Developing companies that have an abundance of oil resources appear to be cursed due – Get help from top-rated tutors 2024

Developing companies that have an abundance of oil resources appear  to be cursed due to the abundance. They use the oil for themselves to  push their growth and development forward yet are expected to use it in a  smart way as well as share it with the rest of the world. They have two  focuses, helping their country develop and grow and improving their  economy by exporting the extra oil resources. As the countries continue  to grow, their domestic demand for energy increases, which in turn  decreases their export of natural resources (Bradshaw, 2014, p. 146).  This in turn can ruin their political relationships with other  countries, as they may not be able to meet the supply demands with the  countries in which they have agreements. Their dilemma will eventually  come to make the decision of supporting the growth and development of  their countries of maintaining political relationships.

          Foreign actors play a role in these decisions, as they are  the ones buying or trading from these countries. Foreign actors have the  chance of offering more money in order to get the resources from the  developing countries or banding together to boycott those countries.  Though the developing countries have the right to sell or keep the  natural resources, they still need the financial income from the foreign  actors in order to help support their growth. Foreign actors also play a  part in the politics of these developing countries as they may  encourage the countries to sell to them versus sell to others. They can  develop political relationships that may include other foreign actors or  exclude them. Oil majors are interesting as they can develop agreements  where they receive the oil from the developing countries in order to  sell it to the other countries, thus creating a dependence on them and  forming a “middle man”.

Bradshaw, M. (2014). Global Energy Dilemmas: Energy Security, Globalization, and Climate Change. Cambridge, UK: Polity Press.