There has been much attention in the popular media paid to corruption in the oil-exporting countries of the Persian Gulf. This book investigates various forms and measures of corruption, considers whether it is more acute in Gulf countries than elsewhere and outlines the special forms ittakes in oil and natural gas rich economies. The authors also examine the major factors that promote corrupt practices, the impact on economic growth and social development and the controversial issues around the role of Islam.
National Oil Companies (NOCs) directly or indirectly control the majority of oil and gas reserves. As such, they are of great consequence to their country's economy, to importing countries' energy security, and to the stability of oil and gas markets. The paper analyzes the available evidence on the objectives, governance and performance of 20 NOCs from both net importing and net exporting countries, and draws conclusions about the design of policies and measures that are more likely to lead to social value creation. NOCs differ from private companies on a number of very important variables, including the level of competition in the market in which they operate, their business profile along the sector value chain, and their degree of commercial orientation and internationalization. Most share some core characteristics: they are usually tied to the 'national purpose' and serve political and economic goals other than maximizing the firm's profits. This paper introduces a conceptual model to analyze value creation by NOCs that takes into consideration their complex objective function. Our analysis aims to answer the following questions: Are certain corporate governance arrangements more suited than others to promote value creation? Is good geology a pre-condition for NOC value creation? Are there benefits from exposing the NOC to competition from private oil companies? Does the development of forward and backward linkages hamper NOC value creation?
There has been much attention in the popular media paid to corruption in the oil-exporting countries of the Persian Gulf. This book investigates various forms and measures of corruption, considers whether it is more acute in Gulf countries than elsewhere and outlines the special forms ittakes in oil and natural gas rich economies. The authors also examine the major factors that promote corrupt practices, the impact on economic growth and social development and the controversial issues around the role of Islam.
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