National Oil Companies and Value Creation.
Title:
National Oil Companies and Value Creation.
Author:
Tracy, Brandon S.
ISBN:
9780821388327
Personal Author:
Physical Description:
1 online resource (182 pages)
Series:
World Bank Working Papers
Contents:
Title Page -- Copyright -- Contents -- Acknowledgments -- Abbreviations and Acronyms -- Executive Summary -- 1. The Petroleum Sector Value Chain -- 1.1 Overview of the Value Chain -- 1.2 Policy Decisions Affecting Value Creation -- 1.1.1 Industry Participation -- 1.1.2 Licensing and Petroleum Contracts -- 1.1.3 Taxation -- 1.1.4 Depletion Policy -- 1.3 Value Creation Through Integration -- 1.4 Local Content Policies and Value Creation -- 1.5 Conclusion -- 2. The Establishment of a NOC -- 2.1 A Brief History of NOCs -- 2.1.1 Industry Participation -- 2.1.2 The Emergence of NOCs -- 2.1.3 OPEC Revolution and Post-Colonial World -- 2.1.4 The Reaction of Consumer States -- 2.1.5 A New Agenda: Liberalization and Privatization -- 2.1.6 The End of History? -- 2.1.7 Developments Since 2000 -- 2.2 Arguments in Favor of NOCs -- 2.2.1 Historical Context -- 2.2.2 The Importance of the Petroleum Sector -- 2.2.3 Political Gains from State Control -- 2.2.4 Efficiency and Monitoring of Operations -- 2.2.5 Petroleum Rent Maximization -- 2.2.6 Socioeconomic Issues and Priorities -- 2.3 Practical Difficulties and Setbacks with NOCs -- 2.3.1 Historical Context and Ideology -- 2.3.2 Economic Cost of Political Control -- 2.3.3 Operational Inefficiencies -- 2.3.4 Lack of Competition -- 2.3.5 Subsidies and Noncommercial Objectives -- 2.3.6 Weak Corporate Governance -- 2.3.7 Funding Strategy and Requirements -- 2.3.8 Conflict of Interests and Balance of Control -- 2.4 Conclusion -- 3. The Performance and Value Creation of NOCs -- 3.1 A Conceptual Model of Value Creation -- 3.2 Measuring the Performance of NOCs: The Value Creation Index -- 3.2.1 Proxy Measures Used in VCI -- 3.2.2 Determination of VCI -- 3.3 The Value Drivers -- 3.3.1 Selection of Proxy Variables -- 3.4 Conclusion -- 4. Case Studies and Lessons Learned -- 4.1 Exploratory Analysis of Value Drivers.
4.1.1 Selection of Proxy Variables -- 4.1.2 Indications from the Statistical Analysis -- 4.2 Case Studies -- 4.3 The Corporate Governance of NOCs -- 4.3.1 Context Variables and NOC Corporate Governance -- 4.3.1.1 External Governance -- 4.3.1.2 Internal Governance -- 4.3.2 Selected NOCs Corporate Governance Scorecard -- 4.4 Lessons Learned -- 5. Conclusion -- Appendixes -- Appendix 1 Key Stages of the Value Chain -- Appendix 2 Examples of Local Content Policies -- Appendix 3 Overview of Key Research on NOCs -- Appendix 4 Exploratory Statistical Model -- Appendix 5 Relevance of Government Support to the Credit Rating of NOCs -- Back Cover.
Abstract:
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?.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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Electronic Access:
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