Nationalized Oil and Gas – Security Implications

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Authors
  1. Johnson, P.F.
Corporate Authors
Defence R&D Canada - Centre for Operational Research and Analysis, Ottawa ON (CAN)
Abstract
This Technical Memorandum examines the energy security implications of nationalized oil and gas companies. While there is a perception that the threat to oil import dependent states posed by the countries that nationalize these resources is an embargo, the likelyhood of this occurring is overstated. Moreover, the impact of an imbargo, particularly an oil embargo such as the OPEC embargo of the United States in 1973-1974, is not likely to be as detrimental as many analysts think. Yet, nationalization of oil and gas assets does negatively impact international security by contributing to existing political tensions in some countries, by limiting the scope for the international community to positively influence the behaviour of some states, and by funding destablizing arms programs, terrorists, and insurgents.

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Report Number
DRDC-CORA-TM-2006-030 — Technical Memorandum
Date of publication
01 Sep 2006
Number of Pages
31
DSTKIM No
CA028420
CANDIS No
526617
Format(s):
Electronic Document(PDF)

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