Oil Reserves in Kenya

What a milestone in the energy industry. It’s with gusto I note the recent discovery of oil reserves in Turkana. I salute the companies spearheading this prospect.

Significantly, oil has been the driving force of the many well performing economies in the world. It is the source of industrial fuel, jobs, foreign exchange. Equally important, is the indirect benefits derived from oil. This valuable resource brings a smile to many especially the poor.

Many are the underlying questions on how the common citizens will benefit. It is my pleasure to assert the several advantages which will be realized on discovering more oil reserves and commercialization of the same.

Remarkably,oil as noted earlier is the driving force of most industries. With the oil being locally mined drilled and refined, it will cut on the importing costs associated with crude oil. Consequently this cuts down on industrial overheads and hence the cost of production.

The poor in particular will be in a position to reap the value of cheap goods and services. This will leave them with surplus to save and invest in interest earning ventures. This means more income.

With the earnings from the oil exports being reinvested in infrastructure development such as modern transport systems, in health sector and education wise project, many will conspicuously stand to gain.

Moreover, the government will build on its foreign reserves guarding the economy against external currency shocks. Economic stability is a wake up call to the prospecting investors. To summarize, the oil discovery in Kenya will be a source of more profits but only if the industry will be guarded against political machinations.