Why Do Energy Companies Form Joint Ventures?

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From The Motley Fool:
A joint venture, as you know, is a business agreement between two parties to develop a new entity whereby each party contributes assets. Those assets could be cash, equity, operating assets or intellectual property. The key is that the companies see greater value in combining the assets than in operating them separately.
The energy industry is the king of joint ventures. There are two driving forces behind this phenomenon. First, energy exploration and production is very, very expensive. Many smaller firms simply cannot afford to develop the resources they’ve discovered. Energy exploration is also a very risky business. Joint ventures are great for spreading around that risk.
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