A new role for NOCs
To cope with an era of lower oil prices, state-owned firms must put value above volume and focus less on production, more on their commercial position
National oil companies (NOCs) are under tremendous pressure to transform. These companies were originally set up to maximise the realisation of their country's hydrocarbon resources and fund their government's budgets through taxes and dividends. Many NOCs have also been called on to be major employers and contribute to social-welfare programs. Changing circumstances have required all NOCs, including net importers, to refocus on capital allocation and costs. Now, due to the steep decline in oil prices by more than 60% from their peak, NOCs are struggling to remain profitable and continue fulfilling their commitment to their governments. As a result, governments that depend on oil and gas for
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
