October 24, 2007 14:21 ET

PFC Energy Sees Rise of "Paper Tigers"

WASHINGTON, DC--(Marketwire - October 24, 2007) - Key competitor analysis by PFC Energy indicates that financial markets have an increasing appetite for stocks that combine the value of hydrocarbon reserves with strong growth prospects. This trend particularly benefits National Oil Companies (NOCs), which have preferential access to oil and gas reserves. While this year's 50% increase in oil prices has been accompanied by an 18% increase in the market capitalization of ExxonMobil, the world's largest publicly traded energy company, the valuation of PetroChina has almost doubled. On October 17, the New York market valued PetroChina only 10% below ExxonMobil's $526 billion capitalization. While PetroChina's valuation is volatile and much of its increase can be attributed to speculation on convergence between Hong Kong and mainland China stock markets, it also reflects excitement about a company that combines natural resource values with growing markets and access to reserves. Other "Paper Tigers" benefiting from this trend include China National Offshore Oil Corporation (CNOOC), Sinopec, and Petrobras.

"PetroChina's valuation may be high on a revenue or production basis compared with the international majors, but it indicates how much growth potential people see in the most aggressive NOCs," commented PFC Energy's CEO, Lew Watts. "Clearly the rise of the Chinese national oil companies is a significant event in our industry."

PFC Energy, headquartered in Washington, DC, is a leading strategic advisory firm in global energy with main offices in Houston, Kuala Lumpur, Paris, Bahrain, Lausanne, and Buenos Aires. PFC Energy's clients include all major international oil and gas companies, many national oil companies, oilfield service companies, financial institutions and government agencies and ministries involved in energy policy and energy-driven economic development. Specializing in competitor analysis, energy sector strategies, commercial opportunities, and geopolitical forces affecting energy policy and energy economics, PFC Energy provides insightful and actionable solutions to energy-sector challenges.

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    Erika Smakula
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    PFC Energy in Washington DC

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