The Petroleum Industry has historically suffered from cyclical oil prices that have created both risks and opportunities for investors. The fall which began in 1997 was severe and didn’t reverse course until half a decade later. With the acceleration of the Chinese economy which has seen China attempt to obtain every oil source available, the world demand for oil has driven market prices to new records in a global market.

There are strong reasons for oil companies to expand global access to substantially larger reserve potential at comparable risk versus the United States and Canada. Additionally, the capital investment for international projects can be tailored to meet the level of financial exposure that may be available. Multiple means of meeting targeted financial exposure are available and include joint ventures with local companies, leveraged farmouts and smaller portfolio interest with larger and established operators in a particular basin or exploration trend. A successful international exploration and production effort would differentiate a company from its peers in the market and could lead to enhanced stock appreciation or improve the market acceptance of a future IPO. Alternatively, the international component to the international portfolio could open new sources of funding, including access to foreign investment in the existing portfolio.