Resource Nationalism: An Analysis of Four Energy Nations

Abstract

Abstract Objectives/Scope: This paper seeks to explore the concept of ‘resource nationalism’ as it relates to four oil and gas producing countries. The drive to capitalise on hydrocarbon resources goes far beyond the sale of concession rights. An oil and gas sector run for and by the people is a vision that many countries share. This paper explores the case of four countries who have attempted to make that vision a reality and seeks to identify key lessons through that exploration. Methods, Procedures, Process: My approach has been to identify four countries - Brazil, Mexico, Nigeria and Iraq - and to then engage in extensive primary and secondary research (significantly informed by my participation in global events relating to the oil and gas sector in these countries) to understand how each nation has attempted to make real the vision of resource nationalism. Within this context, an analysis has been made of government policy, industry involvement and the contribution of the education and training system. Through doing this - and through a comparison of the four approaches - we can draw powerful conclusions about how a country rich in hydrocarbons is able to build an industry that truly serves the people of that country. Results, Observations, Conclusions: Analysis of the target countries identified reveals a complex picture and one that demonstrates the importance of an integrated approach to local content, local participation and skills development. In each of the four cases explored, the aim of the respective governments has been to build a nationally-led hydrocarbon sector through proactive policy, skills development and interaction with the private sector. The role of the national oil company has also, in each case, been critical. However, comparative impact has been mixed and lessons can be learned from both the successes and failures of these approaches. Ultimately, the ability of a country to fully capitalise on the social, economic and employment benefits of a thriving hydrocarbon sector will rest on a number of inter-connected factors that create the context for long-term, strategically driven programmes of workforce and skills development allied to coherent and well-implemented policies in relation to local content and a modern, dynamic national oil company. Novel/Additive Information: There has not been a study of this kind undertaken that explores the factors that contribute to resource nationalism and the role of education, local content policy and a national oil company in relation to the comparative strength and resilience of the hydrocarbon sector. By understanding this dynamic, governments, educators and the industry can achieve better economic and societal outcomes in oil- and gas-producing countries, particularly in those countries that are relatively new to oil and gas production.