A new role for NOCs
To cope with an era of lower oil prices, state-owned firms must put value above volume and focus less on production, more on their commercial position
National oil companies (NOCs) are under tremendous pressure to transform. These companies were originally set up to maximise the realisation of their country's hydrocarbon resources and fund their government's budgets through taxes and dividends. Many NOCs have also been called on to be major employers and contribute to social-welfare programs. Changing circumstances have required all NOCs, including net importers, to refocus on capital allocation and costs. Now, due to the steep decline in oil prices by more than 60% from their peak, NOCs are struggling to remain profitable and continue fulfilling their commitment to their governments. As a result, governments that depend on oil and gas for
Also in this section
5 March 2025
The oil alliance’s decision to keep to the plan amid tightening economic fundamentals seems to have been lost in the global geopolitical maelstrom, misplaced market speculation and haze of conjecture
5 March 2025
Petronas is making huge efforts to arrest falling oil production and accelerate gas increases to meet rising demand, but political tensions persist
5 March 2025
Plans to boost capacity have seen little progress as the country lags behind other major oil consumers and importers
4 March 2025
The US and Canada are boosting capacity builds for renewable diesel and biofuels, while Central and South American countries are investing heavily to upgrade and expand their domestic refining sectors
