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Changes in the Operational Efficiency of National Oil Companies

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  • Peter R. Hartley
  • Kenneth B. Medlock III

Abstract

Using data on 61 oil companies from 2001-09, we examine the evolution of revenue efficiency of National Oil Companies (NOCs) and shareholder-owned oil companies (SOCs). We find that NOCs generally are less efficient than SOCs, but their efficiency increased faster over the last decade. We also find evidence that partial privatizations increase operational efficiency, and (weaker) evidence that mergers and acquisitions during the decade tended to increase the efficiency of the merging firms. Finally, we find evidence that much of the inefficiency of NOCs is consistent with the hypothesis that government ownership leads to different firm objectives. http://dx.doi.org/10.5547/01956574.34.2.2

Suggested Citation

  • Peter R. Hartley & Kenneth B. Medlock III, 2013. "Changes in the Operational Efficiency of National Oil Companies," The Energy Journal, , vol. 34(2), pages 27-58, April.
    • Handle: RePEc:sae:enejou:v:34:y:2013:i:2:p:27-58
    DOI: 10.5547/01956574.34.2.2
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    2. R. Tasmin & M. H. Muazu & A. H. Nor Aziati & N. L. Zohadi, 2020. "The mediating effect of enterprise risk management implementation on operational excellence in the Malaysian oil and gas sector: a conceptual framework," Future Business Journal, Springer, vol. 6(1), pages 1-6, December.
    3. Cabrales, Sergio & Bautista, Rafael & Benavides, Juan, 2017. "A model to assess the impact of employment policy and subsidized domestic fuel prices on national oil companies," Energy Economics, Elsevier, vol. 68(C), pages 566-578.

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    • F0 - International Economics - - General

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