A petrostate, oil state, or petrocracy is a country whose economy is heavily dependent on the extraction and export of oil or natural gas. The presence alone of large oil and gas industries does not define a petrostate: major oil producers that also have diversified economies are not classified as petrostates due to their ability to generate income from various industries and sectors beyond the oil industry.[1] Petrostates also have highly concentrated political and economic power, resting in the hands of an elite, as well as unaccountable political institutions which are susceptible to corruption.[2]
- ^ Ashford, Emma (7 October 2015). "Petrostates in a Changing World". Retrieved 22 June 2020.
- ^ Cara Labrador, Rocio (24 January 2019). "Venezuela: The Rise and Fall of a Petrostate". Council on Foreign Relations. Retrieved 22 June 2020.