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Hidden Giants
Article

Hidden Giants

It’s time for more transparency in the management and governance of national oil companies

David Manley, David Mihalyi and Patrick R.P. Heller
Finance & Development Magazine, 2019
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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

National oil companies (NOCs) play an enormously important role in the world’s major oil-producing states. The future well-being of these nations is inextricably linked to the economic health of these companies. Yet many NOCs are economically inefficient and burdened with debt. As a group of economists from the Natural Resource Governance Institute argues, increased reporting requirements for NOCs would go a long way in making NOCs more accountable and resilient. Public policy makers and oil industry professionals will find the statistics and analysis illuminating.

Take-Aways

  • National oil companies generally have poor transparency related to key indicators such as capital expenditure, employment and debt.
  • NOCs must start investing in renewable energy to ensure their future viability.
  • NOCs’ lack of transparency poses risks to oil-producing countries and their citizens.

About the Authors

David Manley and David Mihalyi are senior economic analysts at the Natural Resource Governance Institute (NRGI). Mihalyi is also a visiting fellow at the Central European University’s School of Public Policy. Patrick R.P. Heller is an adviser at NRGI and a senior visiting fellow at the Center on Law, Energy and Environment at the University of California, Berkeley. 

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