Oil and Arab Regional Development.

yegh /f Kamal /i S. /r ed.

• CONTENTSPREFACEviiACKNOWLEDGMENTSixLIST OF TABLES AND MAPSxvABBREVIATIONSxvii1INTRODUCTION1The Significance of the Study3The Arab Oil Industry: A Historical Background9The Approach16Notes to Chapter 117PART I:THE GENERAL SETTING2THE ECONOMIC IMPACT OF THE ARAB OIL INDUSTRY25Historical Background25Organization and Control26The Oil Companies26The Concessionary Agreements27The National Oil Companies: A New Trend32Investment in Oil Industry33Investment in Producing Activities33Investment in Refining Activities36Investment in Transportation Facilities37Investment in Marketing Facilities42xiThe Profitability of Oil Investment42Payments to Governments45Payments to Oil-Producing Countries45Payments to Oil-Transit Countries54Payments for Oil-Refining Activities56Future Limitation of Oil Revenues56Oil-Production Revenues57Transit Oil Revenues60Saudi Arabian Government-Aramco Arbitration of 1958: A Case Study in Retreatism62Notes to Chapter 2673THE SOCIAL IMPACT OF THE ARAB OIL INDUSTRY81Oil Industry and the Dynamics of Social Change: A Background81Oil Industry and Its Labor Force83Recruitment83Training88Labor Mobility92Work, Wages, and Social Benefits94Oil Revenues and the Arab Societies96Social Change at the Regional Level97Social Change at the Local Environmental Level100The Effect of Social Change on Individuals105Notes to Chapter 31094THE PHYSICAL IMPACT OF THE ARAB OIL INDUSTRY115Historical Background115Oil Frontier Communities117Pumping Station Communities117Oil-Gathering Communities: Abqaiq (Saudi Arabia)###8212;A Case Study120Sea Terminal Communities: Marsa el Brega (Libya)###8212;A Case Study122Headquarter Communities: Ahmadi (Kuwait)###8212;A Case Study128Company###8217;s Home Ownership Scheme (HOS)134Oil Revenue and Conspicuous Construction in the Capital City###8212;The Case of Kuwait City: A Critique138xiiPatterns of Development138Housing and Community Planning139Kuwait City: A Saturated Housing Market?143Notes to Chapter 4148PART II:THE MODEL5PARTICIPATION IN OIL INDUSTRY: A WAY FOR INTEGRATION159Negotiation160Negotiation on the Individual Level160Negotiation on the Collective Level: The Case of OPEC.162Nationalization171Sharing-in-Kind177Higher Bidding: A Way to Innovation180The Rules of the Game181The Levels of the Game183The Outcome of the Game: Less Production Versus More Production187Market Analysis for Arab Oil190The Western European Market191The Western Hemisphere Market193The East of Suez Market193The Western Africa Market193Notes to Chapter 51956THE ARAB OIL COMMUNITY205Regionalism in the Arab World206The Middle East Supply Center206The League of Arab States207Emile Bustani Project208Ashraf Lutfi Plan,209The Kuwait Fund for Arab Economic Development (KFAED)211Individual Self-interest in the Oil Community212Regional Adaptation for the Proposed Arab Oil Facilities216Location Analysis for Oil Pipelines217Location Analysis for Refining Facilities224xiiiArab Oil Tankers229Marketing the Community Oil230The Arab Oil Community in Perspective234Capital Formation234The Stages of the Plan237The Community###8217;s Institutions238The New Labor Force241Notes to Chapter 62457THE ARAB COMMON MARKET252The Arab Common Market: A Way Toward Conformity253Motives for Integration Among the Arab Oil-Producing Countries254Motives for Integration Among the Arab Non-Oil-Producing Countries255The Concept and Forms of Economic Integration256The Advantages of a Common Market258An Arab Common Market: A Model261The Structure of the Market262Convertibility and Payment Settlements267Implementation271Allocation Criteria276Evaluation277Conclusion281Notes to Chapter 7284APPENDIXESAStatistical Appendix295BTHE ARAB OIL COMMUNITY: A QUESTIONNAIRE305CTHE ORGANIZATION OF THE PETROLEUM-EXPORTING COUNTRIES309DTHE RECOMMENDATIONS OF THE SIXTH ARAB OIL CONGRESS ON MARCH 13, 1967327BIBLIOGRAPHY333INDEX351ABOUT THE AUTHOR359xiv