Things are beginning to look positive for the struggling country of Liberia. With a population of 3.4 million, its major exports are rubber and timber. Liberia is also still recovering from a civil war that ended only a few years ago. Advances are surely being made though, Delta Airlines last weekend made its first direct flight to the small country in decades.
More promising though, Chevron believes they can find oil in the deep waters off of the country. The Californian company just set up three deep water blocks covering 3,700 square miles which is bigger than what Chevron holds off the oil rich shores of Angola. Chevron holds 70% of the concessions and will have an exploration going on for three years in search of the oil.
I believe that if they do in fact find a significant amount of oil, it could be revolutionary for Liberia and make major business for Chevron. Liberia needs something of this magnitude to boost its recovery and take it from one of the poorest countries in the world to an up and coming African oil power.
Investors would be smart to take a good look at this situation and to consider getting involved. This exploration will create many jobs and the possible revenue if oil is found will give Liberia's economy a major boost. I'm interested to see what comes out of this, Chevron seems positive looking into the situation and hopefully it works out well.
http://online.wsj.com/article/SB10001424052748703453804575479981224884048.html?mod=WSJ_Energy_leftHeadlines
Liberia has been an unstable region in Africa with several civi wars over the past 20 years. We can only pray that maybe their natural resources may stabilize the country. Just like in Afghanistan after a supposed $1 trillion in raw resources were found (energy resources included). If these countries can exploit these resources to their full potential maybe a brighter future can be attained. How did Chevron get 70% of the concessions though, political or otherwise?
ReplyDelete-Timothy Vallario