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Western companies win new deal offers from oil nations, but will they come?

  • Mexico, Iran and other countries that once played hardball with big oil companies are now rolling out the welcome mat, offering generous deals in the hope they will bring capital to stimulate output.
  • But it isn't certain the big oil firms will want to return to all those countries, as the economics of the oil business may be changing to favor different kinds of exploration projects elsewhere in the world, WSJ reports.
  • The biggest shake-up is coming in Mexico, where production has been falling steadily while rising electricity demand has forced dependency on imported natural gas and sent prices soaring; Total (TOT), Chesapeake (CHK) and Chevron (CVX) have expressed interest in entering the country.
  • Iran is considering big changes to its current stringent oil terms, but some analysts say "it will be a slow process to get Western oil companies back to Iran... Iran's reservoirs are prolific, but they are also complex and in poor shape."
  • Also, he Ukraine crisis has reinforced the trend in thinking about geopolitical risk as being a big factor.
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Comments (7)
  • Freudo1
    , contributor
    Comments (36) | Send Message
     
    Brazil is problematic because of its social and political instability. A safer bet would be Angola.
    19 May, 07:48 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    Seriously?
    20 May, 03:20 AM Reply Like
  • westelk
    , contributor
    Comments (230) | Send Message
     
    What do Wall Street and O&G companies have in common? The constant refrain: "This time is different". One gets nailed by business cycles and the other by nationalization both of which are caused in large part by meddling politicians.
    19 May, 08:55 PM Reply Like
  • mathari
    , contributor
    Comments (169) | Send Message
     
    A glut of oil. Price is going down even more. It's a buyer's market which means XOM, BP, CVX are gonna start raking in the cash again.
    19 May, 11:55 PM Reply Like
  • joeduck
    , contributor
    Comments (15) | Send Message
     
    Hope these companies tell Mexico to stick it. Short memories of the Nationalization of American holdings into PEMEX.
    20 May, 12:35 AM Reply Like
  • Gary Jakacky
    , contributor
    Comments (2393) | Send Message
     
    Now that we have our own domestic alternatives, we can tell these born again socialist private property confiscating ratholes to take a hike.
    20 May, 08:52 AM Reply Like
  • User 353732
    , contributor
    Comments (4785) | Send Message
     
    The success of the independent E&P entrepreneurs in North America has decisively changed the geo politics and geo strategy of the global oil and gas industries.
    If the large independents, mini majors and majors are finding new leverage in their conversations with formerly very hostile Regimes , it is because of the vision, tenacity and ingenuity of small and medium North American E&P companies.

     

    Quite likely it will be Chinese, Russian and Indian oil and gas companies that will venture into places such as Iran because they face far less risk of expropriation than Western companies, while the latter seek opportunities in Mexico, East and West Africa, the Mediterranean basin and parts of Asia-Pacific.
    20 May, 04:55 PM Reply Like
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