As oil and gas brands negotiate the impact of the Covid-19 pandemic, the world’s 50 most beneficial oil and gas brands have lost a median of 16% of brand name value.
Oil and gas brands play a major role in the worldwide economy, each in providing energy for all times today and in defining the character of energy in the long run. For national oil corporations (NOCs), economic contributions to national wealth are of paramount importance inside their mandate. To ensure a sustainable economic contribution, NOCs must increasingly use latest sources of energy for the world after oil.
In turn, integrated international oil corporations (IOCs) are guided by the need of their shareholders and the specter of increased litigation. Particularly in Europe, the expansion of ESG investments requires the IOC to act quickly to retain and attract investors. Increasingly, each NOCs and the IOC are under pressure to scale back carbon footprints, increase sustainability and move away from traditional oil.
“Global dependence on oil is so entrenched that oil consumption fell by only 25% at the peak of COVID travel restrictions. Oil corporations cannot just flip a switch; critical processes similar to vaccine development and distribution rely upon oil. However, as global temperatures rise, humanity desperately needs a rapid yet smooth transition to latest types of energy. Oil corporations are best placed to resolve this problem and lead the transition to cleaner energy. Major oil brands have the knowledge and resources to deliver the energy transition. The Brand Finance Oil & Gas 50 rating will reflect brands which can be doing just that,” said Savio D’Souza, Valuation Director at Brand Finance.
In Asia, Saudi Aramco maintained its position because the most beneficial Asian brand (second place on this planet after Shell) because of the Brand Finance Global 500 2021 report, which values the oil giant’s kingdom at $37.5 billion. “Aramco is the hidden giant of the oil industry whose brand is finally in the public eye. It has always been known as a B2B (business to business) brand but has aspirations to become a well-known consumer brand,” said David Haigh, CEO of Brand Finance.
In Southeast Asia, Petroliam Nasional Bhd (Petronas) retained its position as ASEAN’s most beneficial brand within the Brand Finance Global 500 report for 2021. The Malaysian oil company said it also stays ninth on the brand valuation consultancy’s list of world brands. oil and gas (O&G) brands. The Petronas Brand Strength Index also improved to 87 points from 86.3 in 2020. The index evaluates a brand’s performance on intangible metrics in comparison with its competitors.
Brand equity refers back to the present value of profits associated specifically with a brand’s popularity. Organizations own and control these earnings through their ownership of trademark rights. All brand valuation methodologies generally try to discover this, although the approach and assumptions vary. As a result, published brand values may vary. These differences are much like the way in which equity analysts present different valuations of corporations. The only approach to know the “true” value is to see what people actually pay.
Source: BrandFinace “Global 500”
