scott146

Oil and Gas Drilling: The Price is Right But The Industry's in Trouble

A logical explanation for lack of investment in exploration by oil majors lies in the idea that 80% of the world is controlled by state oil companies and is, therefore, unavailable for competitive investment and drilling. Since future oil finds are likely to be controlled by state companies, oil majors could reasonably either return capital to shareholders through dividends, or alternatively focusing on refining; purchasing crude at market prices and relying on the crack spread for profits.