National Oil Companies ("NOCs")

While NOCs are similar to supermajors in terms of their oil production, they differ in almost every other category. As state enterprises, they have to respond to governments rather than the financial markets. The allocation of resources between reinvestment and dividends paid to government is most often guided by political imperatives rather than long-term operational capabilities and financial health of the company.

Because of their importance as major sources of tax revenue, foreign exchange, and employment, not to mention their role as symbols of national sovereignty, NOCs have maintained (as much out of obligation as choice) a "government driven" strategy. Therefore, these companies often act in the interest of the broader country economy, not their own financial health.