The prospect of peak oil demand is a threat to oil companies around the world, but a much more serious threat to national oil companies, who are responsible for keeping their countries afloat. With the future uncertain, state-owned companies that move into downstream assets overseas could insulate themselves from market upheaval, according to a report from Wood Mackenzie. National oil companies (NOCs) are not immune to the whims of the oil market, even if they have low production costs relative to their private competitors in shale or offshore. If oil demand hits a peak and begins to decline, high cost producers will be forced out of the market. But even the NOCs will be exposed to weakening oil demand in much of the world. Wood Mackenzie argues that NOCs can mitigate some of that risk if they invest in refineries outside of their home countries, which “will increase a […]