The Major Oil Companies in the 1970s and 1980s

The fundamental change in the international oil supply conditions1 reverberated all through the industry. The dominant position of the large international companies, at least in crude oil reserves, supply and trade, was successfully challenged by the state oil companies of the oil producing countries. The former ceased to be the major producers of oil, at least in the short and mid term. The major oil companies’ interest in crude oil production in the Middle East dropped sharply after 1973, when the host governments nationalized or achieved majority paricipation in crude oil production (See Figure 6.1). After 1980, the companies’ equity crude interests diminished further, and their remaining holdings in OPEC countries were in sharp contrast to ten years earlier.