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Dramatic rise in NOCs' power: In the 1970s, the NOCs controlled no more than 7-8 percent of the world's oil and gas production and reserves.The pioneers of this evolution toward an overwhelming role for states in oil and gas activities interestingly have not been newly independent nations, but other industrialized or developing countries such as U.K. (British Petroleum created in 1914), Argentina (YPF, 1922), France (CFP, 1924), Italy (Agip, 1926), Mexico (Pemex, 1938), Brazil, (Petrobas, 1953), Japan (Japex, 1955) or India (ONGC, 1956), without forgetting the ex-USSR, Russia and China.What is still more remarkable than the phenomenal increase of their share in oil and gas reserves and production is the relatively rapid development of internal NOC capabilities. Over the period 2007-2012, of the 42 big discoveries with reserves larger than 500 million barrels of oil equivalent, 29 were in areas under the control of NOCs.Regarding financial performance, two key indicators are more favorable to NOCs: They are generally able to raise funds in the capital markets at more advantageous conditions than IOCs, and the six largest publicly traded NOCs have an average price/earnings ratio of 10, compared with 7 for the supermajors.Redistribution of roles and competencies: The massive shift of reserve ownership and control from big, privately owned oil companies and independents to oil producing countries and their NOCs resulted in radical changes in three main directions:
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