Date Posted: 3/29/2012 9:12:39 AM
Posted By: SimonMburu Membership Level: Silver Total Points: 838
Crude oil, also known as the ''black gold' has been discovered in the Northern part of Kenya in the county of Turkana. The discovery is an exclusive big relief to the economy of Kenya as well potential investors. Kenya is now aspiring to be among the biggest exporters of oil in the world if the whole project ends up successfully as the wells are said to have the light-type of the crude, which has a high potential of yielding quality extracts. Although Kenya, a third world country, has struck this black gold, it could lead to social and political indigestion if proper precautions of mining and environmental bills are not considered. Kenya should learn from other African countries with the same wealth but have not had the chance of utilizing it exhaustively to their benefit due to political unrest and land ownership woes. There are several possible drawbacks that this country might face in the process of aspiring to benefit from the oil.1. Inter-ethic skirmishes-Like many African countries with oil, inter ethics unrest between tribes at the oil region might lead to many years of tribal clashes. The Northern region of Kenya is already famous with the rivalry between Pokot and Turkana tribes due cattle rustling plus the invaders from neighboring Ethiopia. The government should therefore initiate proper measures to curb feature problems and ensure that all Kenyans will benefit from the oil.2. Corruption - Greedy prominent people in the government might squeeze all the oil's revenue into their pockets, this is the same experience in Nigeria which is a big oil exporter in the region but it is still recording an increase in poverty level from 55 percent to 60 percent in a period of less than 10 years. 3. Over exploitation - Tullow company which is currently owning the contract of exploiting the oil will take home 80 percent of the revenue in the first year and Kenya will be able to reap full benefit in the fifth year. Currently the estimated amount in the Ngamia well is 1003 million barrels and the possible amount to last for five years is 2000 million barrels, what if the wells run dry before the fifth year? Will we benefit? This will be a full exploitation exercise by a foreign country. This is not new as we have seen the tendency of international interest on third world country when they strike oil.
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