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Ugandan Oil production
amga
#1 Posted : Wednesday, December 08, 2010 11:00:23 PM
Rank: Member

Joined: 8/16/2010
Posts: 149
Location: hapa Kenya
so our neighbors are gearing to start oil production while we're busy sorting ourselves with arabian oil wats the issue of having the oil flow into kenya am sure this will translate to lower prices which we've all been fighting so hard
K22
#2 Posted : Thursday, December 09, 2010 8:43:53 AM
Rank: Member

Joined: 9/12/2008
Posts: 436
Location: illobi
It might also have negative impact on our economy.... see this article from Business Daily

A successful man is one who makes more money than his wife can spend. A successful woman is one who can find such a man
Ali Baba
#3 Posted : Thursday, December 09, 2010 9:07:32 AM
Rank: Member

Joined: 8/29/2008
Posts: 573
K22:Well,it won't be so bad after all. Remember Kenol-kobil and KPL saga? They will be a thing of the past!!! The in-efficient kenyan refinery will be put to an acid test.Either it improves( and stops raising prices) or it sinks.So, welcome Uganda oil,welcome......
tony stark
#4 Posted : Thursday, December 09, 2010 9:21:30 AM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
K22 wrote:
It might also have negative impact on our economy.... see this article from Business Daily


BD are full of inflammatory statements.
Pumping refined oil is not in the interest of he oil companies hey recoup their money faster by exporting crude. They are going to be resistant to building of a larger refinery infact any refinery. If uganda decide to build a refinery it will be at their on cost.
The fact that uganda has oil does not mean Kenya, Tanzania, Rwanda etc will not discover oil. Infact the oil discovery suggest that someone else has oil. If that is the case if they build a huge refinery instead of building a pipeline to export oil they could be left with too much oil that they can not consume or export.
There are a lot of factors at play and the idiots who write in the BD should at least try and understand them before they report.

Ugandas oil will definitely benefit us before it hurts us! Exports will not reduce infact exports will increase as the wealth of the country increases the more they consume and the more we export..... plain and simple!
alikujia
#5 Posted : Thursday, December 09, 2010 1:17:31 PM
Rank: Member

Joined: 5/27/2010
Posts: 324
Location: nrb
I have not done detailed analysis of the Uganda discovery but definitely i was puzzled by insinuations by the paper that kenya's being disadvantaged. it is very obvious this country losses so much in importing petrol from so far at high cost which ends up pushing up cost of production all over. Therefore it can only get better if you have an alternative next door.

As for uganda developing own industrial capacity because of cheap oil, this is not necessarily guaranteed and how long it will take and at any rate, a highly developed uganda economy with higher
purchasing power can only be of a greater benefit to kenya, as @tony says above. you do better when your buyer becomes richer, not poorer.
amga
#6 Posted : Friday, December 10, 2010 3:40:43 AM
Rank: Member

Joined: 8/16/2010
Posts: 149
Location: hapa Kenya
tony stark wrote
"Ugandas oil will definitely benefit us before it hurts us! Exports will not reduce infact exports will increase as the wealth of the country increases the more they consume and the more we export..... plain and simple!"
this is what we need like yesterday considering how badly the oil industry needs a wake up call similar to wat equity has done to the banking sector to wrestle it away from the face of greed
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