Who will develop tomorrow’s new oil supplies? And how fast? With the world emerging from an economic recession, global petroleum demand is once again rising. At the same time competition is increasing among oil companies as a growing a number of new entrants, including both NOCs (national oil companies) and INOCs (international national oil companies) come on to the scene. The rising impact of these new companies and increasing confidence among “host” nations are changing the political and financial calculus of oil investment worldwide. What are the reasons for the growing role of INOCs and European IOCs, as compared to U.S. companies? What does this mean for the United States and the competitiveness of US-based IOCs as they seek to compete in a rapidly changing global landscape.
On September 27, the Energy Security Initiative at Brookings hosted a discussion on the changing dynamics of the international oil industry. The event follows on the recent release of Fiscal Fitness, a report from IHS CERA on competitiveness in the oil sector and addressed the new power dynamics between IOCs and NOCs, the merits of the proposed changes to domestic taxation, and the impact of both on U.S. energy security.
William Antholis, Brookings Managing Director, and Daniel Yergin, Chairman of IHS Cambridge Energy Research Associates moderated the discussion.