The Oil Business And The State

National oil companies are big business with about 80 percent of the world’s proven oil reserves, and they are crucial to the world’s energy supplies. They are giants, some of the world’s largest companies, measured by market capitalisation, cash flow and investment. Little is known about their modus operandi, how they make decisions about investment and production or about relations with their government-owners. However, it is known that they conduct business with a political mandate, often with multiple long-term objectives, broadly defined and hard to quantify. Unclear mandates give national oil companies leeway to pursue their own distinctive interests, apart from those of the government-owner. As investors, governments are less zealous than private investors. They generally observe multiple objectives, not only return on capital. Therefore, the senior management of national oil companies enjoy more discretionary power and consider longer time horizons than their counterparts in the private sector. The Oil Business and the State explains the practice of state ownership in a capital-intensive industry with high risks and high return, and how these companies act in a market with imperfect competition. This book looks to give readers more insight into the oil industry, into the background of oil exporting countries as well as the economic and political challenges confronting them, including problems of state ownership. The book discusses wider consequences of China replacing the United States as the world’s leading oil importer. It will be of interest to researchers, academics and students in the fields of international business, management history, corporate governance, political economy and economic development of oil-rich countries.

Why have democratic governments failed to take serious steps to reduce carbon emissions despite dire warnings and compelling evidence of the profound and growing threat posed by global warming? Most of the writing on global warming is by scientists, academics, environmentalists, and journalists. Kevin Taft, a former leader of the opposition in Alberta, brings a fresh perspective through the insight he gained as an elected politician who had an insider's eyewitness view of the role of the oil industry. His answer, in brief: The oil industry has captured key democratic institutions in both Alberta and Ottawa. Taft begins his book with a perceptive observer's account of a recent court casein Ottawa which laid bare the tactics and techniques of the industry, its insiders and lobbyists. He casts dramatic new light on exactly how corporate lobbyists, politicians, bureaucrats, universities, and other organizations are working together to pursue the oil industry's agenda. He offers a brisk tour of the recent work of scholars who have developed the concepts of the deep state and institutional capture to understand how one rich industry can override the public interest. Taft views global warming and weakened democracy as two symptoms of the same problem — the loss of democratic institutions to corporate influence and control. He sees citizen engagement and direct action by the public as the only response that can unravel big oil's deep state.

National oil companies (NOCs) play an important role in the world economy. They produce most of the world's oil and bankroll governments across the globe. This book explains the variation in performance and strategy for NOCs and provides fresh insights into the future of the oil industry.

Why have democratic governments failed to take serious steps to reduce carbon emissions despite dire warnings and compelling evidence of the profound and growing threat posed by global warming? Most of the writing on global warming is by scientists, academics, environmentalists, and journalists. Kevin Taft, a former leader of the opposition in Alberta, brings a fresh perspective through the insight he gained as an elected politician who had an insider's eyewitness view of the role of the oil industry. His answer, in brief: The oil industry has captured key democratic institutions in both Alberta and Ottawa. Taft begins his book with a perceptive observer's account of a recent court casein Ottawa which laid bare the tactics and techniques of the industry, its insiders and lobbyists. He casts dramatic new light on exactly how corporate lobbyists, politicians, bureaucrats, universities, and other organizations are working together to pursue the oil industry's agenda. He offers a brisk tour of the recent work of scholars who have developed the concepts of the deep state and institutional capture to understand how one rich industry can override the public interest. Taft views global warming and weakened democracy as two symptoms of the same problem — the loss of democratic institutions to corporate influence and control. He sees citizen engagement and direct action by the public as the only response that can unravel big oil's deep state.

This book, originally published in 1996, traces the development of US government policy toward the oil industry during the 1920s and 1930s when the domestic syustem of production control was established. It then charts the deveopment and collapse of oil import controls, and the wild scramble for economic rents generated by Government regulation. It discusses the two oil crises and the ‘phantom’ Gulf War crisis, and the importance of public opinion in shaping the policy agenda. It also provides an in-depth study of Congressional oil votes from the 1950s to the 1980s and the formation of oil policy, beginning with theories of economic regulation, the role of interest groups in developing the policy agenda and the role of money in politics.

This volume provides a new theoretical framework for understanding both the development of the international oil industry and the role played by oil in the emergence of US postwar hegemony. As such, it directly addresses contemporary developments in international relations theory and the recent debates over the character and longevity of United States hegemony. While providing a narrative account of the oil industry from its origins in the nineteenth century through to the present, the main focus of American Hegemony and World Oil is an analytic treatment of the postwar period. Drawing widely on political economy, international relations and the recent literature on the state, the book offers a comprehensive study of the connections between United States hegemony and the international oil industry. The book begins with a critical discussion of theoretical approaches in political economy, international relations, and state theory which have informed discussions of the oil industry. Bromley goes on to survey the early emergence of the industry and its interwar consolidation, the ordering of the postwar industry under United States leadership, and the crisis of the 1970s. The book ends with an examination of the post-OPEC restructuring and the current strategies of the US, Japan, Europe, OPEC and the USSR. This book will be of interest to students of political economy, international relations, and political sociology.

In Democracy in Alberta: The Theory and Practice of a Quasi-Party System, published in 1953, C. B. Macpherson explored the nature of democracy in a province that was dominated by a single class of producers. At the time, Macpherson was talking about Alberta farmers, but today the province can still be seen as a one-industry economy—the 1947 discovery of oil in Leduc having inaugurated a new era. For all practical purposes, the oil-rich jurisdiction of Alberta also remains a one-party state. Not only has there been little opposition to a government that has been in power for over forty years, but Alberta ranks behind other provinces in terms of voter turnout, while also boasting some of the lowest scores on a variety of social welfare indicators. The contributors to Alberta Oil and the Decline of Democracy critically assess the political peculiarities of Alberta and the impact of the government’s relationship to the oil industry on the lives of the province’s most vulnerable citizens. They also examine the public policy environment and the entrenchment of neoliberal political ideology in the province. In probing the relationship between oil dependency and democracy in the context of an industrialized nation, Alberta Oil and the Decline of Democracy offers a crucial test of the “oil inhibits democracy” thesis that has hitherto been advanced in relation to oil-producing countries in the Global South. If reliance on oil production appears to undermine democratic participation and governance in Alberta, then what does the Alberta case suggest for the future of democracy in industrialized nations such as the United States and Australia, which are now in the process of exploiting their own substantial shale oil reserves? The environmental consequences of oil production have, for example, been the subject of much attention. Little is likely to change, however, if citizens of oil-rich countries cannot effectively intervene to influence government policy.