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Political instability in high-oil regions means reserves are tenuous

ExxonMobil may face increased political risks from new growth opportunities, many of which coming from politically unstable countries.

Exxon is barred from production and exploration in Iran, which holds the second-largest reserve of traditional crude in the world.

In March 2008, a British judge cancels order to freeze $12 billion in Petroleos De Venezuela SA assets. When Exxon Mobil (XOM) won a judgment to freeze $12 billion in the assets of Petroleos Venezuela SA, it was considered a major victory for the Big Oil company. Now, however, XOM is experiencing a setback in its fight against the state-controlled oil company. A British judge has canceled the order to freeze PdVSA's assets.

It was widely considered that the asset freeze was part of the reason oil prices soared to more than $100 a barrel, as Hugo Chavez, president of Venezuela, threatened to stop shipping oil to the United States. Now, however, oil prices continue to climb on their own (after a drop yesterday), despite the reversal.

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