{"id":7711,"date":"2019-06-20T08:36:36","date_gmt":"2019-06-20T08:36:36","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=7711"},"modified":"2019-06-20T08:39:56","modified_gmt":"2019-06-20T08:39:56","slug":"oil-gas-ceos-record-positive-outlook-of-company-growth-despite-growing-anxiety-over-threats","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/oil-gas-ceos-record-positive-outlook-of-company-growth-despite-growing-anxiety-over-threats\/","title":{"rendered":"Oil & Gas CEOs record positive outlook of company growth despite growing anxiety over threats"},"content":{"rendered":"\n

According to the 2019 Global CEO Outlook <\/strong>published by KPMG International, <\/strong>business leaders in the oil & gas sector are optimistic about the future with 91% confident about their organization\u2019s growth prospects. A high percentage (86%) also recorded confidence in the growth prospects of their industry. <\/p>\n\n\n\n

The survey found that over half (55%) of CEOs in the oil & gas sector projected top-line revenue growth of up to two percent over the next three years, while an optimistic 39% projected their revenue will grow between two to five percent. <\/p>\n\n\n\n

However, the report also revealed business leaders have growing anxieties about existential threats. The 2019 study revealed that oil & gas CEOs ranked cyber security as the biggest threat to organizational growth. This threat is followed by the risks caused by environmental and climate change, disruptive technology, territorialism, and operations. With only a small margin between each of the risks identified, it can be deduced that CEOs are focused on building the organizational resilience needed to master disruption and maintain growth momentum.<\/p>\n\n\n\n

Source: 2019 Global CEO Outlook, KPMG International<\/em><\/p>\n\n\n\n

\"\"


<\/figcaption><\/figure>\n\n\n\n

The risk posed by cyber threats is real, with slightly over half (51%) of CEOs in the oil & gas sector believing that becoming a victim of a cyberattack is now a case of \u2018when\u2019, not \u2018if\u2019. In the same vein, 66% believe that a strong cyber strategy is critical to engender trust with their key stakeholders. Interestingly, KPMG\u2019s study found that over two third (63%) of oil & gas CEOs believe their organizations are prepared for a future cyberattack. <\/p>\n\n\n\n

According to Datuk Johan Idris, Managing Partner of KPMG in Malaysia<\/strong><\/a>, the gravity attached to the cyber security agenda is a positive indication that CEOs in the sector are serious about ensuring business resilience. <\/p>\n\n\n\n

He added: \u201cBusiness leaders must remain vigilant and avoid complacency when it comes to governance in cyber space. We operate in a digital world today where breaches can happen anytime. Complacency will only increase the risks across the business, with lasting impacts not just to the company\u2019s financial performance but also to their reputation. Ultimately, smart leaders are those who are making cyber preparedness a board priority, stress-testing the resilience of their systems and people to withstand an attack.\u201d<\/p>\n\n\n\n

Addressing the climate crisis<\/strong><\/p>\n\n\n\n

Also high on the list of threats to organizational growth is environmental and climate change risk, so much so that 63% of CEOs in the oil & gas sector say that their organization\u2019s growth will depend on their ability to navigate the shift to a low-carbon, clean-technology economy.<\/p>\n\n\n\n

\u201cBusinesses are now operating in a globally connected market. Climate change is impacting the business landscape through economic and infrastructure damage, resource scarcity, disruption in plantation output and supply chain, and changing consumer sentiments and behaviour in support of ethical businesses \u2013 all of these will consequently affect the costs of doing business,\u201d said Datuk Johan.<\/p>\n\n\n\n

He added: \u201cWe\u2019ve personally seen the impact of climate change on our rich coral reefs through KPMG\u2019s Eco Dive program, where we\u2019ve been working with Reef Check Malaysia to monitor the health of our adopted coral reefs since 2007. A learning point we can draw from this program is that when one part of the ecosystem is undermined, the rest of the ecosystem will be compromised if actions go unchecked. Similarly, businesses work in an ecosystem of partners, suppliers, and complementary services that require each component to work efficiently and effectively. Thus, CEOs must look into developing sustainable business plans and policies in order to achieve organizational resilience.\u201d<\/p>\n\n\n\n

In Malaysia, the focus on climate change has gained intensity within the corporate sector and also from the policymakers, leading to increasing forays into renewable energy. Just recently, the Government announced that it is working on a Renewable Energy Transition Roadmap (RETR) through to 2035 that will include strategies and action plans to reach a renewable energy target of 20% by 2025.[1]<\/sup><\/a> Furthermore, in December 2018, the Energy, Science, Technology, Environment and Climate Change Ministry announced a plan to draft the Climate Change Act, and aims to complete a national climate change adaptation and mitigation plan by the end of 2019.[2]<\/sup><\/a><\/p>\n\n\n\n

By prioritizing sustainable business practices, companies in the oil and gas sector can unlock growth and transform performance. Sustainable approaches can create opportunities for new products and services and can also improve the efficiency of how companies manage their resources and operations.<\/p>\n\n\n\n

In pursuit of growth<\/strong><\/p>\n\n\n\n

Strategic alliances with third parties are on the agenda for majority of the CEOs in the oil & gas sector as this is seen to be the most important strategy for achieving their organization’s growth objectives over the next 3 years. <\/p>\n\n\n\n

KPMG\u2019s study also found that 64% of CEOs intend to expand into emerging markets over the next three years, with North America and Asia Pacific topping their list. Out of this, 61% prioritize countries and regions that form part of China\u2019s Belt and Road Initiative. <\/p>\n\n\n\n

Technology drivers<\/strong><\/p>\n\n\n\n

CEOs in the oil & gas sector appear to take a proactive approach on the technology agenda with 73% claiming they are personally leading the technology strategy for their organization. Furthermore, a majority (69%) are increasing capital investments in buying more new technology to improve their organization\u2019s resilience.  <\/p>\n\n\n\n

These business leaders have also revealed that modernizing their workforce is the strategy they rely on the most to ensure their organization is future-ready. On a similarly positive note, 67% of CEOs anticipate to increase their headcount by up to 5% over the next three years. <\/p>\n\n\n\n

A copy of the 2019 Global CEO Outlook report can be downloaded via the KPMG Malaysia Mobile App<\/strong> (IOS<\/a> and Android<\/a>) or from www.kpmg.com\/CEOoutlook<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

According to the 2019 Global CEO Outlook published by KPMG International, business leaders in the oil & gas sector are optimistic about the future with 91% confident about their organization\u2019s … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":7713,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[3296,775],"class_list":["post-7711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-climate","tag-environment","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/oil.jpg?fit=1800%2C993&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-20n","jetpack-related-posts":[{"id":4199,"url":"https:\/\/www.oilnewskenya.com\/index.php\/price-volatility-presents-chance-for-new-growth-strategies-kpmg-outlook\/","url_meta":{"origin":7711,"position":0},"title":"Price Volatility presents chance for new growth strategies \u2013 KPMG Outlook","author":"","date":"December 21, 2015","format":false,"excerpt":"A new global outlook on energy by KPMG Global Energy Institute\u00a0'Global CEO Outlook \u2013 Energy perspective'\u00a0has shown that most energy CEO\u2019s have on their focus the need to develop new growth strategies, as well as reduce cost structures and increase cash flow from operations as capital markets insist on dividends\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/12\/KPMG-outlook.png?fit=508%2C317&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2093,"url":"https:\/\/www.oilnewskenya.com\/index.php\/analyst-predict-flat-growth-outlook-for-oil-and-gas-industry-in-2015\/","url_meta":{"origin":7711,"position":1},"title":"Analyst predict flat growth outlook for oil and gas industry in 2015","author":"Samuel Kamau Mbote","date":"November 27, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] A new global oil and gas outlook by Moody\u2019s has projected that the industry will witness a flat growth in 2015 a downgrade from the earlier expectation of more than 5 percent growth largely attributed to the drop in crude oil prices. According to the report 2015 and\u2026","rel":"","context":"In "Prices"","block_context":{"text":"Prices","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/prices\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5030,"url":"https:\/\/www.oilnewskenya.com\/index.php\/world-bank-raises-2016-oil-price-forecast\/","url_meta":{"origin":7711,"position":2},"title":"World Bank Raises 2016 Oil Price Forecast","author":"","date":"August 9, 2016","format":false,"excerpt":"The World Bank is raising its 2016 forecast for crude oil prices to $43 per barrel from $41 per barrel due to supply outages and robust demand in the second quarter. Oil prices jumped 37 percent in the second quarter of 2016 due to disruptions to supply, particularly wildfires in\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5628,"url":"https:\/\/www.oilnewskenya.com\/index.php\/diversification-consolidation-and-ongoing-efficiency-measures-will-be-hallmarks-of-oil-and-gas-sector-in-2017\/","url_meta":{"origin":7711,"position":3},"title":"Diversification, consolidation and ongoing efficiency measures will be hallmarks of oil and gas sector in 2017","author":"","date":"January 26, 2017","format":false,"excerpt":"New research by DNV GL, the technical advisor to the oil and gas industry, shows oil and gas companies seeking to rebalance business portfolios and reorganizing for a new era. In a period of drawn-out recovery, almost half (49%) of senior oil and gas professionals surveyed expect their businesses to\u2026","rel":"","context":"In \"agility\"","block_context":{"text":"agility","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/agility\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/03\/grains-agriculture-crude-oil-etfs.jpg?fit=428%2C400&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1524,"url":"https:\/\/www.oilnewskenya.com\/index.php\/african-oil-energy-sector-fuelling-global-investor-growth-dhl\/","url_meta":{"origin":7711,"position":4},"title":"African oil & energy sector fuelling global investor growth – DHL","author":"Samuel Kamau Mbote","date":"July 30, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] While Oil and Gas activity in West Africa is nothing new, it is the activity in East Africa which is creating a stir amongst exploration companies and of course, their suppliers. This is according to Steve Harley, President, DHL Energy Sector who says that while Angola and Nigeria\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2144,"url":"https:\/\/www.oilnewskenya.com\/index.php\/exxonmobils-outlook-for-energy-sees-global-demand-fuelled-by-increase-in-consumption-by-developing-nations\/","url_meta":{"origin":7711,"position":5},"title":"ExxonMobil\u2019s outlook for energy sees global demand fuelled by increase in consumption by developing nations","author":"Samuel Kamau Mbote","date":"December 9, 2014","format":false,"excerpt":"Significant growth in the global middle class, expansion of emerging economies and an additional 2 billion people in the world will contribute to a 35 percent increase in energy demand by 2040, according to a new report released today by ExxonMobil. According to the 2015 Outlook for Energy: A View\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=7711"}],"version-history":[{"count":3,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7711\/revisions"}],"predecessor-version":[{"id":7716,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7711\/revisions\/7716"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/7713"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=7711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=7711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=7711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}