Political and Investment Risk in the International Oil and Gas Industry

(Hardback)

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Description

This book examines the financial, legal and institutional strategies available to the international oil and gas industry to manage political and investment risk. The financial techniques for mitigating and allocating risk include corporate finance, joint ventures, and project finance. The legal techniques include production sharing agreements, profit sharing agreements, service contracts, bilateral investment treaties, and multilateral investment treaties. The institutional techniques include domestic courts, national constitutions, international arbitral tribunals, governmental and non-governmental regulatory agencies, alliances and energy diplomacy. This book traces the historical development of these techniques and their application in practice. The effectiveness with which companies manage political and investment risk is important for the financial sustainability of individual firms and the industry as whole. The real and perceived level of risk affects the level of exploration expenditures and therefore the balance between supply and demand, and the price of oil and natural gas. The search for a secure supply of oil and gas affects the political, military, and economic relations between countries. Consequently, every developed and developing country has placed energy policy at or near the top of its national priorities.

Reviews

With first-hand knowledge and a true scholars deep understanding, Steve Mucci explains how oil companies navigate churning markets and volatile governments across the world. Powerful yet vulnerable, these companies must employ a range of tools to mitigate economic, financial and political risks. Muccis systematic analysis helps both practitioners and researchers better understand an industry that is a vital nerve center for the global economy. -- David Brian Robertson, University of Missouri, St. Louis
Professor Muccis Political and Investment Risk in the International Oil and Gas Industry combines the experience of a long-time industry insider with a sophisticated theoretical understanding of the issues surrounding international investment. This perceptive and deeply researched work documents the rise, fall, and rise of expropriations in the oil and gas industry and examines 63 investment arbitrations from 1996 to 2015. The book will be of great value to academics, practitioners, and policymakers alike, and I highly recommend it. -- Kenneth P. Thomas, University of Missouri

Author Bio

Steven A. Mucci teaches business at the College of St. Benedict and St. Johns University.