Jim Letourneau's Blog

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State Control of Oil Reserves

Major international oil companies are not having much impact on the global oil picture. They appear to be resigned to this fact given how they are allocating their capital.

The Big Five (ExxonMobil, Royal Dutch Shell, BP, Chevron and
ConocoPhillips), used 56 percent of their increasing cash flow on share
repurchases and dividends, which were good for investors in the short
term but put at risk the companies long-term oil reserves.

State-owned monopolies, known as national oil companies (NOC),
represent the top 10 oil reserve holders internationally. By
comparison, ExxonMobil, BP, Chevron and Royal Dutch Shell are ranked
14th, 17th, 19th and 25th, respectively.

"Big Five" Oil Companies Limit Exploration