Oil Giants Struggle To Compete With New Wave Of Nationalism

A major concern is how oil giants will replace their reserves. A big reason is the new wave of nationalism. The owners of many of the world’s undeveloped fields, countries like Nigeria, Libya, Bolivia and Venezuela, are demanding a bigger piece of the pie. Meanwhile, state-owned oil companies from places such as China, India and Malaysia are bidding on reserves and projects worldwide. Nationals represent seven of the 10 largest oil producers in the world.

The top five produce more than twice the oil and gas each day of their five publicly held peers, according to industry researcher, Energy Intelligence Group. Saudi Arabia’s Saudi Aramco tops the list. The National Iranian Oil Co. and Mexico’s Pemex follow. Overall, the industry plans to spend $239 billion on exploration and production this year, up 15% from 2005, according to a Lehman Bros. survey released last month.

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