THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY
RICE UNIVERSITY

PETRONAS: A NATIONAL OIL COMPANY WITH
AN INTERNATIONAL VISION
BY

DR. FRED R. VON DER MEHDEN
RICE UNIVERSITY
WITH

AL TRONER
ASIA PACIFIC ENERGY CONSULTING

PREPARED IN CONJUNCTION WITH AN ENERGY STUDY SPONSORED BY
THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY
AND

JAPAN PETROLEUM ENERGY CENTER
RICE UNIVERSITY – MARCH 2007

THIS PAPER WAS WRITTEN BY A RESEARCHER (OR RESEARCHERS) WHO PARTICIPATED IN
THE JOINT

BAKER INSTITUTE/JAPAN PETROLEUM ENERGY CENTER POLICY REPORT, THE

CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS.
WHEREVER FEASIBLE, THIS PAPER HAS BEEN REVIEWED BY OUTSIDE EXPERTS BEFORE
RELEASE.

HOWEVER, THE RESEARCH AND THE VIEWS EXPRESSED WITHIN ARE THOSE OF

THE INDIVIDUAL RESEARCHER(S) AND DO NOT NECESSARILY REPRESENT THE VIEWS OF
THE JAMES

A. BAKER III INSTITUTE FOR PUBLIC POLICY NOR THOSE OF THE JAPAN

PETROLEUM ENERGY CENTER.

© 2007 BY THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY OF RICE UNIVERSITY

THIS MATERIAL MAY BE QUOTED OR REPRODUCED WITHOUT PRIOR PERMISSION,
PROVIDED APPROPRIATE CREDIT IS GIVEN TO THE AUTHOR AND
THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY

ABOUT THE POLICY REPORT
THE CHANGING ROLE OF NATIONAL OIL COMPANIES
IN INTERNATIONAL ENERGY MARKETS
Of world proven oil reserves of 1,148 billion barrels, approximately 77% of these resources are under the control of national oil companies (NOCs) with no equity participation by foreign, international oil companies. The Western international oil companies now control less than 10% of the world’s oil and gas resource base. In terms of current world oil production, NOCs also dominate. Of the top 20 oil producing companies in the world, 14 are NOCs or newly privatized
NOCs. However, many of the Western major oil companies continue to achieve a dramatically higher return on capital