Government and the Multinational Oil Companies

Abstract

Little of the British Government’s offshore supplies policy can be understood without reference to the relationship which has evolved between the oil companies working in the North Sea and the Government. As the principal purchasers of the offshore supply industry’s goods and services, the oil companies play a crucial part in determining the nature and pace of the industry’s development. In consequence, both the Conservatives and Labour have attempted to influence the pattern of oil company purchasing operations through the use of an administrative device called ‘auditing’. The implementation and significance of the auditing procedure are discussed in full in the next chapter, but that discussion presupposes some understanding of the characteristics of the oil companies working in the North Sea. In particular, this chapter focuses upon the multinational status of these companies and the special problems which this has created for the Government in implementing its offshore supplies policy.