Who benefits from oil?

Press, 12 May 1979, Page 17

Who benefits from oil?

Britain’s Oil. By Guy Arnold. Hamish Hamilton, 1978. 388 pp. Illustrations and index. $15.70. (Reviewed by Derrick Mansbridge;

Twenty years ago oil. to the average Briton, was as exciting a subject as gold and diamonds. They were the produce of others; it would be nice if Britain had them, but what was the sense in dreaming? In everyday conversation, oil was simply a fuel for the car — if you could afford a car; or simply a lubricant for a rusty cycle chain. As Guy Arnold says early in this thoroughly researched book, “The British were as prepared to deal with their oil as generally they have been unready for their wars;” and that as late as the mid-1960s if British business was slow off the mark, successive British governments were at fi.-t even more sceptical of the oil opportunities. In effect, this sets the pattern ot Mr Arnold’s argument throughout the book: that governments came into the matter cold, even reluctantly; that they gave away far too much to the prospecting companies and lacked the expertise to deal with the companies: that they gave away oil rights “as though Britain were a gullible sheikdom,” before realising oil’s huge potential as a tax revenue; and that even today Britain has not fully made up its mind whether its oil is seen as a short-term solution to the country’s economic troubles, or is intended to produce long-term policies to provide wealth for the future. Mr Donald is highly sceptical about Government intentions. Britain has come to take her oil for granted, he says; the more the oil is taken for granted as income for solving problems, the less likely it is that long-term planning associated with the oil as a finite asset will take place. He is also scathingly critical of Government’s approach to the oil companies. “In the oil story, too often the power of the companies, the vast sums at stake, and the huge profits override all other considerations. Moreover, governments constantly reveal a feebleness in their dealings with the giant companies and

sometimes appear simply airaid tn exercise their powers to regulate them for the benefit of the national, or international, community as a whole." Mr Donald sees some hope lor the British public in the continuing influence of the British National (Ji) Corporation (8.N.0.C.), the State's finger in the pie. The corporation is under fierce attack from the companies — which Mr Donald sees as a vindication of the corporation. And he is hopeful that 8.N.0.C. will grow in standing and influence, although he is of the opinion the corporation’s powers might be severely clipped if Mrs Thatcher’s Conservative Party wins the General Election. This, he says, is what the oil companies would clearly prefer. The over-all theme in Mr Donald's book is a simple one: in whose interest is the oil being manipulated? Seemingly, the field is narrowed down to two factions: the British people and the oil companies. It is reasonable to suppose from Mr Donald’s examination of the whole case that the companies are winning — if not hands down, then certainly by a prosperous margin