Nation's Financial Health Key in National Oil Company Behavior

Going forward, the sustainability of state finances will be the primary driver of national oil company (NOC) behavior, a panelist said this week at the Association of International Petroleum Negotiators (AIPN) International Petroleum Summit in Houston. The NOC either will get dragged down into a state’s fiscal crisis, or if the state has financial cushion, the NOC can be given space to retain people and capability. In the current market, NOCs have become extensions of their governments, and investments are made based on their government’s political views, said Nikos Tsafos president and chief analyst of data firm Enalytica, during a panel discussion at the AIPN International Petroleum Summit on how low oil prices have changed the investment strategy of the global oil and gas industry, and what role host government and NOCs are playing in these investments. Panel participants also explored how the role of NOCs has changed in the past 10 years. - See more at: http://www.rigzone.com/news/article.asp?hpf=1&a_id=144444&utm_source=GLOBAL_ENG&utm_medium=SM_TW&utm_campaign=ARTICLE#sthash.nsYf2Kuw.3PJu7BtD.dpuf