Their smaller size gives them less diversification, less geographic spread. So you have a little bit more risk with them. Those companies are about $16 billion market cap companies, whereas BP Amoco is a $200 billion company. So you can compare BP Amoco to a GE in terms of its size and diversification.
Everyone is wondering whether the increased quotas will translate into actual new production. Many members of OPEC don't have excess production capacity.
People had feared Iraq might reduce its production. That was one factor that was inflating the market.
It would see to me the downstream assets of Texaco in the United States are the major issue here. Generally speaking, the upstream generation and production company doesn't have any FTC concern.
The oil markets appears very nervous about the Iranian situation. Iran's production is essential for meeting world demand. There is not enough excess capacity within OPEC to make up for the lost supply if Iran were to stop selling oil.
The oil markets appear very nervous about the Iranian situation. Iran's production is essential for meeting world demand. There is not enough excess capacity within OPEC to make up for the lost supply if Iran were to stop selling oil.
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