The 7% brand value boost to Shell, the world’s 26th most valuable brand across all industries, has meant the Dutch giant has retained its status at the top of the Brand Finance Oil & Gas 50 rankings. The boost was primarily driven by spikes in oil prices, leading to increased revenue forecasts and therefore higher brand values.Of the three Chinese brands ranked in the Brand Finance Oil & Gas 50, PetroChina (brand value up 18% to $36.8bn) held firm in second place, with fellow Chinese brand Sinopec (up 23% to $29.1bn) recording strength in its upstream and refining business. Defending its 5th place rank, BP (up 16% to $22.7bn) has returned to steady growth since the 2010 Deepwater Horizon incident in the Gulf of Mexico. Under the new leadership of Helge Lund, BP is prioritising the transition towards cleaner energy and aligning a corporate strategy that is fully consistent with the goals of the Paris Agreement.
New entrant to the ranking this year, state-owned oil brand of the United Arab Emirates, ADNOC has had a remarkable few years in which it has rebranded its 13 entities, covering oil and gas, shipping, logistics and schools, and propelled forward in its priorities of seeking out new revenue sources.ADNOC boasts a brand value of $8.9bn and announcing itself on the world stage as a world leading oil and gas brand. Since launching its new unified brand in 2017 and bringing the brand’s various subsidiaries under a common identity, ADNOC has amplified the scale of its business and contribution to the UAE’s economy.
ADNOC has opened its first fuel stations in Dubai and Saudi Arabia, announced plans to increase its oil production capacity to 4 million barrels per day by the end of 2020 and has also been making progress on its integrated 2030 Strategy, which is aimed at balancing market conditions with long-term future growth. As the first Middle Eastern oil and gas brand to be featured in the Brand Finance Oil & Gas 50 2019, ADNOC entered the global capital markets for the first time two years ago and has already taken the title of the world’s fastest growing oil and gas brand. The listing of its fuel distribution unit was touted as the largest IPO on the Abu Dhabi stock exchange in the past decade.At a workshop seminar hosted by Brand Finance on ‘Oil & Gas Brand Values in a 4.0 World’, Omar Zaafrani of ADNOC stressed how the Abu Dhabi oil and gas brand is focused on responding to changes taking place in the world’s energy markets and unlocking huge reserves of previously uneconomical gas that will “put the UAE on a path to gas self-sufficiency and ultimately transition the nation to become a net exporter of natural gas.”
David Haigh, CEO of Brand Finance, commented: “These impressive results are a testament to the leadership of Dr Sultan Al Jaber and his valuable contributions to energy security alongside the total reshaping of the traditional energy business model. ADNOC is certainly well positioned to assert itself on the global stage and to engage as a truly global oil and gas brand.”
Chevron (brand value down 6% to $16bn) in late 2018 announced its investment in EV charging specialist ChargePoint, making it the first investment in such a space for the oil and gas brand. In emerging and alternative energy, Chevron has also invested in fuel cell company Acumentrics, renewable fuel brand Ensyn and carbon capture firm Inventys.Haigh commented: “With the entrance of new digital techniques in oil drilling, such as those employed by AI and cloud technology, oil and gas giants need to be prepared to embrace digitisation as a top priority in order to reduce costs and boost efficiency. It is the brands which explore these radical new tools that will stay ahead of the curve and boost their brand values in the coming years.”
Malaysian brand PETRONAS has held firm in 4th place in this year’s Brand Finance Oil & Gas 50 2019 ranking, with its brand value up 15.8% since last year to $13.3bn. PETRONAS’ brand value increase of $1.8bn over 2018 is not an easy feat for an oil and gas industry brand, given the roller coaster ride the industry has undergone.PETRONAS is a classic example of the brand driving the business success. Most oil and gas brands operate like commodity products given the controlled pricing and low levels of customer engagement opportunity due to the product. However, PETRONAS has redefined how technical superiority through a winning formula in terms of fuel and lube formulations and their partnership with F1 Mercedes team can be a game changer to even the dullest product categories and commodity type brands. Having recently announced their 3-year commitment as the title sponsor of Le Tour de Langkawi, PETRONAS continues its brand building efforts both domestically and internationally.
Aside from calculating overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Along with the level of revenues, brand strength is a crucial driver of brand value. According to this criteria, Russian petrochemical giant Gazprom is the strongest brand in the Brand Finance Oil & Gas 50 2019 ranking. With a Brand Strength Index (BSI) score of 88.3 out of 100, up a whopping 26% from last year, the brand has recorded an ‘AAA’ brand rating, marking an improvement since last year’s ‘AA’ rating.For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.