Quarterly Journal of Governance Knowledge

Quarterly Journal of Governance Knowledge

Examining the dimensions of energy governance, focusing on the oil and gas industry; A case study of Saudi Arabia

Document Type : Policy paper

Authors
Mohammad Bagher Homayoun 1
Mohammadreza Akbari 2
Hamid Heydari 2
Amirhossein Souhankar 3
1 Department of petroleum engineering, Amirkabir University of Technology, Tehran, Iran
2 Department of Petroleum Engineering, Amirkabir University of Technology, Tehran, Iran.
3 Department of Mechanical Engineering, University of Tehran, Tehran, Iran.
10.22034/jokog.2024.201790
Abstract
Among the countries benefiting from natural resources, it can be clearly seen that the level of efficiency of companies, industries and social welfare in each one has noticeable differences compared to others; one of the main causes of this difference is the governance system in these countries. Governance has different dimensions; but energy governance can be considered one of the most sensitive and of course the most effective factors on the economic status of countries.

In the current research, an attempt has been made that comprehensive information on the details of the energy governance of Saudi Arabia, including the history, pillars of governance, the management of the Saudi Arabian National Oil Company (Aramco), the active aspects of corporate governance in Aramco, Development of the value chain of downstream products, the financial relationship of the government with the main companies and other key management and financial data be obtained and discussed using the environmental survey method in addition to inductive analysis.

After that, in this research, the key points of each sector have been calculated and compared with the current frameworks of Iran's oil and gas industry sectors, and finally, with the lessons learned such as the necessity to create transparency in the financial relationship, create transparency in management and corporate governance, moving towards the development of the value chain and vertical integration and the granting of subsidies from the government's share instead of the company's resources comes to an end, which can be used to improve the productivity and improve the governance of the National Iranian Oil Company.
Keywords
Energy governance
energy economy
Value chain
Saudi Aramco Oil Company
Corporate governance
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Quarterly Journal of Governance Knowledge
Volume 2, Issue 3
Summer 2024
Pages 126-150