While the role of the state is declining in nearly every sector of world economic activity, in hydrocarbons the pattern is quite different. State-controlled oil companies -- so-called national oil companies (NOCs) -- remain firmly in control over the vast majority of the world's hydrocarbon resources. In some countries where NOCs had been waning in influence as governments adopted rules to encourage investment by private firms-- including the international oil companies (IOCs) -- recent years have seen a resurgence in the roles for state-controlled companies. High energy prices have encouraged governments and NOC managers, alike, to concentrate authority in the hands of state firms -- especially in Russia and Venezuela -- while many countries have shelved plans to open their hydrocarbon sectors. The central role for NOCs seems more secure than ever.

Some NOCs are singular in their control over their home market; others engage in various joint ventures or are exposed to competition. These enterprises differ markedly in the ways they are governed and the tightness of their relationship with government. NOCs also vary in their geological gifts, as some are endowed with prodigious quantities of easy oil while others must work harder and apply highly advanced technologies; some have sought gas, which requires different skills and market orientation than oil, while others stay focused on liquids. We will explore whether these and other factors actually explain the wide variation in the performance of NOCs. We also aim to explain the link between such factors and the business strategies of NOCs, in particular their approaches (and experience) with engaging with outside firms such as IOCs and field service companies.

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Rose Kontak