BENEFITS OF OIL EXPLORATION
All petrol, diesel, kerosene, gas, lubricants and bitumen used in Uganda are imported. This, however, could change when Uganda starts exploiting her oil. This would cushion her against oil price fluctuations and guarantee constant oil supply.
BY VISION REPORTER
All petrol, diesel, kerosene, gas, lubricants and bitumen used in Uganda are imported. This, however, could change when Uganda starts exploiting her oil. This would cushion her against oil price fluctuations and guarantee constant oil supply.
Expected gains
Ć Generation of energy to address the electricity shortage resulting from limited hydropower and increasing demand.
Ć Many Ugandans could get employment opportunities in businesses that will offer services to the oil and gas sector.
Transportation and storage of oil may lead to the construction of pipelines, railways and storage facilities. Such construction will create demand for semi-skilled labour.
ƒÜ The sector will also create demand for skills not catered for by the country¡¦s education system. Tertiary institutions will have to introduce courses to meet the human resource requirements of the sector.
The downside
Ć Oil and gas activities may affect man, wildlife and biodiversity and associated tourism.
Ć Trans-boundary water resources of the Albertine ecosystem where production is anticipated may be affected.
Ć Oil spills can contaminate water sources. Gas blowouts could result in fires. Gas flares and dust result in air pollution, possibly leading to sickness.
ƒÜ If the resource is not well managed, it can result in the ¡§Oil Curse¡¨ in which multi-nationals and the government make profits, while the local people become worse off. This can happen when the sector does not provide jobs for the locals. It also happens if politicians entrench themselves in power to continue reaping the benefits of oil.
All petrol, diesel, kerosene, gas, lubricants and bitumen used in Uganda are imported. This, however, could change when Uganda starts exploiting her oil. This would cushion her against oil price fluctuations and guarantee constant oil supply.
Expected gains
Ć Generation of energy to address the electricity shortage resulting from limited hydropower and increasing demand.
Ć Many Ugandans could get employment opportunities in businesses that will offer services to the oil and gas sector.
Transportation and storage of oil may lead to the construction of pipelines, railways and storage facilities. Such construction will create demand for semi-skilled labour.
ƒÜ The sector will also create demand for skills not catered for by the country¡¦s education system. Tertiary institutions will have to introduce courses to meet the human resource requirements of the sector.
The downside
Ć Oil and gas activities may affect man, wildlife and biodiversity and associated tourism.
Ć Trans-boundary water resources of the Albertine ecosystem where production is anticipated may be affected.
Ć Oil spills can contaminate water sources. Gas blowouts could result in fires. Gas flares and dust result in air pollution, possibly leading to sickness.
ƒÜ If the resource is not well managed, it can result in the ¡§Oil Curse¡¨ in which multi-nationals and the government make profits, while the local people become worse off. This can happen when the sector does not provide jobs for the locals. It also happens if politicians entrench themselves in power to continue reaping the benefits of oil.