Prospects and pitfalls of Namibia's oil and gas sector

Research output: Contribution to journalArticleResearchpeer review

Authors

  • Sören Scholvin

Research Organisations

View graph of relations

Details

Original languageEnglish
Article number101925
JournalResources Policy
Volume70
Early online date26 Dec 2020
Publication statusPublished - Mar 2021

Abstract

Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of ‘linkages’. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.

Keywords

    Global value chain, Linkage, Namibia, Oil and gas, Resource curse

ASJC Scopus subject areas

Cite this

Prospects and pitfalls of Namibia's oil and gas sector. / Scholvin, Sören.
In: Resources Policy, Vol. 70, 101925, 03.2021.

Research output: Contribution to journalArticleResearchpeer review

Scholvin S. Prospects and pitfalls of Namibia's oil and gas sector. Resources Policy. 2021 Mar;70:101925. Epub 2020 Dec 26. doi: 10.1016/j.resourpol.2020.101925
Download
@article{79e71f53087b4d698a9b630e414de2f3,
title = "Prospects and pitfalls of Namibia's oil and gas sector",
abstract = "Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of {\textquoteleft}linkages{\textquoteright}. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.",
keywords = "Global value chain, Linkage, Namibia, Oil and gas, Resource curse",
author = "S{\"o}ren Scholvin",
note = "Funding Information: The field research carried out for this article was financed by the German Research Foundation (project number: 275355279). ",
year = "2021",
month = mar,
doi = "10.1016/j.resourpol.2020.101925",
language = "English",
volume = "70",
journal = "Resources Policy",
issn = "0301-4207",
publisher = "Elsevier Ltd.",

}

Download

TY - JOUR

T1 - Prospects and pitfalls of Namibia's oil and gas sector

AU - Scholvin, Sören

N1 - Funding Information: The field research carried out for this article was financed by the German Research Foundation (project number: 275355279).

PY - 2021/3

Y1 - 2021/3

N2 - Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of ‘linkages’. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.

AB - Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of ‘linkages’. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.

KW - Global value chain

KW - Linkage

KW - Namibia

KW - Oil and gas

KW - Resource curse

UR - http://www.scopus.com/inward/record.url?scp=85098118133&partnerID=8YFLogxK

U2 - 10.1016/j.resourpol.2020.101925

DO - 10.1016/j.resourpol.2020.101925

M3 - Article

AN - SCOPUS:85098118133

VL - 70

JO - Resources Policy

JF - Resources Policy

SN - 0301-4207

M1 - 101925

ER -