GLOBAL RESOURCES ANALYSIS


EFFECTS | CORPORATE REDISTRIBUTION


The rising prices of energy and elements not only will change (re distribute to other positions) the wealth of nations, but also change the field of big market players. The former oil majors are good examples: In the '70ties they controlled 70% of the worlds proven reserves, today only 10%. All producing nations has formed their own oil majors and after that re-open the (already closed) contracts concerning ownership balances or (like Canada has done) by additional (more profit with the government sharing) taxes. Resources wealth stays more and more within the producing countries. A development that's still further growing and is caused by the market polarity change of demand that outstrips supply more and more. Exporting the resources is not their concern (buyers enough), exporting the wealth to be made on these resources is something or the past. New giants are born (also due the increasing home markets) and they are very big very soon after birth. For example: PetroChina has her IPO in 2007 and was very soon after the IPO the most valuable company of the world in terms of exchange stock value (above $ 1.000.000.000.000, double of the Exxon Mobil $ 500.000.000.000). The western oil majors their market share declines every year, not only by the grow of the market watering, but also by their own volume declining.


Author: Gijs Graafland


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