Aramco has retained its position as the world’s second most valuable oil and gas brand, with Abu Dhabi National Oil Company (ADNOC) moving up one place to ninth most valuable, according to the annual Brand Finance Oil & Gas 50 ranking, which ranks the oil and gas industry’s top 50 most valuable and strongest brands in the world
After a tough two years due to wildly fluctuating demand, the oil and gas sector is powering ahead, with the world’s 50 most valuable oil and gas brands achieving an aggregate growth of 8% this year, according to the report, produced by brand valuation consultancy Brand Finance.
Aramco (brand value up 16% to US$43.6bn) is the world’s second most valuable oil and gas brand and has substantially recovered its brand value lost during the pandemic, according to the report. Aramco has been serving significantly increased demand for oil and gas products, correlated with large fiscal stimulus programmes initiated around the world last year. The company has continued to invest heavily in its brand to support growth in both core and growth businesses through a global campaign as well as investments in sports – from Formula 1 to golf.
“Aramco is well placed to drive significant further brand value growth supported by surging commodity prices driven by the recovery in global energy demand as key economies reopen and travel restrictions ease amidst higher COVID-19 vaccination rates around much of the developed world,” comments Brand Finance.
Abu Dhabi National Oil Company (ADNOC) continues to achieve significant ongoing growth in brand value, having delivered 174% growth in brand value since the start of their brand transformation journey in 2017. This year, its brand value is up a further 19% to US$12.8bn, and ADNOC has improved its ranking by one place to become the ninth most valuable oil and gas brand in the world.
Beyond the oil and gas sector, ADNOC was also the UAE’s most valuable brand overall, and the second most valuable brand in the Middle East region. With an eye on the future, and in line with the UAE leadership’s 2050 net zero strategy, ADNOC is embracing the energy transition through several strategic initiatives including its global clean energy joint venture with TAQA and Mubadala on renewable energy and green hydrogen. The ADNOC brand is also likely to benefit from UAE’s effort to become a global sustainability leader as the nation plans to host COP28, the 2023 UN Climate Change Conference.
Further, ADNOC’s Dr Sultan Ahmed Al Jaber is the top brand guardian CEO for the global oil and gas sector, according to Brand Finance’s Brand Guardianship Index.
The report finds that Shell retains its position as the world’s most valuable brand in oil and gas, valued at US$49.9 bn. Despite COVID, the conflict in Ukraine, and increased awareness about ESG causing widespread havoc to the oil and gas sector globally, Shell (brand value up 18%) has not only withstood the global disruption, but been able to grow its brand value this year, according to the report.
Shell’s brand is increasingly focused on developing an energy transition strategy as it aims to become a net-zero emissions energy business by 2050, in step with society’s progress towards the goal of the Paris Agreement on climate change. While the energy transition brings risks to Shell, it also creates new opportunities for the brand to develop. Increasingly, it appears likely to sustainably lead the global oil and gas industry transition to a net zero energy system.
Also ranking in the top 10 most valuable brands are PetroChina, Sinopec, BP, TotalEnergies, Chevron, Petronas and ExxonMobil.
David Haigh, chairman and CEO of Brand Finance, commented, “The energy transformation is both the greatest challenge and the greatest opportunity facing the oil and gas sector. The industry can be both optimistic and realistic about the risks and opportunities that lie ahead, but it will be tough for brands to simultaneously navigate the recovery from Covid, the conflict in Ukraine, and broader concerns about environmental sustainability in the future. Shell, Aramco, and others, will be challenged to transform in coming years to leverage their brands to deliver for their customers.”