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State-owned oil and natural gas companies, such as Saudi Aramco, Petróleos de Venezuela and China National Petroleum Corp., own 73 percent of the world's oil reserves and 68 percent of its natural gas. They bankroll governments across the globe. Although national oil companies superficially resemble private-sector companies, they often behave in very different ways.

Oil and Governance: State-Owned Enterprises and the World Energy Supply (Cambridge University Press, 2012), a new book commissioned by Stanford University's Program on Energy and Sustainable Development, explains the variation in performance and strategy for such state-owned enterprises. The book, which Mark Thurber co-edited and contributed to, also provides fresh insights into the future of the oil industry and the politics of the oil-rich countries where national oil companies dominate.

Though national oil companies have often been the subject of case studies, for the first time multiple case studies followed a common research design, which aided the relative ranking of performance and the evaluation of hypotheses about such companies' performance. Interestingly, some of the worst performing of these operations belong to countries quite unfriendly to the United States. Mark will also discuss the industrial structure of the oil industry, and the politics and administration of national oil companies. One result of the dominance of this structure for oil markets is that high prices often lead to lower supplies and low prices lead to increased production -- the opposite response of private companies.

To view seminar video, click here.

This is apart of the Weekly Energy Seminar series managed by the Precourt Institute for Energy and the Woods Institute for the Environment at Stanford.

NVIDIA Auditorium, Jen-Hsun Huang Engineering Center

Program on Energy and Sustainable Development
616 Jane Stanford Way
Encina Hall East, Rm E412
Stanford, CA 94305

(650) 724-9709 (650) 724-1717
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Mark C. Thurber is Associate Director of the Program on Energy and Sustainable Development (PESD) at Stanford University, where he studies and teaches about energy and environmental markets and policy. Dr. Thurber has written and edited books and articles on topics including global fossil fuel markets, climate policy, integration of renewable energy into electricity markets, and provision of energy services to low-income populations.

Dr. Thurber co-edited and contributed to Oil and Governance: State-owned Enterprises and the World Energy Supply  (Cambridge University Press, 2012) and The Global Coal Market: Supplying the Major Fuel for Emerging Economies (Cambridge University Press, 2015). He is the author of Coal (Polity Press, 2019) about why coal has thus far remained the preeminent fuel for electricity generation around the world despite its negative impacts on local air quality and the global climate.

Dr. Thurber teaches a course on energy markets and policy at Stanford, in which he runs a game-based simulation of electricity, carbon, and renewable energy markets. With Dr. Frank Wolak, he also conducts game-based workshops for policymakers and regulators. These workshops explore timely policy topics including how to ensure resource adequacy in a world with very high shares of renewable energy generation.

Dr. Thurber has previous experience working in high-tech industry. From 2003-2005, he was an engineering manager at a plant in Guadalajara, México that manufactured hard disk drive heads. He holds a Ph.D. from Stanford University and a B.S.E. from Princeton University.

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Since opening its doors to the world in 1978, China has pursued a sometimes erratic but reasonably steady course leading to increasing global economic and political interaction. Its interests now extend from Pyongyang to New York and Sydney to Riyadh. U.S. President Barack Obama’s announcement of a new “pivot” toward Asia, recent events on the Korean Peninsula, and China’s upcoming leadership transition provide additional reasons to seek greater understanding of China’s goals and interactions with other nations.

Thomas Fingar, Stanford’s Oksenberg-Rohlen Distinguished Fellow, is leading a new multiphase Shorenstein Asia-Pacific Research Center (Shorenstein APARC) initiative to explore the nuances and complexity of China’s foreign relations and domestic issues. The China and the World research project aims to contextualize and better understand China’s regional and global interactions, both from the perspective of China itself and from that of other countries. Beginning with Northeast Asia, the project will analyze China’s relations region-by-region throughout the world, and will involve experts from Stanford, China, and the regions studied. It kicks off with a Shorenstein APARC-organized workshop held Mar. 19 and 20 at the new Stanford Center at Peking University.

Fingar discusses the development of China’s foreign relations since 1978, and describes the project and workshop’s background.

In the three decades since Deng Xiaoping enacted his 1978 Open Door reforms, what have been the main trends in China’s global engagement?

The general trend since 1978 has been for China to become increasingly active and engaged in a growing number of places around the world. There have been a number of phases to this.

The “honeymoon period” of U.S.-China relations (1979–1989) was a period of essentially no competition to China’s interaction within the U.S.-led world economic system. China concentrated on the OECD countries—especially the United States, Japan, and Western Europe—that had money to invest and willingness to trade.

After the 1989 Tiananmen Square Incident, China’s international options became more constrained as its relations with the developed world plateaued. It began to reach out to the places that would deal with it: Southeast Asia and particularly Africa. This was in part diplomatically motivated, and in part a search for new markets for the low-end goods it was beginning to produce. It was also the beginning of its search for energy.

Around 2000, China transitioned from building a more modern economy towards being one—beginning the era of its “rise.” China’s demand for resources went up, as did its capacity to supply more markets and its ability to invest more of its growing foreign exchange earnings. It became globally active, proclaiming that it had a new, less exploitative model than what the United States and Europe offered.

What Northeast Asia issues do you think China will focus on this year, especially as it plans for a major leadership transition?

North Korea’s stability and China’s growing investments in the DPRK. Beijing is acutely interested in whether Kim Jong Un will prove a viable leader and whether the regime will be able to manage its new challenges. China is concerned about possible North Korean provocations that might trigger responses by South Korea and/or the United States, putting at risk the peaceful regional and international situation China needs for its political and economic development.

The second issue is answering the question: what does the U.S. pivot toward Asia mean? What does it mean in terms of security, economics, and relations with Japan and Korea? China is the largest trading partner for each of these countries. They value it as a market, and as a source of resources. Yet they also worry about being excessively dependent on China. They appear not to have worried about this quite so much when their dependence on the U.S. market was comparable.

Two full workshop sessions will be devoted to Japan and South Korea, both countries with close U.S. ties. What are the most important factors with regard to China’s rise for these two countries? What about for Southeast Asia?

One of the reasons for our upcoming Beijing workshop is to develop a general template of questions we can ask for each region. We want to avoid focusing the questions too narrowly on Northeast Asia.

For Japan and Korea, one factor has to do with economic opportunities and with their own vulnerabilities. The other has to do with the security challenges of China’s rise, and the uncertainty of its military aspirations. Japan and Korea do not want to be drawn into U.S.-led activities, but they still value the United States for protection. They are concerned about managing the decoupling of economic and security dependence, about no longer being dependent on the same country for both.

Many regional issues are interrelated, such as maritime territorial claims and naval expansion. China is an economic player in Southeast Asia, and the Philippines and Thailand have an alliance with the United States. Indonesia is a rising county in Southeast Asia, and India is an outside player in the region. The U.S. 7th Fleet currently defends the shipping lanes to Northeast Asia that go through Southeast Asia, which probably is not the long-term solution.  

Russia played an important role in shaping the political ideology in the early days of the People’s Republic of China, and the politics of both countries—especially Russia—have changed so much. What is their relationship like now?

Correct and limited. The West imposed a military hardware embargo on China after Tiananmen, so Russia is a limited alternative for that, and it is also a source of energy and other resources. It is fair to say China has something close to disdain for Russia, for what it sees as political confusion and economic mismanagement. The idea of a strategic triangle—using Russia to balance U.S. influence—is something China sees as unviable.

As you move forward with this project, what is the ultimate goal?

The goal is to understand the dynamics of interaction—to understand the bigger picture. Other countries have objectives and concerns with regard to China, while China has objectives and concerns of its own. It is about identifying things such as where they see the same and different kinds of opportunities; what concerns they have about third country interests or involvement; and how they evaluate the success of policies to date.  

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"Focus straight ahead on the development of Pudong [Shanghai commercial district]," says Deng Xiaoping on a poster at the 2010 Shanghai World Expo.
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On January 31, Roni Hong, a human trafficking survivor and founder of the Tronie Foundation presented her testimony at the third installment of the Sanela Diana Jenkins International Speaker Series. Hong dramatically recounted her personal story of being trafficked into forced labor at the young age of seven in India. She spoke of the beatings and torture she suffered and ultimately her illegal, international adoption. Her story raises the controversial issue of legal and illegal international adoption.

Hong highlighted the fact that most of the framework for advocacy for victims of human trafficking centers on sex trafficking. Citing data from the Trafficking in Persons Report, Hong explained that globally there are more victims of trafficking for labor than sexual exploitation. In the United States, hundreds of thousands of children work on farms exempt from the minimum age and maximum hour requirements that apply to all other working children. This exposes them to work at younger ages, for longer hours — often ten or more hours per day — and under hazardous conditions. They are vulnerable to the risk of pesticide poisoning, heat illness, injuries, life-long disabilities, and even death.

Through the Tronie Foundation, Hong organized a network of survivors of human trafficking. She has been interviewed by Oprah and has been a key advocate for legislation that mandates training of health providers in identifying signs of human trafficking in Washington state. Hong hopes that her work and the survivors’ network will empower victims like herself to find their voice and speak out. Hong told the audience that by bringing their voices together, victims can advocate for policies that address the causes of trafficking and advance human rights.

 

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Rani Hong and Helen Stacy
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Riding around on the back of a motorcycle in 2009, Jeremy Menchik snapped photos of hundreds of Indonesian campaign posters. That number has now grown to over 5000 images, which Menchik and Colm Fox have painstakingly coded and analyzed to better understand the politics of identity in Indonesia. The initial results of their research reveal similarities between the United States and Indonesia, and shed light on the transitional democracies of the Arab Spring.

Menchik is a 2011–12 Shorenstein Fellow at Stanford University, and will take up a position as an assistant professor in international relations at Boston University in 2013.

Fox is a doctoral student at the George Washington University’s Department of Political Science.

How important is political identity in Indonesia? Why?

Indonesia is the largest Muslim-majority country in the world, and one of the most diverse. But what we found was that rather than being unique, Indonesian politicians behave remarkably similar to American politicians in using a variety of regional, religious, and ethnic identity symbols to court voters.

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For example, just recently on NPR, I heard Mitt Romney and Newt Gingrich using broken Spanish to appeal to Latino voters in Florida. That is no different than candidates for mayor in northern Sumatra, who often print one poster with them wearing Islamic clothing for one neighborhood, and another poster with them wearing Batak clothing for a different neighborhood. And a third where they are draped in the Indonesian flag.

Our research suggests that despite the obvious differences between a developed, Western country like the United States, and a developing, Muslim-majority country like Indonesia, politicians often act similarly when they are trying to win elections.

What is an important factor in determining a candidate’s use of identity symbols?

What we found is that the election rules matter, a lot. Candidates are far more likely to use religious and ethnic symbols in a plurality (“winner-take-all”) system like the United States than in a proportional representation system (PR) like Indonesia. This is an important finding, because tinkering with election rules is one of the tools that international relations practitioners can use to reduce ethnic and sectarian violence. And what we are saying is that it works. Changing election rules can change the types and levels of identities that are politicized. And that is an important lesson for conflict resolution.

What are some of the most surprising results to come out of your research?

The first is how badly the dominant explanations for identity politics—modernization theory and secularization theory—fared when they were tested on a large dataset. We are at an interesting juncture in time, where our theories of religion and politics have not caught up with the way the world works.

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A second surprising finding is how much electoral rules shape the use of identity symbols. Indonesia is a Muslim-majority country, but you would not know it in many of the PR elections. Having strong party backing is so crucial to winning seats in the legislature that it overrides candidates’ religious identity. This points to a similarity between a developed, consolidated Western democracy like the United States, and a developing, unconsolidated Muslim-majority country like Indonesia. The rules are really important for understanding "how politics works" in the Muslim world.

Finally, it was interesting to see the continued importance of history for understanding contemporary political behavior. Regional rebellions that happened in the 1950s continue to echo in politics today. There are certainly ways that changing electoral rules and economic development can result in a shift in political identity, but without understanding the specific Indonesian context, a lot of our results do not make sense. That is an important lesson that for understanding how people in a Muslim country vote; the regionally specific history of that country is very important.      

During last year’s Arab Spring, the ideal of democracy was celebrated throughout the world. How might your research shed light on understanding the complexities of these transitioning democracies?

Well this research has clear implications for the Arab Spring, particularly for understanding the future of Egypt. Just because religious parties like the Muslim Brotherhood or the Salafist Nour party come into office does not mean that democracy is doomed, or that religious minorities are going to suffer. As long as secular Muslims, Christians, liberals, and other groups have a stake in elections, we are likely to see cross-ethnic and cross-religious coalitions emerge. This is a very good thing. One obvious difference, however, is that we did not see a lot of overt military participation in politics in Indonesia after 1999. The military was largely absent. And that is one way that Egypt is very different from Indonesia. If there is a big threat to democracy in Egypt, it is not coming from the politicization of identity—it is coming from the suppression of the people's voice by the military.

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Indonesian election posters often contain a complex mix of religious, ethnic, and political party symbolism.
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On January 17, the Program on Human Rights welcomed Bradley Myles and Helga Konrad to the Stanford campus to open the 2012 Sanela Diana Jenkins International Speaker Series. Bradley Myles is the executive director and CEO of Polaris, a leading organization in the United States combating all forms of human trafficking. Helga Konrad is the special representative on combating trafficking in human beings at the Organization for Security and Co-operation in Europe.

Drawing from a combined thirty years of experience working in the field of human trafficking, Myles and Konrad discussed the challenges of making accurate assessments of the magnitude of the problem. Myles explained that the US does not have reliable estimates on the number of victims of human trafficking. The lack of data has undermined efforts to implement public policy, raise awareness and funding. There are many reasons why assessment of human trafficking is very difficult. Myles argued, for example, that within the United States there are many different definitions of human trafficking that facilitate misconceptions of human trafficking and create a vacuum in the law.

Konrad pointed out that in Europe most countries have adopted new anti-trafficking laws or amended their criminal codes to provide for the specific crime of human trafficking. However, the need for national and regional coordination mechanisms and frameworks persists. She highlighted that although data is important, one person submitted to human trafficking is one too many. In her opinion, Europe still needs a regional referral mechanism that would interact with services and other counter-measures (shelters, hotlines, voluntary repatriation, and short-term assistance) to protect victims and not criminalize them.

In the United States, the Polaris Project has been providing services to survivors and striving for long-term solutions since 2002. Polaris operates the National Human Trafficking Resource Center hotline 1.888.3737.888 and works to train different audiences including police officers, health providers and child protection social workers. Myles mentioned that awareness and information enables people to take responsibility. He believes that it is possible to create a movement to empower communities to change laws, policies, costumes, and effectively combat human trafficking.

 

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South of Mount Fuji, along Japan’s central eastern coast, sits Shizuoka Prefecture. Home to green tea plantations, hot springs resorts, and Yamaha pianos and motorcycles, Shizuoka Prefecture is a vibrant agricultural, tourist, and manufacturing region. It is also home to Katsunori Hirano, a current Corporate Affiliates Visiting Fellow at the Shorenstein Asia-Pacific Research Center (Shorenstein APARC).

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Katsunori Hirano
Hirano was born and has lived most of his life in Shizuoka Prefecture, and has worked for the prefectural government for nearly 20 years. He specialized in energy and environmental policy while pursuing a master’s degree in urban affairs and public policy at the University of Delaware (UD). His research explored ways to apply watershed management framework concepts to forest resources management in Japan. While at Stanford, he is studying biodiversity conservation and enhancement while also seeking to re-envision the path to a clean and safe sustainable future.

Last year’s Fukushima nuclear disaster has inspired him to explore ways for Japan to reduce its dependency on nuclear energy. Under the direction of political science professor Phillip Lipscy, Hirano is currently researching incentive mechanisms for financing energy efficiency and renewable energy in place in the United States.

At the very beginning of his UD program, Hirano learned about the distinction between “economic growth” and “development.” “People tend to use the Japanese-language terms interchangeably,” he says.

He is currently exploring case studies from Costa Rica and Bhutan—two countries that have been successfully managing biodiversity—in his search for sustainability models. He says the United States also offers a variety of practical examples of environmental and social sustainability. This year, Hirano plans to study the lifestyle of Amish villagers in Pennsylvania.  
 
Hirano also actively participates in Shorenstein APARC-organized visits to local companies and government organizations such as Facebook and San Francisco City Hall. He says that such site visits help broaden his thinking about innovation and sustainability.

Hirano will continue taking Stanford courses related to his research, attending on-campus workshops and seminars, and speaking with the many people he meets through his campus activities. “Stanford’s extraordinary breadth of teaching and research resources is just wonderful. To me, the learning opportunities that Stanford offers are limitless,” he says, adding that the value of in-person learning far outweighs book-based knowledge.

As Hirano pursues his research at Stanford on energy efficiency and renewable energy and searches for a redefinition of sustainable development, he hopes Japan will begin to pursue social-based development. “I believe that the challenges posed by the Fukushima experience will help inspire Japan to lead the world in creating a sustainable future for generations to come.”

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A view of Mount Fuji, as seen from Shizuoka Prefecture, Mar. 2005.
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One year after the Arab Spring, American public diplomacy is still facing the now-established conundrum of linking words and actions. The rise of Islamist political parties as the new leaders in the Arab world is the latest challenge for U.S. public diplomacy, but it is also an opportunity.

Since the attacks of September 11, the United States has been matching its military activity in the Middle East with outreach to Muslim and Arab communities. By and large, this outreach has not been successful. As several public diplomacy experts have been arguing for a number of years now, the limited impact of this outreach is due to the negative perception of U.S. foreign policy towards the Middle East by citizens in the region. When actions and words do not match, words are perceived with a hefty dose of suspicion.

When the Egyptian revolution began on January 25, 2011, U.S. foreign policy took some time to catch up with sentiment on the Egyptian street. To make matters worse, the “Made in USA” tear gas canisters that protesters in Tahrir Square angrily displayed to the cameras of the international media were a further reminder of the United States’ cozy relationship with the Mubarak regime.

Since then, the U.S. has improved its words and actions by declaring both rhetorical and policy support for the Arab world’s revolutionaries (albeit in varying degrees), and as a result, public opinion about the U.S. in the region has improved. The 2011 Arab Public Opinion Pollshows a significant increase in favorability towards the U.S., compared with the 2010 poll, from 10% to 26%. The U.S. must continue to enhance this record.

Back in 2006, after much hype by the U.S. about the importance of free and fair elections in Palestine, the U.S. backtracked when Hamas swept the Palestinian Legislative Council elections in Gaza,withdrawing aid and boycotting the elected Gaza government. As Islamist parties sweep free and fair elections in one country after another in the region—starting with Tunisia, then Egypt—it is fairly safe to declare that in the immediate aftermath of the Arab Spring, the Arab world will be led by Islamists. So far, the U.S. has not repeated the mistake of 2006 with Hamas’ election in Gaza, accepting the results of the elections as democratic and as representing the will of the people.

But this is not enough. Of course, the United States currently has an easier task, since none of the groups that have been elected to-date in the Arab region are on the U.S.’s “terrorist” list. However, merely accepting election results will not cause a significant change in the perception of the U.S. on the Arab street.

The U.S. recognizes the current period as one of opportunity: it is the time to reinvigorate U.S. assistance with civil society, economic aid, and cultural outreach in the Arab world. But the most important “action” of all remains how foreign policy will play out. The Islamist groups that have assumed leadership positions in Tunisia and Egypt, namely Ennahda and the Muslim Brotherhood, have one very old dream: to be recognized as statesmen nationally and internationally. If U.S. foreign policy in this new era is going to be successful, it must be based on treating those leaders as such.

This is not just important on the traditional diplomatic level; it is also important for the success of U.S. public diplomacy. The Islamist leaders now assuming positions as Prime Ministers or House Speakers (and who knows, perhaps also presidents in the near future) reached power through having been elected by their constituents. The U.S. cannot reach out to those constituents while treating their leaders differently. In the past, U.S. public diplomacy towards Egypt appeared insincere because the U.S. attempted to engage the Egyptian people while taking a soft stance towards the Mubarak regime, which had been jailing, harassing, and—as in the case of Khaled Said—killing those same people.

For the first time in the Arab world’s history, there is a real opportunity for the U.S. to match its words and actions towards the region, and to have foreign policy become the basis upon which to formulate a truly engaging public diplomacy.

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Confucian Humanism as World Governance

Dialogue with FRANCIS FUKUYAMA, Olivier Nomellini Senior Fellow at FSI, Stanford University 

Tu Weiming, has been instrumental in developing discourses on dialogue among civilizations, Cultural China, reflection on the Enlightenment mentality of the modern West, and multiple modernities.  He is currently studying the modern transformation of Confucian humanism in East Asia and tapping its spiritual resources for human flourishing in the global community.  He is a Fellow of the American Academy of Arts and Sciences (AAAS), and a Member of the International Philosophical Society (IIP).     

Francis Fukuyama, has written widely on issues relating to democratization and international political economy.  His most recent book, The Origins of Political Order, was published in April 2011. He is a resident in FSI’s Center on Democracy, Development and the Rule of Law at Stanford University, a senior fellow at the Johns Hopkins SAIS Foreign Policy Institute, and a non-resident fellow at the Carnegie Endowment for International Peace. 

This event is co-sponsored by the Center on Democracy, Development and the Rule of Law’s ‘The Governance Project’ and the Confucius Institute at Stanford University

 

CISAC Conference Room

Tu Weiming Lifetime Professor in Philosophy and Director of the Institute for Advanced Humanistic Studies, Peking University; Research Professor and Senior Fellow of the Asia Center, Harvard University Speaker

Encina Hall, C148
616 Jane Stanford Way
Stanford, CA 94305

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Olivier Nomellini Senior Fellow at the Freeman Spogli Institute for International Studies
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Francis Fukuyama is the Olivier Nomellini Senior Fellow at Stanford University's Freeman Spogli Institute for International Studies (FSI), and a faculty member of FSI's Center on Democracy, Development and the Rule of Law (CDDRL). He is also Director of Stanford's Ford Dorsey Master's in International Policy, and a professor (by courtesy) of Political Science.

Dr. Fukuyama has written widely on issues in development and international politics. His 1992 book, The End of History and the Last Man, has appeared in over twenty foreign editions. His book In the Realm of the Last Man: A Memoir will be published in fall 2026.

Francis Fukuyama received his B.A. from Cornell University in classics, and his Ph.D. from Harvard in Political Science. He was a member of the Political Science Department of the RAND Corporation, and of the Policy Planning Staff of the US Department of State. From 1996-2000 he was Omer L. and Nancy Hirst Professor of Public Policy at the School of Public Policy at George Mason University, and from 2001-2010 he was Bernard L. Schwartz Professor of International Political Economy at the Paul H. Nitze School of Advanced International Studies, Johns Hopkins University. He served as a member of the President’s Council on Bioethics from 2001-2004. He is editor-in-chief of American Purpose, an online journal.

Dr. Fukuyama holds honorary doctorates from Connecticut College, Doane College, Doshisha University (Japan), Kansai University (Japan), Aarhus University (Denmark), the Pardee Rand Graduate School, and Adam Mickiewicz University (Poland). He is a non-resident fellow at the Carnegie Endowment for International Peace. He is a member of the Board of Trustees of the Rand Corporation, the Board of Trustees of Freedom House, and the Board of the Volcker Alliance. He is a fellow of the National Academy for Public Administration, a member of the American Political Science Association, and of the Council on Foreign Relations. He is married to Laura Holmgren and has three children.

(October 2025)

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