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Begin New Search Topic Energy Policy Content Type Policy Brief Publishing Institution Natural Resource Governance Institute Publication Year within 10 Years

1. National Oil Companies and Energy Transition in the Middle East and North Africa

Author:
Laury Haytayan, Patrick Heller, David Manley, and Ben Potter
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
As the world looks toward an energy future that is less reliant on fossil fuels, governments in the Middle East and North Africa (MENA) region must adapt. The petroleum sector is a major employer in the region, the primary source of fiscal revenue, the dominant generator of exports and the source of energy that powers economies. With the pace of energy transition uncertain, a growing number of oil companies are revising downward their long-term assumptions about fossil fuel consumption and prices, and private capital has been progressively moving away from the sector. This transition creates opportunities for cleaner and more reliable energy for citizens in the MENA, a region rich in renewable energy potential. MENA governments and their national oil companies (NOCs) recognize the need for adaptation. Several countries have launched vision statements or reform plans aimed at diversifying NOC portfolios, increasing efficiency and reducing their exposure to market decline. This briefing derives from in-depth research and interviews on the challenges and reform plans of three MENA NOCs (Saudi Aramco, Qatar Petroleum and Algeria’s Sonatrach) and draws out implications for other NOCs in the region. The authors seek to inform the strategies of governments and NOCs on how to manage NOC portfolios and the evolution of state-NOC accountability mechanisms and hope that nongovernmental analysts and civil society organizations will use this briefing as a tool to help understand and scrutinize public reform plans.
Topic:
Energy Policy, Oil, and Natural Resources
Political Geography:
Middle East and North Africa

2. Surplus or Shortage? The Challenge of Setting a Domestic Supply Obligation for Tanzania’s Offshore Gas BRIEFING20 JULY 2021

Author:
David Manley and Thomas Scurfield
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
One of the priorities of Tanzania’s new president is negotiating a way forward for the country’s long-planned offshore gas project. A key issue in this negotiation is the amount of gas that the government will take in the form of a domestic supply obligation (DSO). To increase the country’s energy supply, it wants a larger DSO than the currently agreed amount of around 8.5 percent of reserves. This report analyzes the implications of a larger DSO for meeting Tanzania’s energy needs, for the offshore project and the government revenues it can generate. It builds on previous NRGI analyses by the authors.
Topic:
Energy Policy, Natural Resources, Gas, Regulation, Legislation, Tax Systems, Commodities, and Revenue Management
Political Geography:
Africa and Tanzania

3. Stuck in the Past: Lessons on Emissions for Developing Oil Producers

Author:
David Manley and David Mihalyi
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
As much of the world slowly moves into a low-carbon future, a group of countries are firmly stuck in a fossil-fuel past. These are mainly countries rich in fossil fuel resources. This is not only a problem for the global target to limit the emissions of greenhouse gases, but it puts these countries under a “carbon curse”. Under this curse, people pay more for energy, might be locked out of trading opportunities with countries with carbon taxes, and breath dirtier air. These fossil fuel-rich countries provide a lessons for developing countries with fossil fuels that are still to industrialize. These are countries that still have time to change direction to avoid being stuck in the past, and move into a more prosperous and cleaner future. Key messages Most economies are slowly decarbonizing, but the economies of high-income, fossil fuel-rich countries are not. This is the case whether examining production- or consumption-based emissions. Low-income, fossil fuel-rich countries can learn from the experience of wealthier fossil fuel-rich countries. Remaining on their current path could mean that low-income, fossil fuel-rich countries could face high energy costs, exclusion from export markets, and failure to meet future climate commitments.
Topic:
Climate Change, Energy Policy, Oil, Carbon Tax, and Carbon Emissions
Political Geography:
Global Focus

4. Tying Their Hands? How Petroleum Contract Terms May Limit Governments’ Climate Policy Flexibility

Author:
Nicola Woodroffe
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The pathway to net-zero emissions will be a fraught one for many petroleum-dependent countries. Radical policy action is necessary to decarbonize the global economy , with significant economic implications for countries dependent on oil and gas revenues. The Intergovernmental Panel on Climate Change has warned that global warming will exceed 1.5 and even 2 degrees Celsius without deep emissions cuts. At the same time, the International Energy Agency has proposed a freeze on new development approvals for oil and gas fields from 2021 if we are to limit the global temperature rise to 1.5 degrees Celsius. Current and emerging producers may want to go beyond merely reacting to foreign governments’ or international oil companies’ evolving climate policies – they may seek to proactively decarbonize and build climate resilience in their own petroleum sectors. Yet the long-term contracts governments sign with companies for petroleum exploration and production may significantly limit this flexibility for decades. Have producer countries begun to modify petroleum contract terms in response to climate change and energy transition risks? To explore this, the author of this briefing reviewed 34 contracts and model contracts from 11 countries, signed or issued since the Paris Agreement. This review focused on stabilization, arbitration, and force majeure clauses. The contracts reviewed do not yet indicate a shift in these clauses to respond to climate change risks, and the need for government flexibility to take climate policy action. Producer governments should reconsider traditional contract clauses and assess and adapt their petroleum sector legal framework to address energy transition and climate change risks.
Topic:
Climate Change, Energy Policy, Government, and Transparency
Political Geography:
Global Focus

5. National Oil Companies and Climate Change: Insights for Advocates

Author:
Patrick Heller, Greg Muttitt, Alexandra Gillies, Paasha Mahdavi, David Manley, Valerie Marcel, Joachim Roth, Lourdes Melgar, Francisco J. Monaldi, and Angelo Picciariello
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
National oil companies are the “hidden half” of the global oil industry. The authors of this briefing write that climate and development advocates who seek to reduce fossil fuel supply and promote sustainable economies must engage with these state-owned companies, many of which are based in countries with high levels of poverty.
Topic:
Climate Change, Energy Policy, Oil, Natural Resources, and State-Owned Enterprises
Political Geography:
Global Focus

6. Coronavirus, Oil and Latin America: The Urgency of Economic Diversification and Energy Transition

Author:
Carlos Monge
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Key messages: Companies are demanding temporary bailouts, requesting that governments subsidize them with breakeven prices over sale prices, and allow them to postpone tax and royalty payments and agreed investments. Such actions may be necessary to preserve jobs and ensure domestic energy supplies. Governments are considering lowering social and environmental standards, fast tracking procedures and providing long-term subsidies to support ongoing projects and to attract new investments. For an industry already facing its twilight, these actions are not justified. Governments must urgently move ahead with economic diversification and energy transitions to ensure the availability of jobs, energy and fiscal incomes that the oil industry currently provides.
Topic:
Energy Policy, Oil, Diversification, Renewable Energy, Coronavirus, and COVID-19
Political Geography:
Colombia, South America, Central America, Mexico, and Peru

7. Coronavirus, Mining and Latin America: A Baseless “Race to the Bottom”

Author:
Carlos Monge
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Mining companies are asking governments to make consultation and environmental procedures more flexible to mitigate production risks and attract new investments. However, there is no real reason to slacken regulations in order to promote mining in Latin America. Conversely, the region should strengthen these standards to prepare for a possible new mining cycle fueled by the transition to clean energy. In the event of a new mining cycle, governments should safeguard against overreliance on commodity exports and the use of fossil fuels. Instead, governments and companies should explore ways in which the mining sector can contribute to economic diversifications and energy transitions. Demand and prices for minerals produced in the region have fallen as a result of the global recession. Logistical issues resultant from pandemic-related lockdowns have slowed internal production. Consequently, mining taxes and royalties will likely fall this year. Prices have not fallen enough to threaten the commercial feasibility of current projects, the global investment budget remains robust, and the region is attractive to mining investors. Furthermore, the global transition to clean and sustainable energies will most probably increase the demand and prices for the critical minerals (copper, silver, lithium and others) produced in the region.
Topic:
Energy Policy, Commodities, Mining, Coronavirus, and COVID-19
Political Geography:
Latin America

8. Financing Options for the Ugandan National Oil Company

Author:
Thomas Lassourd
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
This briefing note is an effort to help frame the main tradeoffs and assess four potential funding models for the newly created national oil company of Uganda. It is based on NRGI’s international experience and understanding of the local context. Uganda’s national oil company will have a critical role. It is expected to professionally manage all aspects of state participation in the sector and act as a center of expertise for the government. It is also expected to play a strong role as a minority equity partner in the USD 4.3 billion Hoima refinery project and potentially in a USD 4 billion export pipeline. Under all possible funding options, strong audit and reporting processes should be required, as well as parliamentary oversight. The chosen funding model will also need to balance the needs of the national oil company with national development needs in Uganda. Funding model options can be adapted to meet Uganda’s unique situation. NRGI is at the disposal of Uganda’s government and parliament to discuss these models.
Topic:
Development, Energy Policy, Oil, Natural Resources, and Governance
Political Geography:
Uganda and Africa