Just last year, the world’s biggest international oil companies were having a tough time accessing new resources in oil-rich countries. The prices of oil and natural gas were high, and the oil-rich countries felt they had learned enough over the years to manage their own oil and gas resources and hire the smaller oil services companies to plug in gaps where needed. The majors, it seemed, were were losing their foothold. But with lower crude prices taking a toll, they believe the balance is shifting back in their favour.
Dave O’Reilly, Chevron’s chief executive, told analysts yesterday that such countries are back looking for investments from the majors. They need the technological and project management expertise of the majors to keep costs down, maintain production and fund their economies. “This is a time they need companies like ours more than ever,” Mr O’Reilly said.
ExxonMobil agrees. Rex Tillerson, Exxon’s chief executive, told analysts at his annual analyst meeting last week that the Russians, for one, did not see the plunge in prices coming. Since then Russia has of course reached out to China for a large loan, and as Carola wrote last week, there are signs that other oil-producing countries, particularly Iraq, are also more willing to make terms more favourable for international oil companies in exchange for their investment and expertise.
