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An exclusive survey brings an in-depth view on oil business September 22, 2009

Posted by mytruthaboutoil in Oil (general).

A global research led by a Scottish scholar team gives an exclusive and sometimes surprising vision of the oil business and how it adapts itself  to the global crisis.

The full survey is available here.

Please find below an extract of an article about the survey:

The results from a recent international executive survey titled “Riding the
Rapids” were released today in Houston and debated at a panel discussion
downtown. The survey results provided advice and insight into how company
executives are meeting the challenges of today`s unprecedented economic shift
and what they are doing to steer the company in the right direction. The
research was executed by the Aberdeen School of Business (Scotland) and
commissioned by global energy company, Production Services Network (PSN).

The survey participants represented a significant cross-section of the oil and
gas industry. Results were based on interviews with senior leadership from major
oil and gas operations and contracting companies in Canada, UK and USA,
employing more than 740,000 people, in more than 130 countries. The research has
been discussed throughout a series of events in Aberdeen, Calgary, Houston and
Abu Dhabi (later this year).

Houston`s event took place this morning at the Petroleum Club of Houston and
results were debated by local experts. Panelists included: Jon McCarter,
Transaction Advisory Services Leader, Ernst & Young`s Americas Oil and Gas
Center; Ken Medlock, Ph.D., Baker Energy Fellow, Baker Institute, Rice
University; and Lane Sloan, President, Sloan Consulting Services. Leslie Haines,
Editor-in-Chief of Oil and Gas Investor served as the moderator of the

Zeffrey Lucas, U.S. Director of Operations for PSN and emcee of the event noted
that, typically, the oil and gas industry focuses most heavily on hard numbers,
contracts and prices. “But this research reveals a more complex picture,” he
said. “It looked at how some companies are better able to `ride the rapids` when
the going is particularly rough. The results suggest that corporate culture,
management practices, leadership teams and company philosophies play a very
important part in a company`s ability to maneuver its way through a downturn.”

Despite the fact that all of the companies surveyed have coped with the
recessionary challenges that occur in a cyclical industry, the research sought
to discover why some companies are more resilient and optimistic in the face of
similar environmental and economic challenges.

The research, led by Professor Rita Marcella, Dean of Aberdeen Business School,
was a snapshot of deep insight into the industry from the perspective of its
global leaders. It explored a wide spectrum of issues, from the price of oil to
the supply chain, to financial and operational strategies, to people management
and communication.

The results showed that leaders formed two distinct groups. The stronger
companies or `tough ones` (51 percent) claimed they were immune or only
moderately affected by the downturn and welcomed the chance to tackle
recessionary challenges. This group demonstrated sound management practices,
provided a product line in demand, conducted operations across different and
diverse sectors and had intrinsically sturdy financials.

In contrast, `the vulnerable` (49 percent) companies felt exposed and less in
control of their destiny, stating they had been seriously or very badly affected
by the current recession.

Most respondents, whether continuing to perform well or struggling to survive,
spoke about the impact of 1) the banking crisis, 2) the price of oil, 3) the
need for skilled workers, and 4) government incentives. These factors were
especially critical for `the vulnerable,` the companies who were more open to
critical injury from economic factors – and less able to ignore or avoid

Other key findings from the research included:

* 89 percent have been affected by the banking meltdown.
* 78 percent have been hit by volatility in the price of oil.
* 46 percent cited lack of government incentives or support as a factor.
* 31 percent believe the worst of the recession is over.
* 53 percent said they do not see signs of recovery and the industry is still
firmly in the grip of recession.

Lucas added, “What this research does indicate is that oil and gas leaders see
beyond the horizon and are not `caught up` just getting through today. If you
have a strong understanding of where you fit in the marketplace, combined with a
solid corporate culture, all indications are you will prosper through this



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