BP plc (ADR) (BP): Is the Sun Setting on Middle East Oil Production?

For the integrated majors, it is harder to tell if this region will be as lucrative for them. Since most of the countries in the region produce oil through their respective national oil companies, companies like Exxon and BP plc (ADR) (NYSE:BP) receive technical service agreements just like oil services companies rather than a share of production. The question is, will a heavier reliance on processes like EOR lead to more lucrative service contracts for these big players?

What a Fool believes
According to the U.S. Geological Survey, there are an estimated 500 billion barrels of oil yet to be discovered, which is on top of the 1.6 trillion that we have today. So while there is still an abundant supply of oil remaining, it is nonetheless a finite supply and the price of extraction will continue to climb as we need to drill deeper and deploy new innovative techniques.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool recommends Total SA (ADR).

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