Globalization and the World Oil Industry

Globalization and the World Oil Industry explains the dramatic transformation to the world petroleum industry in the 20th century from its modest beginnings as a source of illumination to its status today as the driving force behind the world economy. The book places the development of the industry in historical perspective, examining the people, ideas, inventions, and institutions - especially the rise of the multinational oil company (MNOC) - that helped shape this multibillion dollar industry.

Given the MNOCs access to greater sources of investment capital, domination of transportation networks and refining facilities, the "Seven Sisters" established an industry with global reach and influence. Subsidiaries, established by larger MNOCs, facilitated the transfer of technologies and skills and carefully managed the resource. But MNOCs saw their power and influence wane with the rise of OPEC and beginning in the 1970s, the global oil industry began a dramatic transformation that reshaped industry and presents new challenges in the 21st century. With the proliferation of state-owned oil companies and the evolution of MNOCs wrought by globalization, some analysts question the ability of the modern oil industry to provide enough energy to sustain global economic prosperity given increasing demand from the developing world, environmental concerns, shortages of skilled and educated works, and heightened competition for investment dollars.