Goldman's Michele Della Vigna: Since the start of this oil price cycle in 2000, peak oil theories have become increasingly popular, due to lack of credible new sources of crude oil. Over the past five years, however, the industry has opened up two new credible sources of future supply: the ultra-deepwater and the “oil shales”. We believe that these new sources of oil will be comparable in scale to the opening up of the North Sea and Mexico in the 1970s and will lead to a meaningful reduction in oil prices, alongside a change in the balance of power of the oil and gas industry. This is why we call it a revolution. However, the technical complexity of these developments and the tightness of the oil services supply chain are likely to delay the impact of these new projects by several years, sustaining a tight oil market.
Edwards Says Cnooc’s Nexen Bid Will Probably Be Approved
Cnooc Ltd. (883)’s $15.1 billion bid for Calgary-based Nexen Inc. (NXY) will probably be approved by the Canadian government, Canadian Natural Resources Ltd. (CNQ) Chairman N. Murray Edwards said.
Speaking at a conference in Ottawa, Edwards said Cnooc will have to decide if any conditions that the Canadian government may place on the deal would be acceptable.
Mitt Romney’s trust invested in Cnooc at a time when the US was growing concerned about the Chinese oil company’s multibillion-dollar dealings with Tehran, according to the 2011 tax return released by the Republican nominee for president.
Companies That Want To Do Business With China Are Facing This Frustrating Hurdle
State-owned Chinese oil company CNOOC is trying to merge with Calgary-based Nexen, and it's facing political hurdles in both Canada and the United States.
Nearly seven out of ten Canadians opposed the deal in a recent poll, adding pressure for the government to reject it.