Abstract
This study is dedicated to the interaction between oil and gas companies and local communities that depend deeply on the production of oil. One of the key concerns of all oil-dependent communities is the distribution of oil rent: Who participates in decision making regarding the distribution of oil profits and who can claim the benefits and on what grounds? Benefit sharing arrangements are used to decide such matters in global practice. Using Russian Arctic and subarctic areas as examples, we analyze the main rules and practices of the distribution of benefits from oil production at the local level. This study focuses on the coexistence of oil companies and indigenous people, many of whom practice a traditional way of life. We also pay attention to the institutionalization of the norms and rules of oil-dependent communities at the local level.
Highlights
The introduction of new technologies in the 19th century suddenly boosted the value of oil, making it one of the symbols of economic progress and political power in the world
This study focuses on the sharing of benefits in the regions of northern Russia where oil companies operate: Nenets Autonomous Okrug (NAO), Khanty-Mansi Autonomous Okrug (KMAO), Yamalo-Nenets Autonomous Okrug (YNAO), and Sakhalin Island
The effectiveness and use of formal rules governing the distribution of benefits between oil companies, authorities and indigenous people are mostly determined by the values and norms prevailing in a given society
Summary
The introduction of new technologies in the 19th century suddenly boosted the value of oil, making it one of the symbols of economic progress and political power in the world. Indigenous peoples leading a traditional life are the most vulnerable group in terms of industrial development in their territories, and they are occasionally forced to fight for their rights in conflicts with oil companies. The increase in oil production led to a decrease in agricultural land area used by the locals This problem is very acute for indigenous people, who practice a traditional lifestyle. Conflicts were caused by the amount of money paid by the oil companies to local people to compensate for damage This issue was very acute in the 1990s, when there were no formalized rules for assessing compensation [18,19]. We analyze the different ways to resolve such conflicts between companies and local communities in oil-dependent Russian regions. The main questions of this research are the following: (1) How are the rules of oil rent distribution institutionalized at the local level in oil-dependent communities and (2) how does the order of the distribution of oil rent affect societal relations?
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