Yoshie writes:
The article's real beef about nationalized oil is that there is inherent
political pressure on state oil companies to direct their revenues to
social
programs and other state spending rather than to exploration and the
development of new supply which would hold oil prices in check.
Except in the Gulf states, which have no obligation to most of their
populations, that is correct, but political pressures are not
inherent. Till the rise of Chavez, PDVSA, already a state company,
gave great deals to capital. Political pressures have risen in recent
times in an increasing number of countries, however, and while the oil
boom lasts, more countries are likely to see challenges from below
clamoring for more redistribution of oil profits.
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That's true. The pressures aren't "inherent". Like all state institutions,
they need to be recaptured, as you notein PDVSA's case, by reforming
governments and strengthened to serve popular needs. National energy
policies are also influenced by the level of oil prices which transcend
politics and class lines and see even conservative governments raising the
state's profile when oil prices and revenues are high and left-wing
governments making concessions to attract foreign capital when the price
drops.
