Reduce the dependency on oil import bill Essay Sample
Reduce the dependency on oil import bill
The Government of the county spends a high amount for the import of the oil and gas that is not beneficial for the financial and economic growth of the country. In the words of Spence (2011), Oil and gas energy are the backbone of the financial system of the country, so the right energy policies can provide a high growth in all other sectors of the country.
The 50% importing of the oil and gas are a large amount to buy the energy from other countries. There is a need for the government to reduce the imports of the oil and gas by the enhancement in the refinery. The population of the country may increase the demand for the bio fuel in the upcoming years because increasing in the technology.
For overcoming this issue, the government should prepare itself for the reduction in the import of oil and gas requirement (Frynas, 2010). The government should invest in the domestic production of coal, oil and natural gas for the long term solutions of importing issues.
The government should cut down the import of oil and gas from other countries by the development of bio fuel and bio diesel refineries in the country. For the production of bio fuel and diesel, the government can utilize the agriculture land of the small farmers.
The oil refinery can be helpful to improve the economy of the country with the reduction in the import cost. It can also reduce the energy cost of the country by the reduction in the import. The oil refinery can provide the long term benefits to the unemployed person of the country (Ross, 2011). Moreover, the increasing price of the energy products influencing on the inflation rate and economy of the country.
It can be hoped by the government of the country that in the next 10 years, the import of the oil and gas should be reduced to the 30%. At the present time, if the government thinks about the new investment in the oil sector, it can take up to 5 years in the local production and distribution.
The production of the oil and gas can provide a high growth to the economy by the effective implementation of the planning (Tordo, 2011). The country has only 50% own oil and gas industry that is not much acceptable for the economy of the country. So, the government should increase it at the level of export to the other countries.
There are several issues that can be faced by the government for the production of the refinery in the country. The government can face the problem at the initial stage of the process such as need a large amount of land, high initial investment, tender to oil firm, concessions in tax etc.
At the same time, the government should offer the tax holidays to the oil and gas corporations for farming the bio fuel in the country. Additionally, the government can also offer the land or loan on the land for highly increment in the local oil production (Gregory et al., 2011). The oil firm can provide a high amount to the small farmers for acquiring the land of them.
In addition, some farmers do not want to sell their land to the oil company. The reason in this is that the lifestyle and future may relocate at the uncertain place. Moreover, it can also reduce the employment of the farmer by acquiring the agriculture land of them. The farmers would change their place for the agriculture and changes field should be able for the agriculture.
The increasing price of the food can be another issue by the oil and natural gas production in the home country. It is because there may be a possibility of increment in the population of the country and the refinery can cover a large amount of land for the production.
The reduction in the land and increment in the population may reduce the productivity of the agriculture. The bio fuel farming can affect the agriculture land and growth of the food product (Ackah-Baidoo, 2012). So, it can be said that the food price can increase by the high consumption and low production in the long term or short term in the overall country.
For the oil and gas industry need huge land that can take from the small farmers by the government. The government should provide the reasonable amount for land to the farmers as a compensation for the damage. To solve the issues of the farmers, the government should provide the land for the agriculture.
Additionally, the government should provide the subsidy to the farmers for agriculture product in the new land because it may unsuitable to farmers. The farmers should also understand the effect of the new industry that can provide a growth to the entire economy of the country (Campbell, 2013).
The government should also introduce the farmers about the new technology of the agriculture where the production in the food can be increased by the development of the agricultural products.
The government should provide the subsidy to the farmers for using the fertilizers for more productivity. In the concern of the lifestyle and tradition of the farmers, they have to lose it and should think about the financial and economic growth of the country.
Besides, they should create new future with the development of the lifestyle from the traditional life (Wiig & Kolstad, 2010). The government should also think about the environmental effect by the new refinery or renewable energy and provide solution of them.
In this study, it is concluded that the government should commit to the reduction in the oil import bill by produce own oil and natural gas refinery. The reduction in import of oil and gas can be helpful for the expansion of the growth of the nation.
Ackah-Baidoo, A. (2012) Enclave development and ‘offshore corporate social responsibility’: implications for oil-rich sub-Saharan Africa. Resources Policy, 37(2), pp. 152-159.
Campbell, C. J. (2013) Nigeria. In Campbell’s Atlas of Oil and Gas Depletion(pp. 51-53). USA: Springer New York.
Frynas, J. G. (2010) Corporate social responsibility and societal governance: Lessons from transparency in the oil and gas sector. Journal of business ethics, 93, pp. 163-179.
Gregory, K. B., Vidic, R. D., & Dzombak, D. A. (2011) Water management challenges associated with the production of shale gas by hydraulic fracturing. Elements, 7(3), pp. 181-186.
Ross, M. L. (2011) Will oil drown the Arab Spring? Democracy and the resource curse. Foreign Affairs, pp. 2-7.
Spence, D. B. (2011) Corporate social responsibility in the oil and gas industry: The importance of reputational risk. Chi.-Kent L. Rev., 86, pp. 59.
Tordo, S. (2011) National oil companies and value creation. USA: World Bank Publications.
Wiig, A., & Kolstad, I. (2010) Multinational corporations and host country institutions: A case study of CSR activities in Angola. International Business Review, 19(2), pp. 178-190.
