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Oil Exploration Strategies For Developing Countries

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  • MICHAEL TANZER

Abstract

This paper focuses on the roles of governments of developing countries in the oil exploration area; roles ranging from passive tax collectors to production sharers to full State ownership and control. The historical failure of governments to take full control of this key area is seen as partially due to myths: that only the big international oil companies have the necessary technology and capital and can afford the risk of oil exploration and development. Three case studies showing the large benefits to a developing country from full State control are examined: Mexico, India and Vietnam. It is concluded that only full State control can ensure that the riches of oil can be harnessed for a developing country, and governments are urged to develop greater knowledge both about the international oil industry and their country's potential resources.

Suggested Citation

  • Michael Tanzer, 1978. "Oil Exploration Strategies For Developing Countries," Natural Resources Forum, Blackwell Publishing, vol. 2(4), pages 319-326, July.
    • Handle: RePEc:wly:natres:v:2:y:1978:i:4:p:319-326
    DOI: 10.1111/j.1477-8947.1978.tb00219.x
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