Big oil reservoirs are becoming harder to find and more expensive to develop.

Big oil reservoirs are becoming harder to find and more expensive to develop. Many of the oil provinces outside OPEC are mature, which means that finds are now smaller, need more costly technology to develop and fall faster from peak production.

Oil companies have also been cautious on spending since the ‘97-’98 price crash slashed their share prices and triggered a spate of mergers. They have focused on large-scale projects, which will give them good margins.

http://www.reuters.co.uk/newsPackageArticle.jhtml?type=businessNews&storyID=512247