444 By Susan Ariel Aaronson and David Deese With a reaction by ...

A wide range of public and private and national and international actorscollaborate to provide the world with energy. As they drill, these actors must also protectthe physical flow of oil or natural gas from the producing field to the consumer. Friendlyand hostile governments as well as business competitors must work together. Suchcollaboration is threatened by a wide range of political and market factors including pricevolatility.The big five international oil companies sit in the middle of this quest to balanceenergy and security. They must find ways to profit between energy exporting states keento maximize prices and limit supply, and importing countries determined to maximizesupply and limit price volatility. The International Energy Agency has estimated that todevelop and deliver energy to the world’s people will require massive newinvestments.153 Current supplies are not meeting the increases in demand. Thus,responsible stakeholders would invest heavily not only in new oil fields, but in energyefficiency and alternative energy sources as well.But the big five energy companies have generally cut spending levels in realterms over the past 10 years and reinvested in their own stock.154 Moreover, the hugemergers in the industry have not channeled the resulting lower costs toward explorationefficiencies. As a result, Baker Institute scholars Amy Myers Jaffe and Ronald Soligoconclude that these firms are unable to respond flexibly to market conditions.155 Whilebuying back stock may well be in the short-term interest of shareholders, it is not in thelong term interest of energy consumers—i.e. global stakeholders. These firms have notacted as responsible stakeholders in regards to ensuring long-term energy security.Moreover, they are not even acting responsibly towards their shareholders. According to450