Could Asian Oil Firms’ Demand Be Overstated?

Schlumberger – Asian oil-and-gas companies are acquiring overseas assets at a slower pace than is widely assumed and may pose less of a threat to Western energy needs than many believe, according to a new report.

The report, written by consultancy Wood Mackenzie and recently distributed to its clients, says Asian oil companies such as Cnooc Ltd., of China, have spent far less on acquisitions in recent years than a group of Western counterparts of similar size. The study also concludes that Asian oil companies tend to get reasonable rates of return on their acquisitions, undercutting the view that they will pay any price to secure more oil and gas, driving up the price for everyone.
Schlumberger