Refinery deregulation in developing countries

For much of the 1980s refining has been unprofitable. The continued operation of small refineries in oil-importing developing countries has therefore come under intense scrutiny, especially by the international financial institutions concerned with high levels of external debt. This paper examines the specific case of Morocco. Even though refining may be unprofitable at the world's export refineries, refining may still be part of the least-cost solution to meeting developing country petroleum demands as a result of transport differentials. Unlike some other refineries in Africa, those of Morocco are well run, and closure is unwarranted. Rather the need is for regulatory and pricing reform, such that refiners can respond more flexibly to changes in world markets.     

Pricing of Natural Gas in Developing Countries

The uncertain supply and increasing cost of petroleum products since 1973 has spurred on the development of alternative forms of energy. Natural gas is a major source of energy in over 50 developing countries. In these countries natural gas has many uses as a substitute for other fuels or as a feedstock. This paper discusses the economic concept for pricing of natural gas, in particular marginal costs, and estimates the economic cost of natural gas in developing countries under a wide range of conditions. The marginal cost of natural gas estimated for these countries is far below the border price of competing fuels. Because natural gas is in its early days of development, gas supply costs are not expected to rise in these countries within the next two decades as already proven reserves are tapped.     

Rationalization of imports, refineries and distribution of petroleum in Sub-Saharan Africa

This paper outlines policies to secure and reduce the cost of oil supplies in Sub-Saharan Africa (SSA), taking into account the existing forces at play: limited foreign exchange, competition for increasingly scarce funds, and the likely emergence of Africa as the fastest growing centre of energy demand over the coming decade. It identifies major inefficiencies in petroleum procurement, refining and distribution, and analyses the specific bottlenecks at each stage of the supply chain. Many of the diseconomies, estimated to yield savings of US$1.4 per year, are traced to an inefficient regulatory set-up in SSA countries, as well as unnecessary government interference in the downstream petroleum sector. In particular, price controls, small topping refineries, monopolistic agencies, government subsidies and opaque management structures prevent the working of efficient market mechanisms. The paper discusses the importance of policy reform, outlining what changes need to be implemented on the levels of institutional arrangements, closing of inefficient units, petroleum pricing and encouraging foreign investment in the sector.     

PETROLEUM IMPORTING DEVELOPING COUNTRIES: A NEW OIL FRONTIER

The majority of developing countries depend on imported petroleum to fulfil most of their energy requirements. Many are not able to do so without substantial assistance from abroad. Meanwhile, various studies indicate the existence of a large undiscovered potential of petroleum resources in these countries. In the following article, the authors review some of the proposals for assistance to petroleum importing developing countries, and, at the same time, launch their own proposal for a modest exploration programme in the least developed countries which could enable them to become self-sufficient in petroleum in the near future.     

PETROLEUM EXPLORATION IN DEVELOPING COUNTRIES AND CONSIDERATIONS ABOUT ITS FINANCING

Although the rate of petroleum produced per foot drilled is much greater in the developing regions of the world, levels of petroleum exploration activities in the these areas are much lower than in the United States. Although exploration levels in the developing countries might have been expected to rise after the 1973/74 price increase, they actually tended to decrease. Classification of the developing countries in terms of the levels of exploration and development they have attained reveals that the greater part of the area with good petroleum potential (57 per cent of non-OPEC countries) is comprised of countries where significant exploration has already taken place. There is a need for international assistance to increase exploration levels in the developing countries. A schedule of priorities for various forms of international assistance is suggested.     

Sources of funds for developing country petroleum development

The Third World debt crisis has drastically altered the options open to Third World countries to fund petroleum development. Restricted access to international capital markets means that developing countries are having to reconsider alternative financial options to achieve a satisfactory rate of petroleum development. Of these, only foreign direct investmentis capable of compensating for the loss of more traditional sources of funds. To this end, developing countries are revising and harmonizing prior restrictive direct investment rules and tax codes, with recent financial innovations further underwriting the process.     

ASPECTS OF PETROLEUM TRANSPORT IN DEVELOPING COUNTRIES

Dramatic changes in the institutional structure of the international oil industry in recent years have created new responsibilities and opportunities for developing countries in petroleum transport. The article discusses the prospects for changes in the ownership/control pattern of seaborne oil movements and the need for both oil producing and oil importing developing countries to pursue national plans to acquire shipping tonnage and expertise, without being deterred by the present depressed conditions of the world shipping industry. Drawing from the experience in India, it deals with some features and problems of petroleum transport by sea, pipeline, rail and road. It stresses the importance of co-operation among developing countries through common operation of deep-water terminals and large size tankers to optimise transport costs.     

意大利石油天然气工业及环境保护

论述了意大利及其他欧盟国家的石油天然气防大学工业及环境保护的基本概况,对我国石油企业环保工作提出了建议。意大利及其他欧盟国家社会和经济平衡发展,自然资源利用与保护并重。自然保护区的环境保护法律法规健全,健康、安全、环保已成为政府、公民和企业的共同理念和行动。我国的石油企业应学习意大利等国的经验和做法,在进行工程建设和生产时,应将开发利用经济资源和保护自然资源并重的理念贯穿始终。遵守法律,在工作实际中加强对自然环境的保护。     

The new economic order and world mineral production and trade

World mineral production is dominated by the developed countries — the developing countries dominate production of only tin, cobalt, bauxite, and petroleum. This production pattern is largely the result of historical, political, and economic factors, and is not likely to change radically in the next decade. Apart from petroleum, there seems to be little opportunity for the formation of mineral-producer cartels, although there is considerable scope for constructive producer-consumer agreements. Given the pattern of world mineral production and trade, the developed countries would on the whole benefit more than the developing countries from price increases. The most acute present need is for new means of financing exploration and development of mineral deposits in the developing countries, and for means of redressing the worst imbalances between rich and poor nations outside of the commodity arena.     

LONG-TERM COPPER PRODUCTION OPTIONS OF THE DEVELOPING COUNTRIES

After petroleum, copper is the most important foreign exchange earner of the developing countries. Supply of copper from developing nations is heavily concentrated in six countries. The production strategies of these countries can, therefore, have a significant impact on world copper trends as well as on their own copper earnings. The author, former Chief Economist of CIPEC, examines the implications of two alternative growth paths for long-term copper production in these countries.     

THE STATE PETROLEUM ENTERPRISE AND THE TRANSFER OF TECHNOLOGY

This article examines the potential of State Petroleum Enterprises in the developing countries for taking a lead in transfer of technology. After examining the reasons behind the growing demands for technology transfer, the paper defines the content of this technology and the means by which it can be transferred. In spite of reluctance on the part of the developed nations and the multinational oil companies to part with petroleum technology without an economic or political concession from the developing countries, much of this technology is either in the public domain or for sale by small speciality companies. The Enterprises can buy this technology and they can contract with specialty firms for operation with their countries. Of foremost importance is the education of nationals and development of indigenous group familiar with the scientific basis and specific techniques of petroleum technology.     

Oil Funding and International Financial Arrangements

The traditional source of funds for exploration and development of petroleum resources has been privately-owned petroleum companies. However, many of these same companies have recently borrowed heavily to finance their acquisitions of other petroleum companies. This may limit the ability of those companies to finance future exploration and development efforts, particularly in developing countries. Special financial arrangements may be needed if the funds required are to be available. The form of such arrangements is discussed, and emphasis is placed on the need to reconcile the differing needs of borrowers and lenders.     

EVALUATING INTERDEPENDENT WATERSHED CONSERVATION AND GROUND WATER MANAGEMENT REFORMS1

Abstract: Conserving the watershed can help to preserve ground water recharge. Preventing overuse of available water through pricing reforms can also substantially increase the value of an aquifer. Inasmuch as users are accustomed to low prices, efficiency pricing may be politically infeasible, and watershed conservation may be considered as an alternative. We estimate and compare welfare gains from pricing reform and watershed conservation for a water management district in Oahu that obtains its water supply from the Pearl Harbor aquifer. We find that pricing reform is welfare superior to watershed conservation unless the latter is able to prevent very large recharge losses. Watershed conservation that yields net gains in combination with pricing reform may cause net losses without the pricing reform. If adoption of watershed conservation delays the implementation of pricing reform, the benefits of the latter are significantly reduced.     

Privatizing the minerals sector

The end of the Cold War presents new challenges for the dynamics associated with mineral resources development. Broader approaches are needed to help mineral rich developing countries develop their minerals sector. These countries need to embark upon programmes of policy reform and privatization in order to make their mineral resources industries more efficient and responsive to free market forces (such as supply and demand and price), and to turn mineral sector decision making over to the private sector. This article examines the use of policy reform and privatization strategies to increase mineral resource production in developing countries, thereby contributing to both developing country economic growth and developed country access to mineral supplies .     

发展可再生燃料推进减排的现状和趋势

文章阐述了发展生物燃料可实现缓解石油供需矛盾和减排温室气体的双赢目的,介绍了世界各主要消费大国发展,应用生物燃料的情况及生物燃料的发展趋势.     

Trials and Tribulations of Third World Petroleum Development: Lessons and Advice for Prospective Producers

This paper presents a variety of lessons for governments of developing countries about how to begin to operate as new oil producers in the world petroleum market. Lessons, drawn from the recent experiences of currently producing LDCs, are identified for each stage of the industry from exploration and development through procurement and supply to refining and marketing.     

Can developing countries benefit from innovative pricing in the power sector?

This study explores electricity pricing as a demand-side management (DSM) strategy, looking to the developed country experience for insights into the types of approaches currently used, their effects, and the direction in which electricity pricing is headed. The discussion should be especially useful for electric utilities in developing countries that are exploring alternatives to capacity expansion to meet current and future electric power demand. For these electric utilities, demand-side options are especially important under today's conditions in which the capital cost of new generating capacity is increasing rapidly, international funds for expanding power sectors are not expected to be sufficient for meeting projected capacity needs and environmental concerns over fossil fuel emissions have raised new questions about constructing thermal power plants.     

Pathways Towards Sustainability: The Australian Approach

Following its rise to international prominence, sustainability has become an official principle or goal in many countries. Due to contextual differences, countries have followed different paths in the pursuit of sustainability. Approachescan be classified into three categories: green planning; institutional reform; and social mobilization. None of these courses on its own is likely to achieve sustainability. Yet, countries often appear to develop a path dominated by one of these approaches. This paper focuses on Australia, sketches the extent to which green planning, institutional reform and social mobilization have been playing a role in the pursuit of sustainability, and illustrates the difficulties of developing a pathway that combines these approaches.     

Legal and regulatory aspects of financing commodity exporters and the provision of bank hedging line credit in developing countries

Exporters of raw materials and commodities in developing countries depend on the availability of hard currency pre-export financing and the adoption of pricing policies which meet the requirements of the international marketplace to produce and market their products in an efficient manner. The author has identified a number of structural obstacles which impede access both to international financing and to price risk management tools which could be overcome through relatively simple modifications in export regulations, currency controls, insurance regulations and in laws concerning title to goods.