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1 - Copy - Copy (10) - National oil companies: Definition:...

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National oil companies: Definition: A national oil company is an oil company fully or in the majority owned by a national government. Significance: There has been a shift in power and wealth from western companies to governments in oil-rich states. Expropriations of oil companies increased in 1960 with the formation of OPEC, peaked in the 1970’s, and decreased afterwards. Cite/Example: Professor Ross’s Lecture 14 “The Resource Curse I”. Example: World’s biggest petroleum companies: 1) Saudi Aramco. 2) National Iranian Oil Co. 3) Iraqi National Oil Co. Of the world’s 15 largest petroleum companies, 12 are state-owned/nationalized. Oil and Democracy: Definition: Oil hinders transitions to democracy, so do non-fuel minerals. Some causal mechanisms that Ross mentioned in his 2001 article “Does Oil Hinder Democracy” are: "rentier effect," which suggests that resource-rich governments use low tax rates and patronage to dampen democratic pressures; a "repression effect," which holds that
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