Big Oil is going through a major facelift; the only problem is that many people don't know about it. It is starting to look at alternative sources of fuel for profitability.
For example, Royal Dutch Shell reported a profit of $9.8 billion in 2009. Now that's a good chunk of change. But it's nothing compared to the $31.4 billion in 2008 alone.
In the long term, the success of any oil company depends on a sole principal: sustaining oil reserves. The major oil companies are fighting each other to the death as opportunities are becoming sparse.
The oil companies haven't all of a sudden jumped on the green revolution. They are fighting for survival, so if alternative fuel sources are the way to go, they'll do it. As a result, it helps everyone.
The prospect of new energy technologies can provide millions of jobs. The country that harnesses its power can sell the technology worldwide. Huge amounts of money are at stake.
Some companies are trying to expand through acquiring smaller companies, while others are pouring money into research. The best example of this is British Petroleum, which is planning to spend between $25-30 billion over the next five years on new projects.
But the power of the dollar only goes so far. Many state-owned energy rivals guard oil reserves in their home countries. Only a few of the big oil fields recently found are easily reachable and easy to drill.
New opportunities do emerge, such as Iraqi oil fields; many companies are paying huge sums for drilling rights to such fields. Many of the major oil companies can't compete in the bidding wars because nationalized companies can often pay absurd prices for drilling rights that public companies wouldn't dream of.
So as a result, companies are looking in different directions of growth. One option is to develop ways of going after oil reserves under the tar sands or deeper offshore drilling.
The other course of action is looking into other energy reserves. The French company Total has ventured into expanding nuclear power generation. Shell has announced a venture with Cosan, a Brazilian producer of ethanol from sugar cane.
Oil companies have never done this. Many companies are even looking into biofuels.
But before the rejoicing begins, be cautious. Big oil companies haven't changed. They look for profit. The world's needs are shifting to alternative fuels at the same time as oil profits are starting to dry up.
The fight over reserves has pushed Western oil giants to look elsewhere for profit. State-owned firms that make up the Organization of Petroleum Exporting Countries prop up oil prices.
The fight over oil is on.
