Soft approach works in a hard land

摘要

New security techniques can turn high-risk markets into fertile ground for oil companies. Over the last few years, as the price of oil continued to climb and reached USD70 a barrel, petroleum companies began to re-evaluate world markets and their exploration/upstream strategies with a greater sense of interest and competitive urgency. Already drilling deeper wells than ever in places such as the Gulf of Mexico, the combination of high price and depletion of resources in "safer environments" has prompted more companies to reconsider areas they previously felt were too dangerous, from Iraq to Nigeria and Venezuela. Other oil-rich and potentially volatile regions across the globe have also become attractive to foreign investors, including Malaysia, Sudan, the Caucasus and more. Yet, while more companies are moving ahead, the determination of terrorists/insurgents in "hot spots" to disrupt activities remains firmly entrenched. Also, just as companies are re-evaluating their risks and markets, groups with anti-foreign sentiments in regions now seeing corporate interest are undoubtedly considering disruptive tactics that have successfully discouraged oil development elsewhere.