Ownership of Resources, Rule of Capture and Government Approvals

The issue of the ownership and control of petroleum is inherently connected with the sovereignty of states, with the control providing the resource-rich states with a voice and leverage in the international dialogues. There are several theories and options for the ownership, control and management of petroleum resources around the world. Absolute ownership grants unrestrained control over the use and sale of petroleum, in contrast, Qualified ownership is only absolute once the oil is brought to the surface land. Similarly, the rule of capture grants ownership of extraction to the land owner, embodying the principle of non-liability for drainage. Government approvals however stand on the dominal control system, exercising absolute control and authority over its resources. However, due to the fugacious nature of petroleum, its options of control and management pose much complexity in determining a fitting modus operandi.