NEW YORK, Feb. 26 (UPI) -- The financial outlook for the world's biggest oil companies remain uncertain, Standard & Poor's cautioned Monday.
The New York credit rating agency said that while Big Oil has raked in record profits over the past few years amid soaring energy prices, companies needed to be concerned about the replenishment of oil reserves.
Major companies "face changing economic and political climates in many of the countries in which they operate, which could increase difficulties in accessing new exploration and production resources," especially in tapping into resources in political unstable countries such as Syria, Iran, and Sudan, S&P said.
"A new wave of resource nationalism, which has been on the rise over the past several years, is forcing oil companies to deal with changes in royalty contracts and income taxation," said oil analyst Tina Vital.
"This change has also given rise to increased competition as more countries are investing in and growing their national oil companies to gain a larger share of the energy market and serve their burgeoning energy needs. As a result, we believe that (international oil companies) will need to exploit their core competencies, size and technology by moving into frontier regions and new markets, unconventional oil and gas plays, and innovative deal making in order to keep pace," she said.
