Managing Director, Energy and Industrials
Insight | Brand
Brand is critical,
closer to home
The US has supplanted Saudi Arabia as the swing producer. We’re now seeing a dash toward technology to improve the production of all the wells being drilled. It’s a step change. The US is becoming the world’s largest producer primarily from on-shore resources, and that’s happening with half the number of rigs that were running just three or four years ago. Efficiencies and new technologies have changed the cost structure of oil and gas drilling to supply more oil with less investment of time and money. To me that says the shale revolution will be around for quite a while. It also means that brands are operating much closer proximity to their customers in North America and need to be more responsive in their messaging. It’s not enough to be a good operator, oil and gas companies need to be good neighbors.
Associate Director, Business Science
Insight | Brand
use of data
will grow ROI
Oil and gas brands need to harness the power of data and analytics in brand building, and move faster. In brand building, the test launch approach favored by engineers is not going to make a dent in the perceptions brands hope to shatter. Moving fast means committing to a branding strategy and investing substantial support behind it.
On another hand, clever tactical investment also has a time and place. Brands can use data and analytics to define segments for viable campaigns, with minimal investment. In addition, brands need to prepare a variety of content, especially for key segments. Consumers have come to expect personalized, relevant messages. The well targeted campaigns will positively impact ROI. Lastly, brands need to invest in robust data collection. Tracking the lead performance indicators in real-time allows for continuous optimization.
Insight | Brand
The transition to renewables is happening increasingly quickly and the proportion of capital focused on renewables as a proportion of total capital on energy projects is growing very quickly. Some brands are seeing the transition happen quicker than they expected even 12 months ago. This transition will take all energy brands through a period of unprecedented uncertainty, driven in part by regulatory change and in part by technological change. Brands have an opportunity to help people move through this period of uncertainty, but to do so brands need to fundamentally reposition themselves because if you look at the demographics in developed countries, it’s millennials who will quickly shape these markets. And in these markets the integrated energy companies will be up against brands like Tesla, Uber, and Google, in a mobility space, rather than traditional competing brands. These are brands that tend to communicate in a more purposeful way. The integrated oil companies will need to pay more attention to brand, be more agile, and speak to the changing interests of consumers and potential employees.
Insight | Communication
must be grounded
in today’s realties
A tension exists between how consumers perceive oil and gas companies today and how the companies communicate their visions for the future. The companies often feature their most innovative programs that involve new energy solutions. But consumers, especially young people, are skeptical and sometimes consider the communication greenwashing. Messages about the future of energy need to be more grounded in the current business reality. Consumers don’t see a lot of change yet, but they see communication about futuristic energy tech. The disconnect undercuts the credibility of the business. That gap needs to be closed.