Mentions of cybersecurity within the filings of companies in the oil and gas industry were 38% higher in the third quarter of 2021 than in Q3 of 2020.
In total, the frequency of sentences related to cybersecurity between October 2020 and September 2021 was 114% higher than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings.
When companies in the oil and gas industry publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Cybersecurity is one of these topics – companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.
To assess whether cybersecurity is featuring more in the summaries and strategies of companies in the oil and gas industry, two measures were calculated. Firstly, we looked at the percentage of companies that have mentioned cybersecurity at least once in filings during the past twelve months – this was 90% compared to 77% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to cybersecurity.
Of the 50 biggest employers in the oil and gas industry, Baker Hughes Co was the company that referred to cybersecurity the most between October 2020 and September 2021. GlobalData identified 36 cybersecurity-related sentences in the US-based company's filings – 0.6% of all sentences. MOL Hungarian Oil and Gas PLC mentioned cybersecurity the second most – the issue was referred to in 0.5% of sentences in the company's filings. Other top employers with high cybersecurity mentions included Honeywell International Inc, Keppel Corp Ltd, and TechnipFMC Plc.
Across all companies in the oil and gas industry, the filing published in the third quarter of 2021 that exhibited the greatest focus on cybersecurity came from SK Inc. Of the document's 1,263 sentences, 10 (0.8%) referred to cybersecurity.
This analysis provides an approximate indication of which companies are focusing on cybersecurity and how important the issue is considered within the oil and gas industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning cybersecurity more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into cybersecurity have been successes or failures.
GlobalData also categorises cybersecurity mentions by a series of subthemes. Of these subthemes, the most commonly referred to topic in the third quarter of 2021 was "data security", which made up 79% of all cybersecurity subtheme mentions by companies in the oil and gas industry.