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With Oil in Turkana, Why Are We Still Importing It?
Rank: New-farer Joined: 3/22/2014 Posts: 50
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Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures.  Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks.
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Rank: Member Joined: 9/3/2015 Posts: 118 Location: Nairobi
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EngineerLMG wrote:Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures. Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks. 1. Outdated refinery at mombasa, can only process middle eastern crude. A renovation and updating was mooted,but found to be damn expensive compared to building a new one from scratch. 2. Plans are underway for a refinery at either isiolo or Lamu to serve the entire region in competition with the Ugandan refinery, plus refine all and sundry fuels in the region/world. 3. Such infrastructure takes a long time to develop, including the oil fields, thus a feasibility report is required to confirm viability of the project. What else have I left out?
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Rank: Veteran Joined: 5/5/2011 Posts: 1,059
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Well this might not be accurate but, the cost of building a new refinery is huge plus our deposits are not that much to warrant such an investment, the refinery in Mombasa was built to refine a different kind of crude, we are told that the Turkana oil is waxy making it a challenge to refine and transport, I remember that the pipeline was to be heated to allow for the waxy oil. Uhuru's plan is to export I guess he has already found a market but not sure if the price is right to break even, Kenya also tried screwing with our neighbours Uganda and SS, who would have made viable investments in a refinery and pipeline, I guess even the pipeline we said that we would build on our own will be cancelled just like the airport terminal, all in all this is Kenya. To Each His Own
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Rank: Member Joined: 2/20/2015 Posts: 468 Location: Nairobi
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kayhara wrote:Well this might not be accurate but, the cost of building a new refinery is huge plus our deposits are not that much to warrant such an investment, the refinery in Mombasa was built to refine a different kind of crude, we are told that the Turkana oil is waxy making it a challenge to refine and transport, I remember that the pipeline was to be heated to allow for the waxy oil.
Uhuru's plan is to export I guess he has already found a market but not sure if the price is right to break even, Kenya also tried screwing with our neighbours Uganda and SS, who would have made viable investments in a refinery and pipeline, I guess even the pipeline we said that we would build on our own will be cancelled just like the airport terminal, all in all this is Kenya. There are 74 illegal oil refineries in Niger delta. Instead of exporting the Turkana oil si we just let 'wanjiku' do small refineries? Our people have proven they can distil changaa running pipes across rivers....hehehe
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Musimo wrote:EngineerLMG wrote:Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures. Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks. 1. Outdated refinery at mombasa, can only process middle eastern crude. A renovation and updating was mooted,but found to be damn expensive compared to building a new one from scratch. 2. Plans are underway for a refinery at either isiolo or Lamu to serve the entire region in competition with the Ugandan refinery, plus refine all and sundry fuels in the region/world. 3. Such infrastructure takes a long time to develop, including the oil fields, thus a feasibility report is required to confirm viability of the project. What else have I left out? So musimo tuendelee ku import will be cheaper? If that's the case why do we have oil? Just to sell to other countries, we are having oil to benefit other countries and not us?
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Rank: Elder Joined: 8/16/2011 Posts: 2,387
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EngineerLMG wrote:Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures. Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks.  Shinyanga Diamond mines Tanzania....how many Tanzanians wear diamonds by virtue they mine it? Gold in Musoma Tanzania...how many Tanzanias other than Ali Kiba show off their golden necks? Now Turkanese Oil......Tullow, Africa oil etc share holders are the stake holders and thier will be done!!!
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Rank: Member Joined: 7/3/2014 Posts: 245
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Quote:Musimo wrote:EngineerLMG wrote:Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures. Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks. 1. Outdated refinery at mombasa, can only process middle eastern crude. A renovation and updating was mooted,but found to be damn expensive compared to building a new one from scratch. 2. Plans are underway for a refinery at either isiolo or Lamu to serve the entire region in competition with the Ugandan refinery, plus refine all and sundry fuels in the region/world. 3. Such infrastructure takes a long time to develop, including the oil fields, thus a feasibility report is required to confirm viability of the project. What else have I left out? So musimo tuendelee ku import will be cheaper? If that's the case why do we have oil? Just to sell to other countries, we are having oil to benefit other countries and not us? Quality and quantity. The saudis and iranians can output at 2-5usd barrel. They have nearly unlimited supply. our breakeven is 50usd and its been determined we will output a meager 2k barrel per day. Read this http://www.nation.co.ke/...html-102gyv9/index.html
fanya feasibility study. In the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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enyands wrote:Musimo wrote:EngineerLMG wrote:Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures. Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks. 1. Outdated refinery at mombasa, can only process middle eastern crude. A renovation and updating was mooted,but found to be damn expensive compared to building a new one from scratch. 2. Plans are underway for a refinery at either isiolo or Lamu to serve the entire region in competition with the Ugandan refinery, plus refine all and sundry fuels in the region/world. 3. Such infrastructure takes a long time to develop, including the oil fields, thus a feasibility report is required to confirm viability of the project. What else have I left out? So musimo tuendelee ku import will be cheaper? If that's the case why do we have oil? Just to sell to other countries, we are having oil to benefit other countries and not us? If one is looking for reasons to not develop the oil locally then one will find numerous. However there is also a case for refining it locally and that's what I would advocate for. Why can't we develop a modern refinery at Turkana, develop a crude oil pipeline to Lamu. then buy the better quality crude oil (i guess Brent?) and mix with our sludge to make our own petroleum products. We are a population of 40 Mil soon to hit 50 mil, with an effective market of less than 20%. but our gava thinks like some gishagi primary school Board/PTA. Our economic potential is unlimited, we just need to trust ourselves and go for it. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 9/9/2015 Posts: 233
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At some point Wazuan's will have start exploiting these opportunities as private investors. Unda chama,biz plan, leverage kidogo, tiny refinery done. Bure hizi ni gossip "Buy when there's blood in the streets, even if the blood is your own."
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Rank: Member Joined: 9/3/2015 Posts: 118 Location: Nairobi
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enyands wrote:Musimo wrote:EngineerLMG wrote:Reading this article was the last straw for me, and I can't continue being silent. So, could someone please explain to me why it seems like we're not gonna consume our Turkanese oil locally? The way I see it, it'll save us lots of money if we refine that oil and sell it to Kenyans and other EACans, and do away with imports from the UAE. I think it makes more economic sense to do that, than to just export it. Petroleum and its products currently accounts for 23% of our import expenditures. Why don't we just do away with this importation? Why can't we just build a refinery hapo Eldoret or Turkana and use the products locally? I'm not an economist, but I think using our own oil will help bring about - whatchamacallit? - a favourable balance of trade. Is it that nobody has asked National Oil or the government this question? Is this a political issue? Did the government sign a long-term agreement with UAE to always buy oil from it, meaning that we'll keep buying from the emirs whether or not we have our own reserves? Please school me, because maybe I'm just assuming that this thing is really simple when it's not. Thanks. 1. Outdated refinery at mombasa, can only process middle eastern crude. A renovation and updating was mooted,but found to be damn expensive compared to building a new one from scratch. 2. Plans are underway for a refinery at either isiolo or Lamu to serve the entire region in competition with the Ugandan refinery, plus refine all and sundry fuels in the region/world. 3. Such infrastructure takes a long time to develop, including the oil fields, thus a feasibility report is required to confirm viability of the project. What else have I left out? So musimo tuendelee ku import will be cheaper? If that's the case why do we have oil? Just to sell to other countries, we are having oil to benefit other countries and not us? @Enyands I have not said we continue to import. If it were my choice, the mombasa refinery would be renovated by now. But since new is always better,apart from alcohol and cheese, what option do we have? Hence point number 2 above.
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With Oil in Turkana, Why Are We Still Importing It?
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