Oil, gas CEOs confident that industry will continue to boom: study
A new report released by KPMG found that a vast majority of oil and gas executives remain confident that the industry has room to grow, despite the rapid speed of technology and innovation that’s beginning to encroach on the industry.
According to Regina Mayor, KPMG’s global head of energy and natural resources, about 88 percent of all CEOs are confident in their companies’ growth, and 85 percent of all oil and gas CEOs are confident in the industry’s growth.
“That compares to only 67 percent of the overall population of CEOs, so you can see with the commodity-price outlook, oil and gas CEOs are quite bullish about the company and the industry in today’s environment,” she said during an interview on Friday with FOX Business’ Maria Bartiromo.
Although Mayor acknowledged that technology has disrupted the status quo of the oil and gas industry, she said that more CEOs are trying to incorporate artificial intelligence and robotic solutions to improve rig safety, dispatch crews fast and identify system failures before they arise.
About 46 percent of CEOs believe that AI could help accelerate revenue growth within a three-year time frame, according to the study.
Mayor also suggested that revenue could go up “quite substantially” if there’s more product available. The price of Brent oil, the international benchmark, is currently trading around $79 per barrel.
“I think they’re considering double-digit growth in revenue,” she said. “At a $70 and $80 price outlook, revenue goes up quite substantially, you could even say it’s 20 percent or higher, and they’re very confident that price is going to stay.”