Appropriate financing for petroleum development in developing countries

Journal Article · Sun Jul 01 04:00:00 EDT 1984 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol5-No3-3· OSTI ID:6608613

Agmon, T; Lessard, D R; Paddock, J L

The availability of appropriate financing is likely to be a dominant factor determining the scope and pace of energy investment by developing countries in the 1980s. Reliance on self-finance will severely limit development for most countries, but traditional external finance - credit from private banks or multilateral agencies such as the World Bank - will probably play a smaller role than it did in the 1970s. The uncertainty of oil prices is the biggest problem for countries for which oil represents a large part of the wealth, and existing mechanisms for financing oil development tend to exacerbate rather than alleviate the effects of oil price uncertainty. There are several measures that could substantially increase the availability of appropriate finance for potential oil producers, however. These include developing oil-price-linked financing alternatives by multilateral lenders and establishing an international oil development fund that combines the transfer of oil-related risks with a concessional financing element. 23 references.

• Research Organization: Massachusetts Inst. of Tech., Cambridge
• OSTI ID: 6608613
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 5:3; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
DEVELOPING COUNTRIES
ENERGY SOURCES
FINANCING
FOSSIL FUELS
FUELS
GEOLOGIC DEPOSITS
INDUSTRY
MINERAL RESOURCES
PETROLEUM
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
PRICES
RESOURCE DEVELOPMENT
RESOURCES
RISK ASSESSMENT