The Emergence of Private Authority in the Oil Industry: the Case of Oil Concession Agreements

Abstract

This thesis situates itself in a context that has become a feature of the globalizing world – the emergence of private authority in global governance and the transformation of the power of the state. As the title suggested, the thesis investigates the emergence of private authority in the oil industry by concentrating on the negotiation and implementation of various oil concession agreements of the past in the period between 1900 and 1960. The analysis employs qualitative methodologies, taking experiences of private actors through archival research using case study concentrating on four countries in the Middle East region, namely, Saudi Arabia, Kuwait, Iran and Iraq. The examination of each case focuses on the oil concession agreement that is pivotal to the structural transition of oil industry, hence power/authority transition. The relationship between public and private authorities involved in the case study is the key to the emergence of private authority. The public-private interaction that allows this relationship to establish and develop is also important to the process. Other factors such as inter-firm cooperation; resources in the form of finance and expertise; and political, economic and social climate also contribute to the process which allow private authority to emerge and operate. Despite the fact that identifying these factors permits us to gain better understanding of the concept of private authority, it is still difficult to pinpoint the exact moment it emerges and the clear location it operates. Private actors today play a major role in global governance, affecting the political, economic and social development both at national and international level, thus, the exact of its route and the true impact of its existence need to be clarified. The findings from the research have great relevance to the theorizing of the concept of private authority. It provides powerful insights into debates regarding the emergence and operation of private authority both in historical and contemporary perspective. The findings also give us better knowledge of the nature of private authority in term of its various forms and functions.