In other words, public integrated oil companies like Exxon Mobil (XOM), Conoco Phillips (COP), Chevron (CVX), BP, etc., own just a small piece of the total crude oil pie.
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Related, check out the below linked article from Newsweek writer, David Victor, on the current set of serious challenges facing Mexico's state-owned oil company, Pemex. In the piece, David highlights a CRITICAL issue related to the state's ownership of oil (vs. private sector ownership) - a track record + higher likelihood of oil production supply inefficiencies:
" Pemex generates two fifth's of the Mexican government's income and is a lucrative employer, but it is ailing from neglect. For years the government has milked Pemex of cash without giving it the wherewithal to invest in and develop new sources of oil...Mexico is hardly the only country that treats its state oil companies as ATMs for governments, unions, cronies and others who siphon the rich benefits for themselves. A large fraction of the world's oil patch is struggling with the problem that bedevils Calderon: how to make state-owned oil companies more effective at finding and producing oil. Veneuzuela's oil output is flagging. Russia's state-owned gas company, Gazprom, is on the edge of a steep decline in production..."
http://www.newsweek.com/id/132601/page/1
Net of the net, looks like another Fundamental reason to be BULLISH on the long term supply-constrained pricing prospects of Crude Oil.
Full Disclosure: I own shares of COP.
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