Brand Finance Ranks Most Valuable, Strongest Oil and Gas Brands

Brand Finance, which describes itself as the world’s leading brand valuation consultancy, has revealed the results of its latest annual report on the “most valuable and strongest” oil and gas brands.

Shell ranked as the world’s most valuable oil and gas brand, Brand Finance highlighted in a release posted on its website, adding that the company recorded a four percent increase in brand value to $50.3 billion. Aramco, PetroChina, Sinopec, and BP rounded out the top five most valuable oil and gas brands, Brand Finance pointed out in the release.

“Shell has remained resilient despite facing challenges such as falling revenues, a decline in enterprise value, and a drop in Brand Strength (BSI) score,” Brand Finance stated in the release.

“Brand Finance research shows Shell’s decline in brand strength is primarily caused by lower recommendations, expectations, and current revenue,” it added.

Savio D’Souza, Brand Finance’s Senior Director, said in the release, “as Shell continues to uphold its position as the world’s leading oil and gas brand, it highlights the remarkable stability of the brand in spite of questions about the long-term corporate strategy of the company”.

“Correspondingly, the top 10 oil and gas brands have different views on their role in the energy transition; it remains to be seen which brand positioning drives the optimal value to the respective businesses in the long term,” he added.

Rigzone asked Shell for comment on achieving the top ranking. A Shell spokesperson declined to issue a statement. 

Brand Finance highlighted in its release that Petronas was ranked as the oil and gas sector’s strongest brand, “retaining its AAA brand strength rating despite facing significant global challenges”.

“However, according to Brand Finance research, customers are concerned about the reduced value for money amidst higher energy prices, underscoring the need for Petronas to carefully manage its pricing strategies to maintain its competitive edge and customer loyalty,” Brand Finance added in the release.

QatarEnergy was the oil and gas sector’s fastest-growing brand, according to Brand Finance, which outlined in the release that the company experienced an “82 percent brand value surge to reach $3.2 billion”.

“This growth is largely attributed to the successful integration of Qatargas into the QatarEnergy brand,” Brand Finance said in the release.

“The strategic rebranding to QatarEnergy LNG has consolidated the brand and underscored its commitment to liquified natural gas in the energy transition,” it added.

Looking at some of the emerging trends seen in Brand Finance’s 2024 oil and gas ranking, D’Souza told Rigzone that “Brand Finance research highlights that perceptions of renewable energy investment and sustainability-focused brand efforts have decreased noticeably”.

“This is because oil prices have gone down compared to last year, and the global economy is adjusting to the effects of Russian sanctions. Ultimately, oil and gas brands continue to face a tough challenge: balancing security, affordability, and sustainability,” he added.

“While perceptions of sustainability have declined and aligned with reality, the longer-term trend of the energy transition will need brands to build sustainability perceptions while also demonstrating their commitment through investment,” he continued.

“Companies with a long-term view of the energy transition have a golden opportunity to transform their brands into true energy brands where they will play a critical role in global energy trade, energy supply chain, technology adoption, and enhancing their value proposition for the downstream segments of their business,” D’Souza went on to state.

In a release posted on its site in April last year focusing on its 2023 report on the most valuable and strongest oil and gas brands, Brand Finance said Shell remained the world’s most valuable oil and gas brand “despite experiencing a three percent brand value reduction, taking its brand value to $48.2 billion”.

“This is the ninth consecutive year that the British multinational oil and gas brand has held the top spot, however, Saudi Arabian oil and gas giant, Aramco (brand value up four percent to $45.2 billion) has reduced the gap at the top,” Brand Finance added in that release.

Brand Finance’s April 2023 release highlighted that Petronas was the strongest oil and gas brand and that Qatargas was the world’s fastest growing oil and gas brand, as well as the fastest growing brand across all sectors in the Middle East in 2023.

Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries, the company notes on its website, which highlights that Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – “a brand valuation method compliant with the industry standards set in ISO 10668”.

“It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market,” Brand Finance states on its site.

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors, Brand Finance’s site notes.

“Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance,” it adds.

“The data used is derived from Brand Finance’s proprietary market research program and from publicly available sources,” it continues.

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