A bunch of these countries ran into debt sold

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: owned by government Saudi Aramco, Abu Dhabi, Petronas, Statoil, Petrobras ! well- run like companies, have enough capital to make the investments they need Run oil ministry as if it’s a ministry Oil revenue goes back to government, how they’re spent is government decision Iran, Mexico, Nigeria, Venezuela – run like ministries, not well capitalized. Try to start running like a company, but its hard because of demands of the public, and don’t have to have a state within- a- state (e.g. small group of really rich people running the oil company that can boss state around) Outside sources of capital: Privatize some % of non- government shareholders Loan markets, bonds Drill in other countries? Oil- for- loan agreements Kazakhstan vs. Azerbaijan K: new type of oil, don’t know how to extract it (sulfur problems) – wanted one BIG contract with someone who knows how to extract it. Open to anyone, because Russia was just gonna be a minor player. Contracts with Chevron, the state retains 51% of the oil. A: wants lots of small companies, from anywhere besides Russia. Strategy so that they have lots of markets, protect themselves from Russia. When oil co...
View Full Document

Ask a homework question - tutors are online