Oil and politics in Latin America: nationalist movements and state companies.

Abstract

Considers the international oil system and its impact upon Latin America. Traces changes that have taken place from an essentially imperialist world (prior to 1929) through transformation brought about by the depression, World War II and the post-war environment until the oil market revolution of the 1970s. Discusses ten oil nationalisations in nine Latin American countries between the 1920s and the 1970s. Although international factors are not ignored, focuses on domestic political considerations. Argues that most cases of nationalisation can best be understood as resulting from a combination of political pressure from the urban middle class (including the military) and the perceived economic weakness of the oil companies, themselves. Considers the performance of six key state oil companies: Pemex, Petrobras, YPF, YPFB, Petroven and Petroperu. Concludes that the more successful state companies are based in countries where the political climate is essentially sympathetic towards them and where operating criteria, while not purely commercial, are based on a degree of respect for market forces.-after Publisher