Oil Nationalism Seen Reversing as Shale Rattles Producers

The wave of resource nationalism among oil-producing nations that helped propel prices to a record in 2008 is dissipating as competition from U.S. shale stirs governments to offer better terms, the IEA said.

Sliding crude prices in the face of supply threats in Iraq and Libya reflect that industry concerns of scarcity have been replaced with a perception of sufficiency, said Antoine Halff, head of the Paris-based International Energy Agency’s industry and markets division. Producing countries such as Russia and Argentina who sought greater control of resources from international oil companies in the last decade are now changing tack to entice foreign partners, he said.