Article at a glance:

What's next for Big Oil?

The petroleum industry's prosperity masks a growing uncertainty about the long-term ability of big international oil companies to replenish their energy reserves. They have limited access to the Middle East, which holds half of the world’s known oil and natural-gas reserves, and potential new sources—such as those located in extremely deep water or the Arctic—are difficult and expensive to extract. Big Oil has let its technological leadership lapse over the past decade or so, and it faces increased competition from national oil companies and increasingly global midsize players.

The take-away

To be more attractive as partners to the national governments controlling oil and natural-gas reserves, major international oil companies need to build capabilities that give them a clear advantage over their rivals.