Some comments on nationalization of oil properties by OPEC members
The author believes that, once the nationalization of the oil industry in such countries as Kuwait, Venezuela, and Saudi Arabia is complete, the producing countries and the companies will be in a position to deal with each other in a more realistic and productive manner than in the past. Total nationalization is not the most appropriate arrangement for all the producing countries. Participating interests less than 100 percent, production sharing, service contracts, and joint venture arrangements in Nigeria, Libya, Algeria, Abu Dhabi, Indonesia, Ecuador, and Gabon are examples cited. The impact of the recent events on consumer nations is examined. An analysis of what can be expected of the international oil companies in their new role following nationalization is made. It is concluded that higher oil prices are not entirely responsible for the high rates of inflation in consuming countries; consuming countries have learned that the financial burden of recycling OPEC's surplus finds may be much more manageable than was predicted; and the negotiations during nationalization talks in Kuwait, Venezuela, and Saudi Arabia have all concluded that the company must have a continuing role event though it is in a less important position, as a service contractor rather than as owner or concessionaire. The author summarized his suggestions to make the international energy system work. (MCW)
- Research Organization:
- Gulf Energy and Minerals Co.-International, Houston, TX
- OSTI ID:
- 7280717
- Journal Information:
- J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 1:2; ISSN JENDD
- Country of Publication:
- United States
- Language:
- English
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ASIA
ECONOMIC POLICY
ECONOMICS
ENERGY CONSUMPTION
INDUSTRY
INTERNATIONAL ORGANIZATIONS
KUWAIT
MARKET
MIDDLE EAST
OPEC
PETROLEUM INDUSTRY
PRODUCTION
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