4 comments on “Energy Crisis Natural Resources + Our Economy does Lebanon have the Power?

  1. Lebanese are thrilled about the prospect of tapping their recently discovered offshore oil and gas reserves.

    However, contrary to what one would expect, the economy could be worse off if oil prices increase in the long run.

    Threats include corruption, poor implementation of regulations, inequitable distribution of oil revenues, volatility of oil prices, non-diversification of the economy and environmental risks.

    Under EITI standards the government would be required to publish revenues incurred from oil and gas sales.

    A third key choice then facing Lebanon is how to manage and spend its oil and gas money.

    Nevertheless, the bulk of oil and gas wealth will flow to the Lebanese Treasury.

    A stabilization fund would need to be set up to cushion the economy and avoid deep cuts in government oil revenues in case of sharp declines in international oil and gas prices.

    Lebanon can significantly grow its economy if the right mechanisms surrounding its oil and gas sector are put in place.

    Read more – http://www.dailystar.com.lb/Opinion/Commentary/2012/Mar-06/165646-lebanon-can-avoid-the-resource-curse.ashx

  2. Reblogged this on MENA Business Intelligence and commented:
    Lebanese are thrilled about the prospect of tapping their recently discovered offshore oil and gas reserves.

    However, contrary to what one would expect, the economy could be worse off if oil prices increase in the long run.

    Threats include corruption, poor implementation of regulations, inequitable distribution of oil revenues, volatility of oil prices, non-diversification of the economy and environmental risks.

    Under EITI standards the government would be required to publish revenues incurred from oil and gas sales.

    A third key choice then facing Lebanon is how to manage and spend its oil and gas money.

    Nevertheless, the bulk of oil and gas wealth will flow to the Lebanese Treasury.

    A stabilization fund would need to be set up to cushion the economy and avoid deep cuts in government oil revenues in case of sharp declines in international oil and gas prices.

    Lebanon can significantly grow its economy if the right mechanisms surrounding its oil and gas sector are put in place.

    • Thank you Ramy for reblogging I do agree with you we will be facing a lot of problems, oil an gas production may not be the best productions in Lebanon. The country is highly corrupt and if new regulations are not put in place to limit corruption, you are right on the long term this would lead to negative consequences.
      Sadly we are too involved in international agreements and organizations (not that this is the best solution to become a developed country and get out of the crisis), we need to comply with the status quo.
      On the other hand, we can focus on the solar energy it would save a lot of costs for the government and the citizens. Let’s hope that new regulations won’t be put in place to limit the expansion of this energy.

  3. My Pleasure Maria. I found your post interesting with insightful perspective. Therefore, your analysis stands with alternative energy is the key sustainable strategy for the future of energy consumption in Lebanon. I hope it will be implemented without corruption and be put up for political power-broker like any other decision is being made by the current government. Even oil rich golf states are moving into alternative energy! Read more – http://www.nytimes.com/2012/10/02/business/energy-environment/helping-a-neighbor-ease-its-oil-use.html?partner=rss&emc=rss&_r=0

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s