Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6954505788342120448
#LNG #Oil #Price #Supply #Demand #Finance #Market As much as 65% of world’s discovered #oil and #gas reserves are under control of #national #oil #companies (NOCs). Most of the already discovered oil and gas in the world, two-thirds of it, is under the #control of just seven companies, of which four are subject to #sanctions from some of the world’s biggest oil and gas #consumers. https://lnkd.in/gTvFNR-m .
#ControlDoctrine
Big Oil majors in the USA have found themselves the target of much pressure to boost #production lately, as #prices go wild amid a tight—and tightening—market. At the same time, the U.S., as well as the EU, have been looking all over the world for more #supply. According to new research from the energy consultancy, more than half—65%, to be precise—of the world’s discovered oil and gas reserves are under the control of NOCs. In addition to NOCs like #Saudi aramco, QatarEnergy, and #AbuDhabi’s ADNOC Group, these companies include #Russia’s Rosneft and Gazprom, the National Iranian Oil Company, and #Venezuela’s PDVSA Petróleos de Venezuela S.A. These seven companies can keep producing oil and gas at their current rates for the next 40 to 60 years or even longer if they tap their spare capacity.
It was NOCs that have made 41% of all new oil and gas discoveries in conventional resources since 2011. NOCs’ share in new discoveries has been on the increase since 2018 as the #energy #transition push prompts the evolution of their #exploration #strategies. In total, NOCs have discovered more than 100 #billion #barrels of oil equivalent since 2011 which was twice what oil majors discovered. Unlike the majors, NOCs were significantly worse at commercializing these new discoveries. Two-thirds of what #BigOil has discovered since 2011 is considered viable and advantaged. On the other hand, two-thirds of what NOCs have discovered is considered contingent. This could, of course, change with the #right #incentive. Right now, however, it seems that the NOCs, especially in the #MiddleEast, don’t have much of an #incentive, especially as #prices begin sliding under the weight of #recession fears.
The governments of #Europe and the #USA, two of the biggest #consumers of oil and gas globally, believe that this refocusing on #energy #security will only be a short-term matter. Oil and gas will be necessary only for a few more years, their reasoning goes, until we build enough #wind parks and #solar farms. #Coal, too. The fact that European buyers are signing long-term contracts for U.S. #LNG, however, suggests something else. It suggests an acknowledgment that oil and gas might very well continue to be necessary for not years but decades to come. And there are just seven companies that can keep supplying that oil and that gas for decades to come… The future, then, belongs to national oil companies.
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