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Scholarship on the political economy of natural resources in the Global South has often relied on the concept of the “resource curse” to explain the negative features of extractive economies and their alleged tendency to promote rent capture at the expense of national sovereignty and development. Such theories link the behavior of social actors to an excess of “unearned income,” with little reference to the concrete forms of political and cultural mediation that reproduce this structure of growth. This article explores the role of the devil symbol in populist discourse in Venezuela and how this spectral figure comes to mediate subaltern consciousness. Tracing the origins of this image to colonialism and efforts to grasp the dynamics of the modern petrostate, the analysis shows how use of this symbol to mediate the forecast transition from a rentier to a productive economy has given workers in a state enterprise a potent set of signs to articulate opposition to unjust labor conditions. Venezuelan leaders have deployed figures drawn from local folklore to divide society into two competing power blocs. Yet, while these discourses are effective at forging coalitions and justifying specific reallocations of oil wealth, they do not obviate the tensions of this transition, and a counternarrative using these same figures has arisen in response. The article concludes with an analysis of parallels between global theories of the resource curse and local Venezuelan iterations of this discourse as well as a discussion of the role of translation in theories of culture and modernity.
The great discoveries of the past two and a half centuries – the steam engine, electromagnetic induction, the electric power grid, the internal combustion engine, the transistor, personal computers, the internet – change not just the way we live, but an entire global economy. Nothing, however, created more change or made more millionaires than one discovery. By the early 1900s, the iron carriage had made its appearance on the streets of our booming cities, but a new kind of engine and a new kind of fuel would be needed to make a “gasmobile” run. Oil.
Despite the many advances, however, since the start of the petroleum era, ecosystems are failing because of increased industrialization, combustion pollution, and greenhouse gases. Are we seeing the beginning of the end, the twilight of our most gleaming idol? Is the next great global energy transition being forced upon us? In the words of Ahmed Zaki Yamani, Saudi oil minister from 1962 to 1986, “the Stone Age did not end for lack of stone and the Oil Age will end long before the world runs out of oil.” Alas, short-term profits and share price is still being valued over environmental degradation and global warming.
Chapter 18 of Earthopolis: A Biography of Our Urban Planet explores cities’ role as creators and creations of totalitarian states on the left and the right and the march toward humanity’s most horrific acts of self-destruction and “urbicide” during World War II. The chapter begins with a section on the promising urban gender, sexual, and racial revolutions of the 1920s that opened up new urban spaces of pleasure and expression for many people who had lived far more circumscribed roles before. Nonetheless, totalitarians found ways to leverage many different urban spaces into power. They rebuilt cities to strengthen their grip, then to arm themselves for a war of annihilation. New facilities devoted to drilling for petroleum, transporting it, and refining it became central to the course of the war. Acts of mass imprisonment, torture, and racial extermination led to the construction of some of world history’s most horrific built spaces. Meanwhile, the aerial bombing of cities and civilian neighborhoods became routine, culminating in fire bombings and the nuclear explosions in Hiroshima and Nagasaki.
In 2011, lawyers for the Chevron Corporation filed a civil suit against an aqueous geochemist under federal racketeering and corruption laws. They claimed that the geochemist and her colleagues had ghostwritten significant portions of a report attributed to a court-appointed expert in Ecuador, although the accusation was subsequently withdrawn. The original case addressed the environmental impact of Chevron’s operations in lowland Ecuador, the subject of a $9 billion judgment against the oil company. This article treats legal transcripts and depositions as examples of life writing to examine the contribution of experts to environmental litigation. It adds to recent scholarship on the instability of scientific authorship by comparing different forms of ghostwriting. Whereas the pharmaceutical industry employs ghostwriters to conceal the potentially harmful consequences of its products, the scientists contributing to the case against Chevron sought to make the company’s environmental impacts visible. The company undermined confidence in the legal proceedings in Ecuador by criticizing the experts for the plaintiffs rather than their data, preventing people whose lives and livelihoods have been affected by oil contamination from collecting the judgment against Chevron. This corporate strategy may have a chilling effect on the willingness of environmental scientists and other expert witnesses to provide evidence against powerful corporations. There is a need for better accounting of scientific research undertaken in support of environmental litigation, especially given the high stakes of legal contests like this one, in which corporate fortunes, human lives, and the fate of the environment are contingent on their technical expertise.
This chapter rereads The Great Gatsby as a novel deeply concerned with the temptations and dangers of fossil fuel culture. After providing an overview of the contemporaneous Teapot Dome Scandal, Stecopoulos examines Fitzgerald’s subtle linkage of the novel’s more precarious characters with petro-modernity. By analyzing figural accounts of Gatsby as oil detector, Myrtle Wilson as gusher, and George Wilson as depleted energy field, the chapter offers an ecologically oriented account of a classic American novel.
Oil is a metonym for terms in books and articles in diverse disciplines in African studies. Some portray oil as a causal agent that thrusts formerly low-income countries into the highly competitive neoliberal global economy. Others present it according to the oil curse/blessing binary. As a curse, petroleum causes dysfunctional and costly behavior. But increased revenues from oil just as certainly result in concrete improvements demonstrating a resource blessing. Heilbrunn uses case materials to explore environmental degradation, oil theft, community-company relations, post-conflict reconstruction, local content in contracts, and corruption. These key concepts form a basis for the keyword/concept essay on oil in Africa.
Local Content and Sustainable Development in Global Energy Markets analyses the topical and contentious issue of the critical intersections between local content requirements (LCRs) and the implementation of sustainable development treaties in global energy markets including Africa, Asia, Europe, North America, Latin America, South America, Australasia and the Middle East While LCRs generally aim to boost domestic value creation and economic growth, inappropriately designed LCRs could produce negative social, human rights and environmental outcomes, and a misalignment of a country's fiscal policies and global sustainable development goals. These unintended outcomes may ultimately serve as disincentive to foreign participation in a country's energy market. This book outlines the guiding principles of a sustainable and rights-based approach – focusing on transparency, accountability, gender justice and other human rights issues – to the design, application and implementation of LCRs in global energy markets to avoid misalignments.
With much fanfare, Ghana's Jubilee Oil Field was discovered in 2007 and began producing oil in 2010. In the six coastal districts nearest the offshore fields, expectations of oil-backed development have been raised. However, there is growing concern over what locals perceive to be negative impacts of oil and gas production. Based on field research conducted in 2010 and 2015 in the same communities in each district, this paper presents a longitudinal study of the impacts (real and perceived) of oil and gas production in Ghana. With few identifiable benefits beyond corporate social responsibility projects often disconnected from local development priorities, communities are growing angrier at their loss of livelihoods, increased social ills and dispossession from land and ocean. Assuming that others must be benefiting from the petroleum resources being extracted near their communities, there is growing frustration. High expectations, real and perceived grievances, and increasing social fragmentation threaten to lead to conflict and underdevelopment.
What was the environmental impact of the booming petroleum industry? It looked minimal from the vantage point of most political observers. The exception was that of the environmentalists who pointed out that the oil would generate airborne acid rain that was damaging to the environment. The question of how to deal with acid rain turned into a formative environmental debate as the underlying question addressed the future of an oil-driven industrialization of Norway. How one viewed the petroleum industry was dependant upon which rationality and whose knowledge one trusted in visioning the best future for the nation and the world. The work of the geologist Ivan Th. Rosenqvist undermined the efforts of the Minister of the Environment Gro Harlem Brundtland to halt European industrial pollution of sulfuric acid, some of which ended up as acid rain in Norway. In the 1970s, his research made him an anti-environmentalist in the eyes of his opponents. Yet he claimed he cared for nature and that his scientific research was in the world’s best interest. His alleged anti-environmentalism should be understood within the context of competing socialist styles of reasoning as well as the disunities of sciences.
This chapter describes the operational nationalization dataset in detail. The chapter begins by defining state-owned enterprises (SOEs) with de facto control of operations as a measure of operational nationalization. After describing how operational nationalization is measured, the chapter explains the coding and construction of the 187-country, 116-year dataset of national oil companies (NOCs) based on primary and secondary sources of each country’s petroleum history. Only 70 of these countries are major producers, but for completeness the full sample includes all sovereign countries with populations greater than 200,000 in 2000. This chapter includes several brief examples of NOC varieties, cases of NOC reforms and privatizations over time, as well as varieties of nationalization in nonoil sectors like copper, coal, zinc, cobalt, and lithium. The chapter also discusses how the database compares with existing nationalization datasets.
This concluding chapter discusses the scholarly and policy implications of the book’s findings. Leaders that pursue predatory and opportunistic behavior are not as likely to fail as the conventional wisdom suggests; these leaders have little option to survive in power other than by seizing assets instead of building growth-enhancing institutions. This chapter then provides a policy roadmap to how extractive resources will be managed in the future for oil and for commodities that have thus far avoided nationalization. The examination of the possibility of future oil nationalizations in Lebanon and Guyana will be particularly relevant for states considering their ownership options in light of new discoveries. Rare-earth minerals and advanced materials involved in the production of renewable energy facilities and energy storage--namely cobalt, lithium, and palladium--have largely been produced by private firms. If and when the production of these materials is nationalized, it will have profound impacts not only on the leaders of producing countries, but also on the world that relies upon these resources to sustain the coming industrial revolution in clean energy.
Chapter four empirically assess the veracity of the argument on why leaders nationalize their oil sectors and establish operational national oil companies (NOCs). To test hypotheses derived from the theory’s implications, this chapter presents the findings from a method of statistical analysis that combines the cross-national NOC dataset with information elicited from structured interviews with oil experts. This technique -- Bayesian statistics -- allows for a holistic analysis of the determinants of nationalization that incorporates both quantitative and qualitative evidence on NOC formation. The results show the importance of information diffusion and perceptions of leader survival in the decision to nationalize the oil sector. The chapter then offers a case comparison of Iran and Saudi Arabia in the 1940s to show how information diffusion to a strong regime led to maintaining private ownership in Saudi Arabia in 1949, while knowledge about revenue sharing diffused to a weak regime led to nationalization in Iran in 1951.
For rulers whose territories are blessed with extractive resources - such as petroleum, metals, and minerals that will power the clean energy transition - converting natural wealth into fiscal wealth is key. Squandering the opportunity to secure these revenues will guarantee short tenures, while capitalizing on windfalls and managing the resulting wealth will fortify the foundations of enduring rule. This book argues that leaders nationalize extractive resources to extend the duration of their power. By taking control of the means of production and establishing state-owned enterprises, leaders capture revenues that might otherwise flow to private firms, and use this increased capital to secure political support. Using a combination of case studies and cross-national statistical analysis with novel techniques, Mahdavi sketches the contours of a crucial political gamble: nationalize and reap immediate gains while risking future prosperity, or maintain private operations, thereby passing on revenue windfalls but securing long-term fiscal streams.
This article explores how the current corporate governance codes in Nigeria affect corporations in the extractives sector. It focuses on the idea of corporate sustainability as the root for improving firms’ behaviour, incorporating development and social justice perspectives. Since the discovery of oil in Nigeria, several laws have been enacted to control the impact of oil exploration on the environment. Despite these efforts, environmental degradation continues to persist in parts of the country where natural resources are exploited. Mandatory corporate governance codes backed by sustainability driven corporate laws could ensure that companies minimize adverse effects of their activities on affected stakeholders.
The map of the American petroleum industry shifted rapidly from the Northeast to the Southwest at the turn of the twentieth century when spectacular gushers were struck first in Texas and soon in California, Kansas, and Oklahoma. The flood of small and mid-size oil producers broke the hold that the Standard Oil Company had for decades held on the industry. Competition defeated monopoly. Or so the conventional story goes. This article offers a more complicated narrative by focusing on conflicts between Standard Oil and independent producers in the booming towns of southeast Kansas in 1904 and 1905. In those years, John D. Rockefeller's firm established a monopoly through technologies of distribution and distillation and the production of scientific knowledge and opaque classifications of commodities. Oil producers revolted. A reform movement turned to the rhetoric and policy ideas of Populism as it sought to use state power to challenge the stranglehold of the “octopus.” This article explores the previously unrecognized significance of this movement by showing how the Kansas oil war contributed to the breakup of Standard Oil by the Supreme Court in 1911 and constituted one of the bottom-up sources for the reconstruction of American capitalism.
Although technological learning is indispensable for economic transformation in developing countries, recent research on industrial policy both lacks consensus regarding policy models and engages in little long-term analysis of policy impacts. This study contributes to this literature through a controlled case comparison of the varied addition of new and unique functional capacities in the Mexican and Brazilian automotive and petroleum industries from 1975 to 2000. It offers a dynamic industrial policy perspective that underscores the explanatory role of alternating state- and market-led industrial policy approaches and their associated cumulative processes of “exploration” and “exploitation” (March (1991)). It also suggests that two background conditions—prior investments in learning and exogenous shocks that undermine the status quo—intervene decisively in the successful sequencing of policy approaches. The study concludes by proposing a framework that recognizes three main learning pathways formed through different configurations of the main independent variable and background conditions. This framework can be deployed as a rough predictive tool to assess how other industries might most effectively increase their technological sophistication.
The Miocene Monterey Formation constitutes a fracture-controlled petroleum reservoir, with intercalated calcareous and fine-grained siliceous rocks serving as both the source and reservoir for oil accumulations. Petroleum is produced from macroscopic fractures, and numerous tar and asphalt seeps at the surface attest to the present-day movement of hydrocarbons through fractures in the Monterey Formation. Many fractures are filled with carbonate (mostly calcite and dolomite), quartz, baryte and anhydrite. These same fractures often contain tar or oil filling openings, and occasionally a thin layer of oil can be seen coating growth surfaces between two generations of vein-filling minerals.
Evidence for migration of fluids through these fractures in the geological past is provided by aqueous and petroleum fluid inclusions contained within vein-filling minerals. Vein-filling dolomite from Jalama Beach contains three different types of primary petroleum inclusions (based on fluorescence characteristics)—indicating that oils with significantly different API gravities flowed through the fractures. Petrographic and microthermometric analyses of oil and coexisting aqueous inclusions indicate that the fracture-filling minerals precipitated from aqueous solutions of seawater salinity at ∼75–100°C, and that oil was introduced into the fracture system episodically during mineral growth. A sample from the Lion's Head area consists of early calcite and late quartz, both of which contain aqueous inclusions with seawater salinity. Inclusions in quartz homogenize at slightly higher temperatures than those in calcite. These data are consistent with calcite deposition during an early heating event, followed by quartz deposition during cooling. No petroleum inclusions were observed in the Lion's Head sample.