Oil Industry Mergers, Market Power and Fuel Prices
November 7, 2008 by admin
This report and synopsis was developed by API.
The Facts About Oil Industry Mergers, Market Power and Fuel Prices: An API Primer
The oil and natural gas industry recognizes the concerns across the country over the higher energy costs American consumers and businesses have been facing this year. It is also aware of the assertion that the consolidation that has occurred in the industry over the last decade has led to higher energy prices. This primer attempts to address those concerns and offers the proper context in which to view both energy prices and company mergers.
It is important to understand how the energy world has changed. Forty years ago, the world oil reserves were largely the domain of the investor-owned, international oil companies (IOC), based principally in the United States. Most people today assume international oil companies are little changes from decades ago, still siting astride the bulk of these world oil reserves. That is no longer the case. Today, world oil reserves are 80 percent owned by the national oil companies of foreign governments, many formed during the past 30 years. Only six percent of worldwide oil reserves are now held by investor-owned oil companies.
Download the primer (pdf).
