WP: National Oil Firms Take Bigger Role(challenge international companies)

[DeepModem Mom]

National Oil Firms Take Bigger Role
Governments Hold Most of World's Reserves

By Justin Blum
Washington Post Staff Writer
Wednesday, August 3, 2005; Page D01


As the world's thirst for oil increases, government-controlled national oil companies are challenging international firms such as Royal Dutch Shell PLC and Chevron Corp. in the global competition for oil reserves.

National oil companies are increasingly venturing beyond their home country's borders in search of reserves. The governments' motives are varied, but in cases such as China and India, they are seeking more secure oil supplies to meet the needs of their fast-growing economies....

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About 77 percent of the world's 1.1 trillion barrels in proven oil reserves is controlled by governments that significantly restrict access to international companies, according to PFC Energy, an industry consulting firm in Washington.

Much of those reserves are in the hands of countries belonging to the Organization of the Petroleum Exporting Countries, the cartel that attempts to influence world oil prices by regulating supply. The country with the world's largest reserves is Saudi Arabia, which has its own national oil company, Saudi Aramco, and does not allow foreign companies to pump oil.

Several years ago, when oil prices and demand were lower, international oil companies had the upper hand when negotiating with governments controlling access to reserves, analysts said. But with global oil demand now soaring and prices surpassing $60 a barrel, countries holding vast reserves have gained a stronger negotiating position with international oil companies that want to operate in their territory....


http://www.washingtonpost.com/wp-dyn/content/article/2005/08/02/AR2005080201978.html