Organization Of Petroleum Exporting Countries Research Articles

JOINT VENTURE, TECHNOLOGY TRANSFER AND THE PERFORMANCE OF NIGERIAN OIL AND GAS INDUSTRY

Purpose: The objective of this study is to examine joint venture, technology transfer on the performance of Nigeria's oil and gas sector between 1981-2021. Theoretical Framework: It is indisputable that the Nigerian oil and gas sector is not at peak performance when compared to what is obtainable from its peers in the Organization of Petroleum Exporting Countries (OPEC) (Iheukwumere, 2021; OPEC, ASB 2020). One of the factors responsible for the abysmal performance is ineffective and incoherent technology transfer management through joint venture arrangements (Odusina, 2022). Therefore, there is a need to empirically investigate the impact of joint venture arrangements on Nigeria's oil and gas sector production which lacks sufficient research. Methodology: The ex-post facto design was used where data were collected through secondary sources on the aggregate output of the joint venture companies and the total yearly output of the upstream sector of Nigeria’s oil and gas industry represented the performance of the Nigerian oil and gas sector in the period 1980 to 2021. The collected data were analyzed using the Quantile Autoregressive Distributed Lag (QARDL) approach to test for short and long-run impacts. Findings: The study revealed that there is a significant impact of joint venture arrangements on oil and gas production in both the short run and long run. Research, Practical & Social Implication: The study therefore recommends that policymakers and industry stakeholders should carefully evaluate the terms and conditions of joint ventures to ensure their alignment with the goals of maximizing oil and gas production. Originality/Value: The use of joint venture as a proxy for technology transfer in the production of oil and gas in Nigeria and use of secondary data between 1980-2021 for joint ventures is an eye-opener for further exploration of the study areas in oil and gas production management, particularly in the area of technology transfer, which lacks sufficient research.

Does resource richness help in uplifting the economic status of resource‐abundant developing countries? Evidence from Organization of Petroleum Exporting Countries using methods of movements quantile regression

AbstractIt has been clearly shown that despite having an abundance of natural resources, several resource‐rich countries have experienced slower economic growth that makes it challenging for them to use these resources as a driver of growth. The relationship between economic growth and natural resources has remained an issue of debate over the decades. However, the question of natural resources being a curse or blessing for resource‐abundant economies is still unanswered and gathered the attention of many researchers. The goal of the present study is to provide fresh insights on the matter by estimating the relationship between economic growth, oil resources and natural resources in top oil‐rich Organization of Petroleum Exporting Countries (OPEC) over the 1990–2020 period. The augmented mean group (AMG) and recently introduced methods of movements quantile regression (MMQR) are applied in the study for empirical estimation as the cross sectional dependence and slope heterogeneity are present in data series. The findings of both AMG and MMQR regressions show that oil resource richness does not contribute to uplifting the economic status of the studied countries. However, opposite findings are found for natural resources. Moreover, Granger causality analysis shows that unidirectional causal association is present between natural resources and economic growth but oil resources and economic growth have no causal relationship. It is concluded from the findings that the oil resources confirm the resource curse hypothesis, whereas natural resources confirm the resource bless hypothesis. The findings recommend the policymakers and government to enact adequate policies to connect rent‐based industries to other sectors and improvements in the financial sector to make an avenue for rents to effect economic growth. Most importantly, the government is recommended to pair these measures with anti‐corruption policies to ensure the sustainable use of the resources.

What drives OPEC production policy?

Abstract The Organization of Petroleum Exporting Countries (OPEC) is the international organization with the function of coordinating and unifying the petroleum policies of its member countries. It centrally controls much of the world’s oil supply. While this is generally accepted, it is not well understood how OPEC exercises this broad function, what drives its decision-making. The article closes this gap in the literature through a close study of the published OPEC production policies for the period of 2019–2022. The article finds that internally predicted demand was the primary driver, over external factors that could also have affected production decisions, such as sanctions on OPEC or OPEC+ members, the rise of US shale oil, or climate change mitigation. It follows that consumer states can most effectively influence OPEC petroleum production decision-making by reducing their own oil consumption. The article finally places these findings into a broader context of the law of international organizations, where organizations have a responsibility to exercise their functions within evolving international law. Their decision-making can then be assessed through the three vector-matrix that this article proposes, comprising internal drivers, external factors, and the position of third states.

Natural gas rents and institutions as co-growth drivers: evidence from Gas Exporting Countries Forum with a panel 2SLS approach

PurposeThis study aims to investigate the implications of natural gas rents and institutions as co-drivers of economic growth, focusing on the Gas Exporting Countries Forum (GECF) with panel data between 2001 and 2021.Design/methodology/approachThis research paper uses a specialised two stage estimator, the panel instrumental variable technique (panel IV), which takes care of the potential endogeneity issues in the model.FindingsThe findings show that natural gas rent significantly impacts the economic growth of the GECF. On average, natural gas rent increases the sample’s growth rate by about 2.634% percentage points in the short run. The result indicates that the qualities of institutions (political and economic) have a significant positive long-term effect on the economies of the GECF. In addition, the study’s energy price volatility positively correlates with the countries’ growth.Research limitations/implicationsThere might be a need to investigate the effects of natural gas rents and institutions as co-growth drivers in each country within the GECF. The likelihood exists that the impact of natural gas rents and institutions on economic growth at the country’s level may differ from the outcome of such an experiment on the group level. Because of space and time limitations, this study could not carry out the specific country’s investigation of natural gas rents and institutions as a co-growth driver. That limitation may constitute further study to advance this study to a new height.Practical implicationsWith good institutions, natural gas rent is likely to be an alternative growth driver for some economies that rely on fossil fuels like oil as a growth driver. By extension, the GECF has the potential to rival Organisation of Petroleum Exporting Countries (OPEC) in the global energy market, particularly in achieving Sustainable Development Goal number seven. In essence, evidence in this study suggests that natural gas rent has long-term positive effects on the growth of the GECF, conditioned on good institutions. Moreover, the drive of global energy consumption towards sustainable energy usage is an economic blessing for the GECF. By extension, the demand for natural gas would continue to rise, creating opportunities to improve natural gas rents. By implication, the GECF would continue to benefit from the pursuit of sustainability as the world shifts towards energy consumption with less CO2.Originality/valueFirstly, this study models the qualities of institutions for the GECF. Secondly, to the best of the author’s knowledge, this study is the first attempt to examine natural gas rents and the qualities of institutions as co-determinants of economic growth among the GECF (a potential cartel).

Russian Corporations Implementation of State Policy in Cooperation with Republic of Iraq (Field Development Example)

Introduction. Oil fields in the Republic of Iraq have traditionally been the subject to intense scrutiny of international fuel and energy companies. Iraq is one of the world leaders in terms of oil reserves. According to the Organization of Petroleum ExportingCountries (OPEC), Iraq ranks 4th in 2021 (145,019 million barrels). Russian oil companies are firmly expanding their presence in the Iraqi oil fields. In condition of unprecedented sanctions against Russia from the collective West, our country has to look for ways to ensure its energy sovereignty. Oil development in Iraq can be an effective way for Russian companies to achieve their potential. This article examines the prospects for increasing the reach of Russian oil companies in the oil fields of Iraq taking into account the current geopolitical situation, and the global agenda includes the opportunity for Russia to promote interests both in the Middle East and beyond.Materials and methods. In this study, general and particular scientific methods are applied. The genetic method should be highlighted, as it allowed to trace the process of formation and development of the Russian-Iraqi interaction, and to draw conclusion on the prospects for its expansion. The study also analyzes the international legal framework of Russian-Iraqi cooperation, oil production statistics in Iraq, materials published in the media, official statements by the Russian and Iraqi authorities.The results of the study. The conducted research allowed to substantiate the conclusion that Iraq is the most promising area for extending the activities of Russian oil companies. Nowadays, Russia and Iraq are following the path of multifaceted cooperation, including the economic sphere. Also, the prerequisites that favor joint activities of Russia and Iraq in the fuel and energy field are the proximity of the countries in the scientific and technical sphere, the extreme economic feasibility of increasing the volume of joint economic operations and the compliance of Russian-Iraqi collaboration with the national interests of both states.Discussion and conclusions. Partnership with the Republic of Iraq is of strategic importance for Russia in the Middle East. This is almost a win-win direction of foreign economic activity, since it brings mutual political and economic benefits. Iraq may become a new springboard for the penetration of Russian business deep into the Middle East region. It is necessary to further develop this course in order to adapt Russian politics and economy to the new realities of the international geopolitical situation.

Crude Oil Price Determinants and the Impact Of COVID-19 on Crude Oil Price

Causes of oil price increase have been a subject of much interest and numerous studies given the importance of oil as the main source of energy of the world. In the last two decades, the price volatility of crude oil has always remained a controversy. Literature has two views. The first view argues that the changes in oil prices are due to supply and demand. The other claims that financial variables (speculation and futures markets) are vital in crude oil price changes. The advent of new variables that serve as paradigm for oil price volatility creates the need to understand the intricacies of the oil market. This paper investigated the factors that determine the prices of crude oil together with the degree to which prices have been affected by the global health pandemic the Corona Virus Disease (COVID-19) in 2020 by employing a multiple regression method in its assessment. With oil price as the dependent variable, all other variables were analyzed to assess the dependency of the crude oil prices on these independent variables. Refinery capacity, Organization of Petroleum Exporting Countries (OPEC) production and oil trade movements were found to be the main affecting factors in this work whilst the cases and deaths arising from the COVID-19 confirmed cases and recorded deaths in the year 2020 proved insignificant as a determining crude oil factor

ІМПЛЕМЕНТАЦІЇ СПІЛЬНОЇ ЕНЕРГЕТИЧНОЇ ПОЛІТИКИ ЄВРОПЕЙСЬКОГО СОЮЗУ ТА РЕАЛІЗАЦІЇ БЕЗПЕКОВИХ ЕНЕРГЕТИЧНИХ ІНІЦІАТИВ ЧЕРЕЗ СПІВРОБІТНИЦТВО ЄС З МІЖНАРОДНИМИ ОРГАНІЗАЦІЯМИ

Energy problems in the modern global and European space are gaining maximum relevance and social and political significance. The emergence of energy problems and the need to reform the energy sector led to the formation of the Common Energy Policy of the European Union and the transition from the implementation of energy policy at the level of individual EU member states to the activation of coordinated cooperation between the EU and international organizations in the field of energy. The formation and implementation of the energy policy of the European Union is due to the actualization of such problems as the growing dependence of Europe on the import of energy carriers from the Russian Federation, limited diversification of energy resources, high and unstable prices for energy carriers, growing global demand for energy, problems in the field of energy efficiency. The problem is actualized by the escalation of the Russian-Ukrainian war, Russia’s expansionist energy foreign policy, its energy blackmail and threats against European countries, and, accordingly, the need to introduce sanctions against the aggressor country. The article examines the forms, vectors and directions of cooperation of the European Union with international organizations in the implementation of the EU Common Energy Policy and the implementation of safe energy initiatives. The features of effective cooperation of the European Union with such international organizations as: International Energy Agency, IAEA, Organization of Petroleum Exporting Countries, Cooperation Council of the Arab States of the Persian Gulf, International Solar Alliance, International Agency for Renewable Energy Sources are analyzed. Together with international organizations, the European Union effectively and consistently implements the strategies of forming the energy security system and improving the energy infrastructure of the countries of Central and Eastern Europe. The article substantiates the need for the activation of international and regional European integration in the energy sphere, the formation of consensus between states and international organizations regarding the implementation of the main provisions of the Common Energy Policy of the European Union as a condition and factor for solving energy problems, countering global and regional energy challenges and crises. The mechanisms for improving the energy infrastructure of the countries of Central and Eastern Europe are analyzed. Forms and mechanisms of countering Russia’s manipulations and energy blackmail are defined. The need for the formation of an effective system of European energy security is substantiated.

CO2 emissions policy thresholds for renewable energy consumption on economic growth in OPEC member countries

Purpose This study aims to examine the nexuses between economic growth, trade openness, renewable energy consumption and environmental degradation among organization of petroleum exporting countries (OPEC) members over the period 1990–2019. Design/methodology/approach The empirical strategy for the study includes dynamic heterogeneous panel pooled mean group (PMG), mean group (MG) estimators and dynamic panel threshold regression (TR) analysis. For clarity, PMG and MG are used to explore the long-run relationship between the variables, whereas TR is used to uncover the actionable and complementary policy thresholds in the nexuses between green growth and environmental degradation. Findings The empirical evidence is based on the significant estimates from PMG and TR. First, using PMG, the study finding revealed a long-run relationship between economic growth and environmental degradation via the PMG estimator. Second, using TR, the study revealed an actionable threshold for carbon dioxide emissions (CO2) metrics tons per capita (mtpc) not beyond a critical mass of 4.88mtpc, and the complementary policy threshold of 85% of the share of trade to gross domestic product, respectively. Research limitations/implications The policy relevance of the thresholds is apparent to policymakers in the cartel and for policy formulation. The policy implication of this study is straightforward. Originality/value The novelty of this study stalk in the extant literature on providing policymakers with an actionable threshold for CO2 emissions with the corresponding complementary threshold for trade policies in the nexuses between green growth and the environment.

Nigeria’s Vulnerability to Global Oil Dynamics and Politics

The paper analysed global oil dynamics and politics and their implications for Nigeria’s development. It adopted systems theory as its theoretical framework and employed the qualitative method as its methodology, in which face-to-face interview was used in obtaining primary data from relevant respondents alongside secondary data from relevant academic works. The paper found out that Nigeria has been negatively affected by the changing dynamics of international petroleum politics, particularly by the fall in global oil prices, as Nigeria depends heavily on oil earnings to meet its budgetary provisions for national development. This is further compounded by mismanagement of the accrued oil wealth before the collapse of oil prices and increased geopolitical tension. Nigeria should without further delay, diversify its economy away from oil to other viable and less volatile sectors, such as agriculture and solid minerals, manufacturing, Information and Communications Technology (ICT), aviation services and so on, alongside the strengthening of its bargaining power in global petroleum politics, particularly in the Organization of Petroleum Exporting Countries (OPEC), availing itself of the advantage of its leadership position in OPEC and the political leverage it has as a strategic actor in international oil politics.

Spatiotemporal analysis of energy consumption and financial development in African OPEC countries

PurposeThis study aims to investigate in a country-specific comparative and panel form, the impact of energy use on financial development in Organisation of Petroleum Exporting Countries (OPEC)-African countries of Algeria, Gabon, Libya and Nigeria.Design/methodology/approachWith data sets covering the period 1980 to 2020, this study used a combination of country-specific autoregressive distributed lag model (ARDL) and panel-ARDL as well geo-maps to show the spatiotemporal nuances of the investigated countries.FindingsIt was discovered across the investigated countries and in the panel framework that energy consumption significantly impacts both bank development and institutional development, which are subsets of financial development. In addition, evidence in favor of adjustment of financial development to the shocks and dynamics of energy consumption was found.Practical implicationsIntegrative developmental drive for the two sectors can enhance growth and value-chain interactions for the imperatives of the overall growth and development of the OPEC-African countries.Originality/valueThis study adds to the literature on finance and energy development by the introduction of the spatiotemporal analysis.

Determinants of International Reserves Among Organisation of Petroleum Exporting Countries (OPEC)

Member countries of the Organisation of Petroleum Exporting Countries (OPEC) are always in the news regarding the prices and supply of crude oil to the international market. One of the economic reasons for this is liquidity and the desire to accumulate international reserves by the respective countries. This paper examined the determinants of international reserves among the cartel against the backdrop of the motives for keeping reserves. With data from 2005 to 2018, the adopted variables that were tested with the system of generalised methods of moments (Sy‑GMM) are inflation, exchange rates, oil prices, crude oil dependence, economic crises and others. The results and outputs show that inflation was negatively impactful externally and internally, while FDI inflows recorded negative significance. Economic crises and economic openness were positively significant, while oil prices and exchange rates were not significant determinants of international reserves accumulation. The paper recommends the maximisation of opportunities available by members during economic crises to accumulate reserves that will enable them to diversify from dependence on crude oil exports to include other products and a higher level of openness to open the economy up for competition to make the economies stronger.

A historical overview of the evolution of the oil pricing stages for the period (1859-2020)

Oil as an international strategic commodity, its prices have gone through many changes and developments historically in the oil markets since the beginning of its circulation until now, which has been reflected on the economic, political and social conditions...etc. in the countries of the world. Therefore, countries are interested in how to price it in international markets. This research deals with a theoretical analysis of the historical development of oil prices and the stages of its pricing for the period 18592020- AD. The research aims to show the role of international oil companies and the Organization of Petroleum Exporting Countries in its pricing, and the researchers reached many results, the most important of which are: that oil prices have undergone many changes since the beginning until now And the pricing process of crude oil in its early stages depended on the declared prices due to the complete control of the international oil companies over the oil industry Oil prices and how they are priced have taken on a monopolistic character, while the producing countries did not have any role in determining its prices until the beginning of the seventies of the last century as a result of its monopoly by the major international oil companies. The establishment of the Organization of the Petroleum Exporting Countries and its interference in the oil market helped reduction the dominance of the international oil companies that monopolize the oil market.

ANALYSIS OF INTERNATIONAL OIL PRODUCTION COMPETITON USING GAME THEORY

Uluslararası ham petrol piyasasında oyuncuların OPEC (Petrol İhraç Eden Ülkeler Örgütü) üye ülkeleri ile OPEC’e üye olmayan petrol üreten ülkeler (non-OPEC) oldukları varsayımı yaygındır. Söz konusu oyuncuların kâr maksimizasyonu ve/veya petrol piyasalarını kontrol edebilme hedefiyle üretim seviyesi ve fiyat gibi çeşitli strateji kümeleri kullanarak rekabet eğilimine girmeleri söz konusu piyasanın oyun modelleri ile analiz edilebilirliğini ortaya koymaktadır. Bu çalışmanın amacı, OPEC ve non-OPEC ülkelerinin rekabete dayalı petrol üretim miktarlarını oyun teorisi temelinde analiz etmektir. Bu amaç doğrultusunda, oyunculara ait 1972-2019 dönemini kapsayan üretim miktarları ve ham petrol fiyat serileri kullanılmıştır. Petrol piyasalarındaki rekabetin varlığına işaret eden üretim fonksiyonlarına ait katsayılar Tam Bilgi En Küçük Kareler (FMOLS- Fully Modified Ordinary Least Square) yöntemi ile tahmin edilmiştir. Elde edilen modellerden Cournot-Nash ve Stackelberg denge çözümleri hesaplanmıştır. Cournot-Nash denge düzeyine göre Stackelberg denge düzeylerinde lider oyuncunun üretiminin artığı, takipçi oyuncunun üretim düzeyinin ise azaldığı görülmüştür. Bulgular Cournot-Nash denge çıktılarının Stackelberg denge çıktılarından daha yüksek olduğu çalışmalar ile paralellik göstermiştir. Oyuncuların üretim miktarı ve fiyat stratejileri vasıtasıyla optimum üretim düzeyine ulaşmaları için Cournot-Nash dengesinde kalmaları önerilmektedir.

Уго Чавес ‒ деятель планетарного масштаба

The article analyzes the international course of the Bolivarian Republic of Venezuela in the first decade of the 2000s. The author believes that considering this particular period of the recent history of Venezuela as an integral part of the world historical process, is particularly important since the formation of the Hugo Chavez regime with its peculiar foreign policy and foreign economic steps took place precisely in the first half of the first decade of the 21st century. With the constitutional rise to power of the charismatic leader Hugo Chavez, the country's foreign pol-icy acquired a multi-vector character embracing all regions of Earth. Hugo Chavez strengthened the Organization of Petroleum Exporting Countries, in collaboration with Fidel Castro founded the "Bolivarian Alternative for America" (ALBA), which united the left-wing radical regimes of the continent; he established contacts with many leaders of the Third World, has confronted the United States, established friendly relations with China and a strategic partnership with Russia. This arti-cle is devoted to some, albeit very significant, aspects of Chavez’s for-eign policy.

Copula change point detection knowledge: The dynamic connection between international crude oil and China's nonferrous metal market

Crude oil, “the blood of industry” plays an irreplaceable role in the field of industrial production. The fluctuation in oil prices directly affects metal mining and processing, which in turn affects the dynamic development of the nonferrous metal market. This study examines the dynamic connection between international crude oil and China's nonferrous metal market using a change-point detection copula method. Under hypothesis testing, the change points in the dynamic connection are well detected using our method. The results show that the occurrence of change points may be related to the production policy of the Organization of Petroleum Exporting Countries (OPEC). Information about the connection before the change points will obscure the useful information, resulting in inaccurate knowledge about the dynamic connection. In addition, the connection has a profound impact on return forecasts. The test results based on sample data from the post-change point are more likely to accept the null hypothesis. This accuracy of the return forecasts based on sample data from the post-change point is attributed to the exact establishment of the dynamic connection between crude oil and nonferrous metal market. When returns are forecast accurately, useful market information can be developed into “good knowledge” about the dynamic connection. Hence, the connection before the change points makes little contribution to forecast returns; the useful information for forecasting is the connection starting from the change points. This “good knowledge” about the dynamic connection is conducive to accurately predicting returns, thereby solving the relation between risk prevention and sustained development.

Regulation of oil and gas reserves reporting in Saudi Arabia: Review and recommendations

The regulatory framework and guidelines for reserves reporting in Saudi Arabia are reviewed – the ongoing privatization process of the national oil company (Saudi Aramco) will benefit from the establishment of transparent asset appraisal rules. Previously, Saudi oil reserves were exclusively reported to the Organization of Petroleum Exporting Countries (OPEC) as mandated by confidential considerations and internal policies of the Saudi government. Truly independent appraisal of oil and gas reserves as commonly performed by oil and gas investment analysts becomes increasingly relevant when national oil and gas companies are seeking to privatize and must gain the trust of the international investment community. Under such scenarios the regulation of – and compliance with – the governing reserves reporting guidelines need to be conducted with the utmost transparency. Successful monetization of the corporate asset value via bond issues and initial public offerings (IPO) to potential new shareholders critically depends on independent reserves appraisals. Some of the complexities of reserves estimations for a national oil company, such as Saudi Aramco, making the transition – from a formerly wholly state-owned enterprise to a public-private-partnership company – are highlighted. Recommendations are given for improved reserves reporting governance.

An assessment of Nigeria’s engagement with the organization of petroleum exporting countries (OPEC) in the fourth republic, 1999-2019

An assessment of Nigeria’s engagement with the organization of petroleum exporting countries (OPEC) in the fourth republic, 1999-2019

The implication of Energy on Nigeria’s Economy: Case Study of Crude Oil Energy Source

The shortfall in crude oil production, the major source of energy supply and revenue generation in Nigeria, affects all spheres of activities in the country. Activities like politics, economic, budgeting, infrastructural development, the standard of living, and foreign exchange reserve. Therefore, it is imperative to address the implication of energy (crude oil source) on the economy of Nigeria. Hence, a linear regression analysis was used and by first creating a link between oil production (main energy source) and oil earnings (economy) to establish a relationship upon which social-political factors such as the organization of petroleum exporting countries (OPEC), civil disturbance, flexible regulating framework, infrastructural services, community inclusion for equitable sharing of benefit, and Niger Delta development commission are used as check and balance on oil production and oil earning and their implications on the Nigeria economy. By way of calibration, the paper examines the amount of oil per barrel needed to be produced in a year that would guarantee an increase in oil earnings in Nigeria. The data used for this analysis were collected from the central bank of Nigeria (CBN) statistic bulletin on crude oil production and total earning in Nigeria between 1980 to 1999. The paper also suggests measures that would enhance the increase in the production of oil from which the country would be able to earn more revenue. The result shows that increasing oil production will simultaneously increase earnings from oil and, consequently, overhaul the various activities such as economy, infrastructural development, health, education sectors, and living standard of the citizen.

New Insights into Development of an Environmental – Economic Model Based on a Composite Environmental Quality Index: A Comparative Analysis of Economic Growth and Environmental Quality Trend

In order to fill the research gap regarding the use of a comprehensive index that includes all dimensions of environmental pollution, this study sought to develop a composite environmental quality index to tackle with the possible bias and remove the possible linearity in the experimental research model. Principal Component Analysis (PCA) and Artificial Neural Network (ANN) methods were used to obtain this composite index. This study used six environmental indicators from two groups of Organization of Petroleum Exporting Countries (OPEC) and Organization for Economic Co-operation and Development (OECD) during 2008-2019. According to the obtained error criteria related to the two methods, ANN method was used to calculate the weight of environmental indicators due to having the lowest error criteria and therefore reliable results. Finally, using this composite index, the trend of economic growth and environmental quality were analyzed graphically. The results showed that along with the upward trend of economic growth, the quality of environment follows a downward trend in OPEC countries and an upward trend in OECD countries. At the end of this paper, some limitations of study are presented, and some suggestions for future studies are provided as well.

Strategies of Decolonization: Economic Sovereignty and National Security in Libyan–US Relations, 1949–1971

AbstractThis article examines Libyan–US relations through the historical lenses of decolonization, international law, the Cold War, and the international political economy. The Libyan government exercised its newfound sovereignty in the postwar era through the negotiation of ‘base rights’ for the US government and ‘oil rights’ for corporations owned by US nationals. They did so in conjunction with other petrostates and through international organizations such as the United Nations, the Arab League, and the Organization of Petroleum Exporting Countries. Libyan leaders’ strategy of using sovereignty to promote corporate competition relied on connections with similarly situated nations, and it was through global circuits of knowledge that they pressed the outer limits of economic sovereignty. At the same time, the US government consistently accommodated Libyan policies through Cold War arguments that linked the alliance with Libya to US national security. Those deep foundations of sovereignty and security created the conditions for the transformation of the global oil industry after Libya’s 1969 revolution.