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NOCs, IOCs need to find new partnership models

Oil & Gas Journal

Uchenna Izundu
International Editor

LONDON, Feb. 18 -- National oil companies are delivering higher levels of growth in market capitalization compared with international oil companies, and new models of collaboration are necessary to deliver secure and sustainable energy supplies to the global market, speakers told delegates at International Petroleum Week in London.

In 2007 NOCs held 65% of the world's reserves, offering limited equity access, according to Robin West, chairman of consultancy PFC Energy. Full IOC access to reserves was 7%. "It's their oil," West said, "and this is the new reality."

By 2030, global energy demand is expected to increase by 40% compared with 2008—driven mainly by economic growth and population increases in developing countries, according to ExxonMobil Corp. figures. The growth of the transportation sector will account for the rise over the next 2 decades, with oil remaining a crucial part of the energy mix.