Chasing reserves Incentives and ownership

The oil companies are concerned to replace the petroleum reserves they producein order to maintain their future level of activity. Booked reserves alsorepresent an important input when analysts value these companies. Many producercountries want to control their own resources, a goal which can come into conflictwith the desire of the international companies for booked reserves. Where oilcompanies do not own the reserves, they may have insufficient incentives to maximisevalue harmonising goals between resource country and oil company canbe difficult...