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Vertical Integration Among Oil-producing Countries

Published online by Cambridge University Press:  23 November 2023

Abstract

This paper explores the vertical integration of oil-producing countries. Attempts at vertical integration were prominent among oil-producing countries throughout most of the twentieth century, but particularly following the surge of resource nationalism in the 1970s. Vertical integration attempts have largely been regarded as a sideshow in the history of global oil. This article argues that vertical integration was a crucial aspect of producer country strategies into the 1970s and 1980s, and that it affected the organization of national oil industries in important ways. It does so by exploring the Norwegian case. The article demonstrates the importance of vertical integration to the long-term development of the Norwegian oil industry. It discusses the implications of these findings for the study of vertical integration in other oil-producing countries.

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Article
Copyright
© The Author(s), 2023. Published by Cambridge University Press on behalf of Business History Conference

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References

Bibliography

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Stevens, Paul. Vertical Integration and the International Oil Industry: A Conceptual Error and Some Thoughts on Its Implication. Cleveland, OH: International Association for Energy Economics, 2000.Google Scholar
Stevens, Paul, Lahn, Glada, and Kooroshy, Jaakko. The Resource Curse Revisited. London: Chatham House, London: 2015.Google Scholar
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Schrijver, Nico. Sovereignty over Natural Resources: Balancing Rights and Duties. Cambridge: Cambridge University Press, 1997.CrossRefGoogle Scholar
Sejersted, Francis. Systemtvang eller politikk: Om utviklingen av det oljeindustrielle kompleks i Norge. Oslo: Universitetsforlaget, 1999.Google Scholar
Sluyterman, Keetie. Keeping Competitive in Turbulent Markets: 1973–2007. A History of Royal Dutch Shell, vol. 3, edited by Howarth, Stephen, Jonker, Joost, Sluyterman, Keetie, and van Zanden, Jan Luiten. Oxford: Oxford University Press, 2007.Google Scholar
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Thomassen, Eivind. Commerce and Politics: Statoil and Equinor 1972–2001. Oslo: Scandinavian University Press, 2022.Google Scholar
Vernon, Raymond. Sovereignty at Bay: The Multinational Spread of U.S. Enterprises. London: Basic Books, 1971.Google Scholar
Victor, David G., Hults, David R., and Thurber, Mark. Oil and Governance: State-Owned Enterprises and the World Energy Order. Cambridge: Cambridge University Press, 2012.Google Scholar
Willoch, Kåre. Statsminister. Oslo: Schibsted, 1990.Google Scholar
Yergin, Daniel. The Prize: The Epic Quest for Oil, Money and Power. New York: Free Press, 2009.Google Scholar
Adelman, Morris A., and Zimmerman, Martin B.. “Prices and Profits in Petrochemicals: An Appraisal of Investment by Less Developed Countries.” Journal of Industrial Economics 22, no. 4 (1974): 245254.CrossRefGoogle Scholar
Al-Moneef, Majid A.International Downstream Integration of National Oil Companies.” In Strategic Positioning in the Oil Industry, edited by Stevens, Paul. Abu Dhabi, UAE: Emirates Center for Strategic Studies and Research, 1998.Google Scholar
Barrera-Rey, Fernando. The Effects of Vertical Integration on Oil Company Performance. Oxford: Oxford Institute for Energy Studies, 1995.Google Scholar
Boon, Marten. “The Global Oil Industry.” In The Routledge Companion to the Makers of Global Business, edited by Da Silva Lopes, Teresa, Tworek, Heidi, and Lubinski, Christina, 467482. London: Routledge, 2019.CrossRefGoogle Scholar
Bucheli, Marcelo. “Major Trends in the Historiography of the Latin American Oil Industry.” Business History Review 86 (2010): 339362.CrossRefGoogle Scholar
Gjersø, Jonas Fossli. “The Great Leap Offshore: Sino-Norwegian Relations and Petro-Knowledge Transfers 1976–97.” Enterprise & Society 24, no. 2 (2023): 617641.CrossRefGoogle Scholar
Gormley, Tonje Pareli, and Kristensen, Merete. “Hydrocarbon Policy and Legislation: Norway.” In Regulating Offshore Petroleum Resources: The British and Norwegian Models, edited by Pereira, Eduardo G. and Bjørnebye, Henrik, 3995. Northampton, UK: Edward Elgar, 2019.Google Scholar
Herath, Dhamika. “The Discourse of Development: Has It Reached Maturity?Third World Quarterly 30, no. 8 (2009): 14491464.CrossRefGoogle Scholar
Hertog, Steffen. “Petromin: The Slow Death of Statist Oil Development in Saudi Arabia.” Business History 50, no. 5 (2008): 645667.CrossRefGoogle Scholar
Hults, David R.Hybrid Governance: State Management of National Oil Companies.” In Oil and Governance: State-Owned Enterprises and the World Energy Supply, edited by Victor, David G., Hults, David R., and Thurber, Mark, 62120. Cambridge: Cambridge University Press, 2012.Google Scholar
Hveem, Helge. “Norske utenlandsinvesteringer og norsk (utenriks)politikk: Dårlig forbindelse?Internasjonal Politikk 67, no. 3 (2009): 380411.CrossRefGoogle Scholar
Kobrin, Stephen J.Diffusion as an Explanation of Oil Nationalization: Or the Domino Effect Rides Again.” Journal of Conflict Resolutions 29, no. 1 (1985): 332.CrossRefGoogle Scholar
Lie, Einar. “Context and Contingency: Explaining State Ownership in Norway.” Enterprise & Society 17, no. 4 (2016): 904930.CrossRefGoogle Scholar
Lie, Einar. “Learning by Failing: The Origins of the Norwegian Oil Fund.” Scandinavian Journal of History 43, no. 2 (2018): 284299.CrossRefGoogle Scholar
Nerheim, Gunnar. “Development Patterns in the Petrochemical Industry in the Nordic Countries, 1960–2000.” In The Global Chemical Industry in the Age of the Petrochemical Revolution, edited by Galambos, Louis P., Hikino, Takashi, and Zamagni, Vera, 224250. Cambridge: Cambridge University Press, 2007.Google Scholar
Nissen, Ada. “A Greener Shade of Black? Statoil, the Norwegian Government and Climate Change,1990–2005.” Scandinavian Journal of History 46, no. 3 (2021): 408429.CrossRefGoogle Scholar
Ryggvik, Helge. “A Short History of the Norwegian Oil Industry: From Protected National Champions to Internationally Competitive Multinationals.” Business History Review 89, no. 1 (2015): 341.CrossRefGoogle Scholar
Sachs, Wolfgang. “Preface to the New Edition.” In The Development Dictionary: A Guide to Knowledge as Power, edited by Sachs, Wolfgang, vi–xiv. London: Zed Books, 2010.Google Scholar
Siebert, Horst, and Rauscher, Michael. “Vertical Integration by Oil-exporting Countries.” Intereconomics 20, no. 5 (1985): 211216.CrossRefGoogle Scholar
Sogner, Knut. “Creating and Protecting Paths: Learning in an Entrepreneurial State.” Enterprise & Society 24, no. 2 (2023): 480499.CrossRefGoogle Scholar
Thomassen, Eivind. “Taking a Leaf out of OPEC’s Book? The Significance of Developing Producer Country Models for State Involvement in North Sea Oil Production.” In Handbook of OPEC and the Global Energy Order: Past, Present and Future Challenges, edited by Claes, Dag Harald and Garavini, Giuliano, 225240. London: Routledge, 2020.CrossRefGoogle Scholar
Thurber, Mark C., and Tangen, Benedicte Istad. “Norway’s Evolving Champion: Statoil and the Politics of State Enterprise.” In Oil and Governance: State-Owned Enterprises and the World Energy Supply, edited by Victor, David G., Hults, David R., and Thurber, Mark, 599654. Cambridge: Cambridge University Press, 2012.Google Scholar
Evensen, Jens. Oversikt over oljepolitiske spørsmål bl.a. på bakgrunn av utenlandsk oljelovgivning og utenlandsk konsesjonspolitikk. Oslo: Industridepartementet, 1971.Google Scholar
Stevens, Paul. Vertical Integration and the International Oil Industry: A Conceptual Error and Some Thoughts on Its Implication. Cleveland, OH: International Association for Energy Economics, 2000.Google Scholar
Stevens, Paul, Lahn, Glada, and Kooroshy, Jaakko. The Resource Curse Revisited. London: Chatham House, London: 2015.Google Scholar
Tordo, Silvana, Tracy, Brandon S., and Arfaa, Noora. National Oil Companies and Value Creation. Washington, DC: World Bank, 2011.CrossRefGoogle Scholar
Tordo, Silvana, Brandon, S. National Oil Companies and Wealth Creation: Case Studies. Vol. 2. Washington, DC: World Bank, 2011.Google Scholar
Aven, Håvard Brede. “Høgres syn på statleg eigarskap i norsk oljeverksemd 1970–1984.” Master’s thesis, University of Oslo, 2014.Google Scholar
Kuiken, Jonathan. “Empires of Energy: Britain, British Petroleum, Shell, and the Remaking of the International Oil Industry, 1957–1979.” Doctoral dissertation, Boston College, 2013.Google Scholar
Nordbotten, Øyvind Haug. “Fra full satsing til total retrett: Statoils eierskap til bensinstasjoner.” Master’s thesis, University of Oslo, 2021.Google Scholar
Ryggvik, Helge. “Norsk oljevirksomhet mellom det nasjonale og det internasjonale: En studie av selskapsstruktur og internasjonalisering.” Doktogradsavhandling, Universitetet i Oslo, 2000.Google Scholar
Sanders, Andreas R. Dugstad. “Europe’s Northern Resource Frontier: The Political Economy of Resource Nationalism in Sweden and Norway 1888–1936.” Doctoral dissertation, European University Institute, 2018.Google Scholar
Thomassen, Eivind. “The Crude Means to Mastery: Norwegian National Oil Company Statoil (Equinor) and the Norwegian State 1972–2001.” PhD thesis, University of Oslo, 2020.Google Scholar
Government proposition to parliament (St. prp.) no. 113, 1971–72: Opprettelse av Statens oljedirektorat og et statlig oljeselskap m.m.Google Scholar
Government report to the Norwegian parliament no. 76 (St. meld. nr. 76) 1970–71, Undersøkelse etter og utvinning av undersjøiske naturforekomster på den norske kontinentalsokkel m.mGoogle Scholar
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