Wednesday, 13 April 2016

How Oil and Gas Market Research Help Firms Survive in a Competitive Market

The recent spate of volatility in the oil and gas market has shaken the world markets quite significantly. The major and minor producers have applied their mix of politics and pressure to the cauldron resulting in quite a yo-yo market in the last few years. This volatility is expected to continue though experts caution that the downtrend is more likely to continue, and an upswing seems highly unlikely until the countries get their act together. These predictions are bolstered by overall industry numbers as players across market segments try to battle reduced growth expectations and a slump in their share prices.

With oil and gas being the fuel for world business growth, knowing the state of the overall oil and gas market and even regional and local factors are crucial for firms and industries. This information is now even more critical with the overall unstable state of the global oil and gas industry and the world economy. This information will help businesses to adapt, survive and emerge unscathed through the downturn.

Oil and gas market research helps the larger enterprises to take appropriate purchase decisions for their business. Whether it is a downstream company or an industrial organization, knowing what is happening on the ground can mean the difference between profit and loss, a difference of billions of dollar at the very least. Information such future production numbers from a region, setting up of new pipelines between production fields and ports, opening of new ports for containers, shipping concessions to certain businesses, etc. provide a clear road map for strategic business decisions that affect the future of thousands of their employees.

For smaller local players, data such as a key tax initiative helping reduce overall outgo, the progress of a new storage terminal in the region, increased demand from nearby areas or other industries, efforts to curb price volatility, etc. help them take important business decisions.

With the wheels of global business being dependent on oil and gas, any business directly affected by the industry needs to keep itself updated of recent trends and information in the market. Reports on the sector help them look behind the numbers and get facts and inferences. This information helps them refine strategies and formulate practical initiatives that allow them to withstand risks and continue their growth story.

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