feel that the sources of their competitive advantage are efficient asset management and minimization of administrative and production costs, as well as control over strategy and efficiency management program implementation. A third of the respondents give preference to the introduction of new technologies and innovations and risk management.
The growth of the oil and gas sector seen last year implies not only an increase in the development of new fields’, but also the efficient development of existing fields, as well as an increase in the depth of crude oil processing and development of oil products marketing and related services networks. The focus is not currently on quantitative but qualitative indicators, which characterizes the sector as innovative and intent on improving efficiency. Companies are making efforts to concentrate on core assets only, continue optimizing costs by improving contractor efficiency, reduce transportation costs and implement new, energy-saving technologies.
Thus, the crisis is characterized not only by negative events, but also includes some positive trends such as increased attention to quality and efficiency, risk management and the introduction of new technologies.
Below are the details of our survey. We would like to thank everyone who took part and wish you every success in 2010!