the United Arab Emirates(UAE) is one of the world’s major oil-producing countries
the United Arab Emirates(UAE) is one of the world’s major oil-producing countries. A member of the Organization of the Petroleum Exporting Countries(OPEC) and of the Organization of Arab Petroleum Exporting Countries(OAPEC), the UAE has estimated recoverable oil reserves of around 97 billion barrels, of which the emirate of Abu Dhabi alone accounts for around 92 billion barrels In the early years of hydrocarbon exploration and production, Abu Dhabi’s oil industry was dominated by major international oil companies operating under concession agreements with the emirate, as was the case elsewhere in the Middle East region.
The control exercised by these super companies the”Majors,” as they were known was total, leaving host governments with little or no say in decisions relating to the exploitation of their own natural resources.
A number of important events that took place between 1950 and 1970 were to bring about a radical change in the old concession system. The establishment of OPEC in 1960 and the passing of United Nations General Assembly Resolution No. 2158 of 1966 calling for governments to exercise sovereignty over their natura resources, culminated in a trend of”participation’ by governments in activities relating to their oil and gas industries. National Oil Companies(Nocs established by the oil producing states formalized this trend, providing governments with greater control over oil and gas production in their territories. Some stat achieved complete nationalization of their hydrocarbon reserves, and reclaimed gradually the national governments of the Middle East state control over their respective oil and gas industries.