Sunday, September 16, 2007
The Real Oil World
Some have the mental image of an oil world ruled by the seven sisters. It is wrong - private owned companies came to play a marginal role in the oil universe of 2007. Most of the oil production and certainly most of the reserves are in the hands of state owned organizations, such as 1. Abu Dubai National Oil Company (ADNOC), 2. Kuwait Petroleum Corporation (KPC), 3. National Iran Oil Company (NIOC), 4. Saudi Arabia Aramco, and 5. Sonatrach of Algeria. The government owns at least 51% of these national oil companies. Other national oil companies: National Oil Libya, Petronas of Malaysia, Petrobras Brazil, Pertamina Indonesia, Qatar National Gas Company, Statoil Norway, Nigeria National Petroleum Corp, Petroleos De Venezuela SA(PDVSA), Pemex Mexico, China National Offshore Oil Corporation (CNOOC), and Gazprom Russia. So in fact oil market is not really a free market, it mostly international politics.