by Keith_McClary » Fri 22 Apr 2005, 02:49:33
$this->bbcode_second_pass_quote('joesmoe', ' ')With oil companies, you need to pool larger and larger resources to get investment capital for mega projects
Large oil companies are only interested in mega projects - they are not very good at smaller plays.
They aren't finding many mega prospects lately. I think they will give up investing in exploration and distribute their earnings to shareholders instead.
$this->bbcode_second_pass_quote('joesmoe', 'Y')ou could argue that small businesses have advantages in some sectors (that are fast changing, dynamic, etc...). For example the internet. But the thing is, its like nature, where after some initial changes, perhaps disruptive to the environment, where several niche players form, after things settle down, there usually arise a dominant species, or multiple few species that become the top of the food chain. Just like these corporations which become monopolies and oligarchies. Small businesses may stake a claim at first in new emerging areas, but then they start consolidating, and evolve into a large, or a few large companies because they are able to create a large enough competitive advantage to eliminate all the small fry.
In other words, when things get tough, (and not including any hard crash scenario where everything breaks down too fast), I see that global corporations and / or gov'ts will become the primary forces in the future.
In nature when there is a drastic environmental change (meteor impact, eg.) it is the critters at the top of the food chain that become extinct, opening up environmental niches for the small fry.