Who benefits from stringent reporting under Section 1504 of the Dodd-Frank Act?
America's top three (3) oil and gas companies - Chevron, ConocoPhillips, and ExxonMobil, are behemoths. In fact, their combined 2019 assets total $670 billion (Global 500). If they were an economy, they'd be the 21st largest in the world.
How much and how dependent?
Natural resources offer host countries the opportunity to translate their assets into sustainable development. Having significant revenues enables governments to fund social services like health and education. But being too dependent on resource revenues also puts them at risk. The volatility of commodity prices can cause extreme shocks to their government spending especially if no systematic measures are in place for such occurrences. Hence it is important for citizens, policymakers, and journalists to ask how much government is making and how dependent are they from the sector.
As oil prices plummet, so will revenues and government transfers of national oil companies (NOCs). Should this go on, some NOCs may face insolvency, debt restructuring, and costly government bailouts.
Hey there! I'm Marco from the Philippines. I write mostly about natural resource governance, open data, and good governance.