The End of the Trend: Limited Opportunities to Slow Reintegration by Tom Stewart-Gordon

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01/27/2010

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This article looks at the factors that encouraged oil producing countries, particularly members of OPEC, to engage in downstream operations. These... (More) This article looks at the factors that encouraged oil producing countries, particularly members of OPEC, to engage in downstream operations. These factors included the desire to maximize future revenues, gaining access to a larger part of the value chain, and a surplus of oil revenues. The author presents several examples of the vertical reintegration in the world oil industry as producing countries partnered with international oil companies to expand their refining and marketing activities. The case of Kuwait and the Kuwait Petroleum Corporation (KPC) is examined in depth. (This paper by Tom Stewart-Gordon, “The End of the Trend: Limited Opportunities to Slow Reintegration,” was published as Occasional Paper 6. Boulder, Colorado: The International Research Center for Energy and Economic Development, 1989. ISBN 0-918714-17-6). (Less)