Russia's government-owned oil company Rosneft says US sanctions imposed on Russia will only hurt the US and other Western investors. Rosneft says that the US sanctions are 'illegitimate and groundless.'
The downing of a Malaysia Airlines jetliner last week is further straining relations between Russia and the West over Ukraine. That could spell trouble for several major oil companies operating in Russia.
The world has 53.3 years left to find an alternative to oil before current proved reserves run dry, according to BP. Of course, nations are finding new oil – meaning that number is rising – but new extraction methods are costly and can pose environmental threats.
Saudi Arabia, Russia, and the United States were the top oil producers in 2013, according to BP's latest report. At the same time, the US was also the biggest consumer of oil in the world, with China as the second-biggest oil consumer.
Oil companies ExxonMobil and BP defy the United States by collaborating with Russia in the energy sector. ExxonMobil and BP have separately signed agreements with Rosneft, Russia's state-owned oil company.
The standoff between Russia and the West will likely take twists and turns for some time in the future. Investors in energy may need to brace themselves for a bumpy ride.
Oil supermajor BP took its first step Wednesday toward returning to offshore oil drilling in the Gulf of Mexico after a drilling moratorium put in place following the 2010 BP Gulf of Mexico oil spill. Four years after that tragedy, officials say the region is still a centerpiece of the US energy portfolio.