Saturday, February 9, 2008

Oil and Petrotyrants

Two news items from the oil world while I was "out" this week:
1.) Exxon moves to bring Venezuela to court for breech of contract. Big Oil Strikes Back at Petrotyrants. This move pushes against the trend of petrotyrants nationalizing their crude reserves, setting a trend to encourage further development in instable and oil-rich countries like Chad and Angola.
2.) Nigeria demanded that oil companies return to the delta. Oil Firms Ordered to Niger Delta. Many companies fled the area due to increased violence and kidnappings, and the Nigerian government's demonstrated inability to control local insurgents. The government claims it will kick countries out of the country if they refuse to do business in the most dangerous parts. Here we have the inverse of the previous event, with the government attempting to control the investments of international firms.
Overall, it is interesting to note the interaction between governments and corporations, and how they engage in a power struggle as near equals. Where do corporations fit into the Clausewitzian trinity? People? Or is the model of the trinity fundamentally unable to incorporate international business?

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