Petrostate

A petrostate, oil state or petrocracy is a polity whose economy is heavily dependent on the extraction and export of oil or natural gas. Petrostates are conventionally independent nations; however writers like Samuel Weston and Andrew Nikiforuk describes major oil-producing subnational entities like Wyoming, Alberta and Louisiana as also petrostates. A petromonarchy or oil monarchy is a petrostate run by a dynastic absolute monarch; one run by another type of autocrat is a petro-dictatorship.

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. Petrostates typically have highly concentrated political and economic power, resting in the hands of an elite, as well as unaccountable political institutions that are susceptible to corruption.

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