, Volume 20, Issue 5, pp 211–216 | Cite as

Vertical integration by oil-exporting countries

  • Horst Siebert
  • Michael Rauscher
Articles Opec


Most oil-producing countries have now nationalised their oil reserves and are pursuing their own pricing and marketing policies; in recent years some of them have attempted to extend their influence over the oil market by undertaking processing activities downstream from oil production. What motives underlie this strategy of vertical integration? What is its economic justification? What effects will it have on oil-importing countries?


Petroleum Product Vertical Integration OPEC Country Refining Capacity Marketing Policy 
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  1. 1.
    See M. Quinlan: World Survey, Chemicals: Profits Continue to Decline, in: Petroleum Economist, No. 50, 1983, pp. 261–263.Google Scholar
  2. 2.
    For a good synopsis, see R. D. Blair, D. L. Kaserman: Law and Economics of Vertical Integration and Control, New York and London 1983; M. Casson: The Theory of Vertical Integration: A Survey and Synthesis, Journal of Economic Studies, No. 11, 1984, pp. 3–43.Google Scholar
  3. 3.
    With regard to the transaction cost approach, see O. E. Williamson: Assessing Vertical Market Restrictions: Antitrust Ramifications of the Transaction Cost Approach, in: University of Pennsylvania Law Review, No. 127, 1979, pp. 1479–1496.Google Scholar
  4. 4.
    Cf. H. Razavi, F. Fesharaki: OPEC's Push into Refining: Dilemma of Interactions between Crude and Product Markets, in: Energy Policy, No. 12, 1984, pp. 125–134.Google Scholar
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    H. Siebert: Economics of the Resource-Exporting Country, Greenwich (Conn.) 1985.Google Scholar
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    W. Isard: Methods of Regional Analysis: An Introduction to Regional Science, Cambridge 1960, pp. 375 f.Google Scholar
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    Cf. M. Quinlan, op. cit., World Survey, Chemicals: Profits Continue to Decline, in: Petroleum Economist, No. 50, 1983, pp. 261.Google Scholar
  8. 8.
    With regard to the following remarks, see F. Fesharaki and D. Isaak: OPEC and the World Refining Crisis, Economist Intelligence Unit Special Report Nr. 168, London 1984; R. Vielvoye: Future Gloomy for Refining Industry in Western Europe, in: Oil and Gas Journal, 18th March 1985, pp. 41–46; V. Baum: West Germany: Oil Industry's Continuing Troubles, in: Petroleum Economist, No. 52, 1985, pp. 125 f.; H. K. Schneider, D. Schmitt, H. J. Schürmann: Daten zur Kosten- und Ertragslage der Mineralölindustrie in der Bundesrepublik Deutschland im Jahre 1984, in: Zeitschrift für Energiewirtschaft, Special Issue 1/1985.Google Scholar

Copyright information

© HWWA and Springer-Verlag 1985

Authors and Affiliations

  • Horst Siebert
    • 1
  • Michael Rauscher
    • 1
  1. 1.University of KonstanzKonstanz

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