New oil colossus emerges
From Oligopoly Watch ( an amazing new, exhaustively researched and informative blog) –
“A merger between Russian oil companies Yukos and Sibneft will have major impact on the oil industry. While you (like me) may never have heard of these companies, they control a major part of the immense oil and natural gas reserves in Russia. The combined companies now pump over 2 million barrels of oil a day, on a par with what Kuwait produces.
The merger would immediately make the new company #6 among world oil firms. The top five are familiar names, though combined as a result of recent mergers:
- ExxonMobil
- Royal Dutch/Shell
- BP
- ChevronTexaco
- TotalFinaElf
This oil industry is in the throes of a five -year consolidation, going from a dozen major firms a few years ago to a half-dozen now, and that roll up looks likely to accelerate. Bigger companies have more control over their destinies, influencing governments and markets with a loud voice. Now a Russian company can push its weight around, too.”