REVENUE, STATE FORMATION, AND THE QUALITY OF

  • a new path for managing the governance of oil revenues in south
  • a new path for managing the governance of oil revenues in south
  • a new path for managing the governance of oil revenues in south
  • a new path for managing the governance of oil revenues in south

Annual Report 2 019 assets.new.siemens

Oil and Gas in Africa afdb.org

Guyana Oil and Gas Exploration Potential Enverus

Delivering on the promise: Leveraging natural

  • How can a host government transform oil resources into productive capacity?
  • Host governments need to attract investment (capital) to transform oil resources into productive capacity (Goldsworthy & Zakharova, 2010:6). To achieve this goal, the host government should ensure that investors receive a return on investment that is in line with the associated risk.
  • How can a National Oil Company (NOC) improve governance?
  • From a technical standpoint, the National Oil Company Database, its associated publications and many international initiatives provide a starting point to identify and fill gaps. Politically, some NOCs have shown the ability to “lead” and institute strong reporting systems even amidst broader governance challenges.
  • How would the government benefit from oil & gas taxes?
  • The government would gain additional income from taxes paid by the crude oil, petroleum and gas industry. However, in most cases the cost to the economy would negate the total income benefit to the government. Source: Calculations based on UPGEM results.
  • Could South Africa benefit from shale gas development in the Karoo Basin?
  • In terms of onshore development, there is also the possibility of significant shale gas reserves from the Karoo basin. The South African economy could greatly benefit from further developing the upstream sector to a stage where significant production can be achieved.
  • How can a country's petroleum fiscal system attract investment?
  • A country’s petroleum fiscal system can attract investment by using a framework that is clear and not subject to retroactive changes (Tordo, 2007:1). An efficient system will promote the development of a country’s upstream sector by inducing efficient exploration and development by IOCs, while ensuring a fair share for the host government.
  • How does the oil and gas sector affect wages?
  • The increase in production from the crude oil, petroleum and gas sector results in a slight increase in the demand for labour in the sector and in related activities. Aggregate employment in the short-run increases by approximately 0.01%, placing upward pressure on real wages.