ANGOLA

Impacts of Oil & Gas Production in Angola

Table of Contents

Primary Commodity Export as a percentage of GDP3

Annual Rate of Growth of Net Import of Oil and Gas4

Ways to deal with Problem of Resource Curse and Role of Government4

Advantages and Disadvantages of New Oil Refineries, Privatization and Mixed Model in relation to Strategic Interests of Foreign Oil and Gas Companies7

Advantages and Disadvantages of New Oil Refineries, Privatization and Mixed Model in relation to Global Governance of Oil and Gas Production in Angola9

Impacts of Oil & Gas Production in Angola

Primary Commodity Export as a percentage of GDP

The given graphical representation is reflecting that the annual rate of growth of greed and grievance in relation to primary commodity export as a percentage of GDP, the increasing trend was observed from 1990 to 1999; however, afterwards, up till 2011, a decreasing trend of export as a percentage of GDP is observed. Thus, it indicates that at present, the export as a percentage of GDP of Angola is not stable.

The Angolan economy is highly dependent on the oil sector, and it has been badly hit by falling prices and demand in 2009. GDP growth, one of the fastest in the world for years, did not exceed 3.4% in 2010, after falling to 2.4% in 2009. It reached 13.8% in 2008. Despite the recovery in oil prices, growth was hampered in 2010 by an accumulation of arrears of debt in the sectors of construction and infrastructure. The forecasts are nevertheless optimistic growth should rebound to 7.5% in 2011, driven by high oil prices and a recovery of public investment program (PIP). Inflation remains a problem in Angola. After years of erosion, it rebounded in 2008 (6%) to 13.7% in 2009 and still make a point higher in 2010. It is expected to dip to 11.7% in 2011.

Annual Rate of Growth of Net Import of Oil and Gas

Besides it, in the graph that relates to imports of goods and services, it is observed that annual rate of growth of net import/export of oil and gas has been fluctuating, as the in most of the years the imports of Angola is almost zero, which is a positive sign. However, 2007 to 2008, an increasing trend was observed, which declined in 2010. For that reason, it can be said that annual rate of growth of import has been encouraging over the years for Angola.

Ways to deal with Problem of Resource Curse and Role of Government

In order to know the ways to deal with the problem of resource created by the oil & gas industry in Angola and the role of government for the maximum benefits of the national oil refinery, it is important to consider the past trends that can help in understanding the problem of resource curse oil & gas industry in Angola. In relation to this, it is necessary to meet the growing demand for energy; oil and gas remain dominant in the energy mix of the future. But time production is over; the easy oil ...