Business Outlook 2020 - Autumn Snapshot

BUSINESS OUTLOOK 2020: Autumn Snapshot

Industry Sentiment

With the scale and severity of the challenges that industry continues to face, it is unsurprising that the sentiment expressed by companies across the oil and gas industry has declined significantly this year. OGUK has been tracking this on a quarterly basis throughout the year, as outlined below. Coming into 2020, OGUKmembers were expressing increased positivity in their outlook for the year ahead, in line with initial forecasts for stable investment and activity levels. However, the subsequent price collapse and necessary revisions to company business plans and strategies completely changed the industry landscape in a short period of time, as reflected in the sentiment levels seen throughout Q2 and Q3. The level of sentiment, and scale of change, indicated by both supply chain and E&P companies has followed a similar trend throughout the year. Looking forward, companies outline little change in their current outlook for 2021, reflecting the levels of uncertainty in the market and reinforcing the fact that current challenges are likely to persist. Companies across industry indicate that it will take time to recover activity levels which have had to be postponed and deferred from 2020.

10

10 = High Sentiment & Outlook 0 = Neutral Sentiment & Outlook -10 = Low Sentiment & Outlook

8

Industry Trend E&P Companies Supply Chain Companies

6

4

2

0

Q1 2020

Q2 2020

Q3 2020

2021 Outlook

-2

Business Sentiment Index

-4

-6

-8

Source:OGUK

-10

6