Oil majors fail to replace reserves

EVENT: Crude oil hit a record $119.90 (U.S.) dollars per barrel, as Saudi Arabia warned of


ANALYSIS: Reduced oil stocks provide a smaller buffer against short-term supply shocks, increasing price volatility. Saudi Arabian Oil Minister Ali Naimi yesterday said that lack of spare oil production capacity globally threatened energy security and ever-higher prices. International oil companies (IOCs) are naturally keen to replace oil and natural gas liquids reserves. They can do so through: acquisition