We use cookies and other tracking technology to improve your browsing experience on our website, to show you personalized content, to analyze our website traffic, and to understand where our visitors are coming from. By browsing our website or clicking Accept Cookies, you consent to our use of cookies and other tracking technologies. Read our Privacy Policy
Guides
5 min

All you need to know about the role of market research in gathering Oil and Gas insights

Oil and gas insights and the role of market research in this

GrapeData
Oct 30, 2022
B2B market research
Industrials

Oil and Gas insights explained 

The oil and gas industry is one of the most profitable and largest in the world. In 2017, it generated more than $4 trillion in revenue for businesses around the globe. The Middle East is also a big player in the oil and gas industry, holding a 27% international share. For companies looking to gather Oil and Gas insights, the industry would be the number one place to go. 

Despite its economic success, however, there are several challenges that impact the market research process for this industry. One of these challenges is geographical. Oil and gas operations are located all over the world so collecting primary data can be challenging due to travel costs as well as security concerns from unstable regions. Another challenge is the lack of competition. Because there aren't many other companies doing similar work within their niche or region, you may not have access to a survey respondent pool large enough to draw conclusions from your study results. A report by McKinsey provides insights into the ever-evolving oil and gas industry. As we transition to a lower-carbon energy system, McKinsey explains how energy prices will continue to evolve. Read more on the report here. Let's dive into the next section, where we explain Oil and Gas insights in market research.

In the Oil and Gas industry, market research is a critical pillar in planning and forecasting

 Market research helps companies make informed decisions about their products, services, and marketing strategies. For example, market research can help you with:

  • Generating new strategies
  • Planning and setting goals
  • Incorporating new products or services into your business offerings

With accurate data from reliable sources at the right time, it's easier to make better-informed decisions that lead to increased ROI on your investment in market research. In this way, gathering Oil and Gas insights can lead to increased ROI. 

When done right, market research can help inform new strategies and programs to increase ROI, expand capabilities and make informed decisions

Market research helps you better understand your customers, competition, and industry so that you can make informed decisions. Market research provides insights on how best to serve your customers and expand into new markets.

At the end of the day, market data is only as good as the strategy it informs. The more effective a marketer's understanding of their industry and its consumers' preferences, the more likely they will be able to develop strategies that will connect with them in meaningful ways.

Gathering accurate insights can be a challenge because of the large-scale nature of the industry

Gathering accurate insights can be a challenge because of the large-scale nature of the industry. Oil and Gas is a global industry, with operations in more than 100 countries around the world. It's also a complex business with many variables to consider. These variables could be different types of companies, people from all walks of life, and different cultures. For example, if you're working for an oil company that's operating in Africa, you'll need to figure out how best to connect with local communities so they understand your goals and their role in achieving them. A good market researcher will have experience with this type of situation. In addition, they've probably worked out how to communicate effectively across all kinds of borders before, whether they're geographic or cultural. 

For any project, there are numerous large data sets to handle such as macroeconomic factors or commodity price trends that can affect local prices

The first step in any project is to thoroughly understand the macroeconomic factors that could impact your business. These include, but are not limited to:

  • Commodity prices and trends
  • Interest rates and inflation
  • Employment data and the unemployment rate

Once this information has been gathered, it can be used to evaluate how local prices may be impacted by changes in the above categories. For example, if commodity prices decline or interest rates increase, there will likely be an overall decline in economic activity; this would lead to lower oil demand as well as lower oil production levels (due to fewer investment dollars).

To gather relevant insight, a company must understand the needs of its buyer personas and key stakeholders in order to craft an effective research study

Oil and Gas insights can be a tricky process to collect data on. To gather relevant information, consider the following:

  • Identify the needs of buyers by identifying the pain points and challenges they are facing.
  • Analyse the data collected from surveys, interviews, and focus groups with key customers or buyers to determine if there is anything missing from your products or services that could help address their pain points.
  • Understand what drives buyer personas (or potential customers) through market research. This is so that you can effectively position yourself against competitors who may be able to offer similar products or services at lower costs than yours are currently priced (and therefore potentially steal away some market share).

The first step in any market research study is to define all the variables that need to be considered to gather Oil and Gas insights

Once you have a complete list, you can begin working on your overall framework and strategy. Before we jump into how exactly you go about defining variables, let's take a look at some examples of common variables in Oil and Gas:

  • Country or region
  • Demographics (age, gender)
  • Geography (city/state/region)
  • Industry sector (oil & gas, renewables)

Now that we've covered what the basic components are for defining variables, let's get into more detail on how to actually define them. Defining variables depends on each survey project and varies according to the nature of the goals of the survey. If you'd like more information, please don't hesitate to reach out to us here. 

After identifying all the initial variables for the project, experts suggest conducting secondary research which uncovered more information about your registered variables and how they will affect your product or operation

Secondary research is a great way to get more information about your variables. A good secondary research strategy can provide you with helpful insights. These insights will help you arrive at the right decision. Experts suggest conducting secondary research which uncovers more information about your registered variables and how they will affect your project.

Secondary research involves searching for data from existing sources, such as interviews, surveys and questionnaires, and online discussion boards. In addition, you can even social media platforms like Twitter or Facebook which have become an important source of market data.

The types of questions you should be asking include:

  • What are my competitors doing?
  • Are there any regulatory changes happening soon?

Primary data collection is critical after secondary research has been conducted

It's important that market research studies are designed to provide raw data that can truly address current challenges or strengthen strategic initiatives. Secondary research can only help you understand what your customers think and feel, but primary market research can uncover specific details about their buying habits, expectations, and preferences.

It's also important to remember that statistics from prior studies are not necessarily representative of the current market or industry trends. This is because they were already collected at a certain point in time. In addition, the data may have changed significantly since then due to external factors like changing regulations or technology advancements which could have affected consumer behaviour significantly during this time period. 

There are many reasons why primary data collection is difficult in any industry but it's especially true for Oil and Gas because of geographical challenges, lack of competition, and access to reliable survey responses

The oil and gas industry is one of the most complex industries to do market research. There are many reasons why primary data collection is difficult in any industry but it's especially true for Oil and Gas because of geographical challenges, lack of competition, and access to reliable survey responses.

Geographical Challenges: The oil and gas industry spans different continents with each region having its own distinct characteristics. Due to this reason, conducting surveys across different regions can be a challenge as well as getting accurate information from each region or country. In addition to this, there are numerous regulatory bodies governing the survey process. This makes it harder for brands looking at entering the market or those already present in certain markets. Read more about the industry challenges here. 

Conclusion

In the Oil and Gas industry, market research is a critical pillar in planning and forecasting. When done right, market research can help inform new strategies and programs to increase ROI. In addition, it can help expand capabilities and make informed decisions. Gathering accurate insights can be a challenge because of the large-scale nature of the industry. For any project, there are numerous large data sets to handle. These include macroeconomic factors or commodity price trends that can affect local prices. If you'd like help in gathering Oil and Gas insights, don't hesitate to contact us