Revenge of the IOCs

With little experience in dealing with the cruel and abrupt swing of commodity prices, the once arrogant and illicit petrostates, Russia and Venezuela, are quietly creeping back to the international oil companies (IOCs) hat in hand, asking for some capital.  But what will the Exxons and the Chevrons of the world do this time to make sure they don’t just have everything stolen from them again?  (artwork from an earlier Josh Kurlantzic piece published in Mother Jones)

From the Financial Times:

Dave O’Reilly, chief executive of Chevron, said the oil-rich countries that erected barriers to international oil companies amid the run-up in commodity prices were now seeking their expertise in managing the drastic fall.

“They’re back now looking for [our] investment,” Mr O’Reilly told Chevron’s annual analysts’ meeting. (…)

The oil-rich nations now require the expertise of the international oil companies to get costs down and grow production to maintain their economies. “This is a time they need companies like ours more than ever,” Mr O’Reilly said. “That threat [to further nationalise] has receded quite a bit.”

Rex Tillerson, Exxon’s chief executive,agreed, noting Exxon had been around for more than 100 years and hadvast experience with the rise and fall in commodity prices.

Thejury was still out, he said, on how the Russians would handle it: “Theydid not see this coming; they are dealing with it in real time.”

He said Exxon was still embroiled in arbitration negotiations with Venezuela over the expropriation of its assets there.