More cooperation likely in oil industry

The long term challenge to access and develop new oil reserves is likely to foster greater cooperation between the international majors and some national oil companies, says a report on the sector by Moody's Investors Service, a credit ratings agency.

The report also states that many parts of the Middle East remain heavily under-explored, providing large upside for new oil & gas discoveries. Some countries face declining production, less as a result of lack of reserves, but more due to the growing challenges of bringing yet untapped reserves on stream.

According to Moody's, while some national oil companies, such as Qatar Petroleum, have already developed long-standing partnerships with international peers, others remain more isolated. At the