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Section 03 | The Categories
Commodities | Oil and Gas
Oil and Gas
Focus shifts to eficiency
and return on investment
Geopolitics adds complication
The oil and gas category slowed Debates about the beneits and dangers
exploration and focused on eficiency. of hydraulic fracturing, or fracking,
Investor impatience and geopolitical continued in Europe and the US, where
tensions compounded the normal the government deliberated about the
challenges of exploring in some
Canadian-US Keystone pipeline,
of the earth’s most dificult and balancing environmental risks against
fragile environments.
the beneits of increasing energy security
and reducing transportation congestion
With share prices underperforming, oil by lowing oil through the pipeline from
and gas companies felt pressured to the Canadian tar sands to the Gulf
return more proit to shareholders and of Mexico.
invest less in risky, long-term exploration
for oil reserves. In response, the majors These other trends and developments
looked for productivity gains and ways also impacted the category:
to cut capital spending.
Climate change Oil and gas
These actions may trigger a new cycle of companies modiied their tone
divesting assets that entrepreneurs regarding climate change. The debate
acquire to create oil and gas start-ups. now is about how to remediate the Top 10 Oil and Gas
Ironically, one of the companies best problem, not whether or not climate
positioned for this cycle is BP, which sold change is real and results in part from
assets following the Deepwater Horizon burning fossil fuels.
Brand
Brand Value
disaster in 2010. In an agreement with the Value Brand
% Change
US Environmental Protection Agency, the Natural gas From the industry point 2014 $M Contribution
2014 vs 2013
company can again bid for drilling rights of view, one of the most positive
in the Gulf of Mexico.
stories is natural gas. While fracking, 1
ExxonMobil
19,745
1
3%
the hydraulic process of fracturing
To explore in the arctic, which holds rock to extract gas from shale, The availability of natural gas is expected 2 Shell 19,005 1
8%
to draw companies that process it into
around 20 percent of the earth’s remains controversial, environmental the chemicals used in the manufacture of 3
Sinopec
14,269
1
9%
recoverable oil and gas reserves, major concerns have been balanced many products, a development that 4 BP 12,871 1
12%
independent oil companies (IOCs) somewhat by the impact of natural
partnered with Russian companies: gas on reviving the US economy.
would widen the customer base for oil 5
Petrochina
12,413
1
-7%
ExxonMobil with Rosneft; Shell with and gas companies in North America.
6 Chevron 8,738 1
-3%
3%
Gazprom; Total with Lukoil. Russia’s The public voice Although oil and gas At the same time, oil and gas companies
actions in Crimea complicated these companies shape their messages to faced US regulatory restrictions in the 7
Gazprom
6,234
1
1%
relationships. European dependence on reach the oficials who control licenses
natural gas supplied by Gazprom also to operate, social media ampliies the form of limitations on liqueied natural 8 Rosneft 5,549 1
New
factored into the geopolitical calculus.
public’s inluence.
gas (LNG) export. Export would bring
new customers into the market and 9
Total
5,437
1
New
increase demand, lifting the price of Lukoil
At the same time, Chinese national oil New opportunities gas, a good result for the oil and gas 10 4,772 1
-5%
companies (NOCs) were acquisitive last Source: Valuations include data from BrandZM and Bloomberg.
year, with transactions in Canada and the in the Americas
companies but possibly a drag on the Brand contribution measures the inluence of brand alone on earnings, on a scale of 1 to 5, 5 highest.
North Sea and the purchase of the resurging US economy, which beneits
from the low price of gas.
Peruvian holdings of Petrobras, Brazil’s In a remarkable, but relatively unheralded
NOC. Chinese NOCs are especially active development, the US enjoyed energy New opportunities developed in Latin
in Latin America and Western Africa.
self-suficiency. This change potentially America with Mexico’s reform of its oil
will inluence global politics and change Deinition
industry economics, as oil companies can and gas sector, enabling investment in
in one market, North America, both the state oil and gas company, Petroleos The oil and gas category includes
Mexicanos (Pemex) from outside Mexico.
source energy and deliver it to the The change opens the possibility of both private International Oil
world’s largest economy.
strengthening the Pemex brand to Companies (IOCs) and state-
owned National Oil Companies
attract partners.
(NOCs).
106 BrandZM Top 100 Most Valuable Global Brands 2014
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