western oil

The major Western oil companies are finding it harder than ever to find new prospects even though they are awash in profits and eager to expand.

"This dynamic will persist for all of 2008."

The chief executive of Eni SpA said Sunday that the share of profits taken by governments of oil-rich countries is cutting international oil companies' profits, in some cases below their capital costs.

'The average government take is now moving to overcome the critical barrier of 90 percent, which means that oil companies' profitability is decreasing,' Paolo Scaroni, the CEO of Italy's largest oil and gas company by revenue, said in a speech at the International Energy Forum.