Issues and Crises Emerging from Managing Natural Resources (Oil and Gas) in the Developing Countries

Abstract

Abstract—Petroleum industry has contributed to rising the economy of the petro-states. It has also negative impacts on the exporting countries. The importance of the subject is that it has to do with all the sectors of governance and includes all aspects of life. The predominant explanation for the reverse outcomes of managing natural resources has enhanced assortative mating. Previous studies have been made on the relationship between oil prices and the economic growth regardless of the later consequences on all the sectors of all oil exporting countries. In this study, qualitative approach is used, depending on the secondary data, also using content analysis method to explore the main negative effects that the developing countries face in all sectors and all aspects due to managing natural resources. That is, 38 studies and books as well as a report from the World Bank related to the issues that are emerged from governance and marketing of the oil and gas were reviewed. In contrast to what has been conducted in previous works, our findings indicate that governance of the natural resources (drilling, producing and exporting) have created many issues and crises in the developing petro-states. Further, the study ends with a conclusion for further study on these issues and crises so that governments make suitable policies on solving or mitigating them..