Oil prospectors shifting focus back to wealthy, more predictable countries


Companies including Shell (RDS.A, RDS.B) , Chevron (NYSE:CVX) and Exxon (NYSE:XOM) are diverting more and more funds to the world’s richest economies, as they grow tired of the risks of working in violent and corrupt places for the reward of finding oil and gas reserves that can be profitably exploited, according to a WSJ analysis.

The companies are pulling out of more conflict-torn and difficult regions: CVX sold its assets in Chad this year, XOM has sold project stakes in Iraq and Indonesia, and Shell since 2010 has sold $1.8B of its Nigerian assets and last year began talks to sell four oil production blocks and a pipeline there.

Places like the U.S., Canada and the U.K. - which has opened bidding for its next set of onshore oil and gas exploration licenses - are more expensive to operate in, and regulations are tighter, but their political stability makes them more predictable.

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Comments (10)
  • peter doyle
    , contributor
    Comments (23) | Send Message
     
    Good!
    28 Jul 2014, 01:06 PM Reply Like
  • Austin Newsom
    , contributor
    Comments (136) | Send Message
     
    This E&P pullback to the US and Canada trend has more to do with the shale revolution than political stability.
    28 Jul 2014, 01:21 PM Reply Like
  • booroy2
    , contributor
    Comments (228) | Send Message
     
    Not too sure about that 6564051.
    28 Jul 2014, 01:44 PM Reply Like
  • frankpeel@gmail.com
    , contributor
    Comments (133) | Send Message
     
    Yes indeed.

     

    That's what the Wall Street Journal says in
    in a long and much more detailed story
    starting on its front page this morning.

     

    What a happy coincidence.
    28 Jul 2014, 01:21 PM Reply Like
  • Uwe Rathje
    , contributor
    Comments (4) | Send Message
     
    One is unaball to have a reliable income in area's which are corrupt .
    Uwe Rathje
    28 Jul 2014, 01:26 PM Reply Like
  • booroy2
    , contributor
    Comments (228) | Send Message
     
    Yep and that's why they're leaving.
    28 Jul 2014, 01:45 PM Reply Like
  • Notsodutch
    , contributor
    Comments (6) | Send Message
     
    You are correct Sir, where does your experience come from?
    22 Oct 2014, 03:58 PM Reply Like
  • john001
    , contributor
    Comments (1217) | Send Message
     
    lets hope Kazakhstan is on RDS's list of corrupt places not to invest in.
    28 Jul 2014, 01:50 PM Reply Like
  • xomstock
    , contributor
    Comments (471) | Send Message
     
    Funny they are finding oil just about everywhere. From what I understand COP is well positioned in the safer more predictable oil fields and maybe the others are finding thats a good position.

     

    There is no doubt that XOM will go for the oil where ever and whenever but it will be nice to lose some of the nasty corrupt plays.

     

    Peak oil is here!
    28 Jul 2014, 02:15 PM Reply Like
  • amanzechika@yahoo.com
    , contributor
    Comment (1) | Send Message
     
    It a good omen
    29 Jul 2014, 02:00 PM Reply Like
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