ExxonMobil’s strategy in emerging markets:
"I also think that the way they win these deals in a place like Chad or Papua New Guinea or Angola is, in effect, they go to the host country and say: “Look, we recognize that you can deal with the Chinese, and you’ll get soft loans and guns and things that you think are more valuable than what we can offer you, but what you’ll also get is really lousy project management. You’ll get less oil pumped, you’ll get less royalties, you’ll get less taxes, so you’ll end up net poorer. Why not come work with us under our rule of law, under a really straightforward contract? And what our record shows is that you’ll end up with more cash faster — and then you can use that cash to buy whatever guns you want? But you’ll have the money to carry out what ever plans you have; and we’re reliable, we’ll come in on time.”
It’s sort of like if you’re buying a new appliance, and you’re going to the store and somebody offers you rebates and a free toaster and three other things to incentivize you to buy one brand. Well, you look at that brand and you think oh, that thing’s going to break down in a few years. Whereas the other one, it’s more expensive, but it’s top of the line. And that’s kind of ExxonMobil’s argument."