A model of the operation and development of a National Oil Company

Hartley, Peter; Medlock, Kenneth B.

doi:10.1016/j.eneco.2007.12.017

Cited by 103 publications

(57 citation statements)

References 25 publications

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“…The Saudi motivation might be either to increase the joint profits of OPEC producers or domestic and international political issues. We conclude that, consistent with the prevailing literature, neither cartel, oligopoly nor perfect competition can perfectly capture and explain the behaviour of OPEC and other producers in this framework; our results support the proposition by Hartley and Medlock (2008) that the assumption of profit maximization ignores important aspects of the NOCs' behaviour.…”

Section: A Numerical Applicationsupporting

confidence: 79%

“…The players in the oil market can be of a very different nature: one can distinguish international oil companies and national oil companies (NOCs), with the latter being the prevailing company type in most OPEC countries. NOCs can be expected to perform a number of activities that are not directly related to oil production, such as providing fuel subsidies or social welfare programs (Hartley and Medlock, 2008). In general, the literature is inconclusive on which economic theory best describes reality; the prevailing conclusion is that OPEC does push prices above marginal cost but is not a classical cartel.…”

Section: Introductionmentioning

confidence: 95%

“…The model could be changed in such a way that NOCs are optimizing a social welfare function including the factors brought forward by Hartley and Medlock (2008), where employment, spending on social infrastructure and remaining reserves are also included, in addition to profits.…”

Section: A Numerical Applicationmentioning

confidence: 99%

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A Model for the Global Crude Oil Market Using a Multi-Pool MCP Approach

Huppmann

Holz

2009

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. With these two model approaches, we compute the equilibrium solutions for several market power scenarios to investigate whether the multi-pool approach may be better suited than the bilateral trade model to describe the crude oil market. The pool-based approach yields, in general, results closer to observed quantities and prices, with the best fit obtained by the scenario of an OPEC oligopoly. We conclude that the price indices indeed are important on the global crude market in determining the prices and flows, and that OPEC effectively exerts market power, but in a non-cooperative way. Terms of use: Documents in

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Section: A Numerical Applicationsupporting

confidence: 79%

Section: Introductionmentioning

confidence: 95%

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A Model for the Global Crude Oil Market Using a Multi-Pool MCP Approach

Huppmann

Holz

2009

SSRN Journal

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“…The results for each parameter setting are found in table 5. We find that the less elastic the supply, the larger the decline in world oil prices.…”

Section: Alternative Supply Elasticitiesmentioning

confidence: 61%

“…Several IMF working papers, such as Coady et al (2006) and , have studied the distributional impacts of removing fuel subsidies on household expenditures by using social accounting matrix and input-output models. Hartley and Medlock (2008) studied the behavior of National Oil Companies (NOC's) and showed that NOC's are inefficient compared to private companies and having the NOC's subsidize domestic customers increased this inefficiency. Using a small open-economy model, Plante (2014) showed that sizable subsidies could introduce significant distortions into the country that put them in place.…”

Section: Introductionmentioning

confidence: 99%

Fuel Subsidies, the Oil Market and the World Economy

Balke¹,

Plante²,

Yücel³

2015

The Energy Journal

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This paper studies the effects of oil producing countries' fuel subsidies on the oil market and the world economy. We identify 24 oil producing countries with fuel subsidies where retail fuel prices are about 34 percent of the world price. We construct a two-country model where one country represents the oil-exporting subsidizers and the second the oil-importing bloc, and calibrate the model to match recent data. We find that the removal of subsidies would reduce the world price of oil by six percent. The removal of subsidies is unambiguously welfare enhancing for the oil-importing countries. Welfare can also improve in the oil-exporting countries, depending upon the extent to which they are net exporters of oil and on oil supply and demand elasticities.

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National Oil Companies: Ensuring Benefits and Avoiding Systemic Risks

McPherson¹

2013

The Handbook of Global Energy Policy

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A model of the operation and development of a National Oil Company

Cited by 103 publications

References 25 publications

A Model for the Global Crude Oil Market Using a Multi-Pool MCP Approach

A Model for the Global Crude Oil Market Using a Multi-Pool MCP Approach

Fuel Subsidies, the Oil Market and the World Economy

National Oil Companies: Ensuring Benefits and Avoiding Systemic Risks

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