EconPapers    
Economics at your fingertips  
 

Macro-economic Models: How to Spend Uganda’s Expected Oil Revenues? A CGE Analysis of the Agricultural and Poverty Impacts of Spending Options

Manfred Wiebelt (), Karl Pauw, John Mary Matovu, Everist Twimukye and Todd Benson
Additional contact information
John Mary Matovu: Research for Transformation and Development
Everist Twimukye: Economic Policy Research Centre

A chapter in Development Policies and Policy Processes in Africa, 2018, pp 49-84 from Springer

Abstract: Abstract With the recent discovery of crude oil reserves along the Albertine Rift, Uganda is set to establish itself as an oil producer in the coming decade. Total oil reserves are believed to be two billion barrels, with recoverable reserves estimated at 0.8–1.2 billion barrels. This is comparable to the level of oil reserves in African countries such as Chad (0.9 billion barrels), Republic of the Congo (1.9 billion barrels), and Equatorial Guinea (1.7 billion barrels) but far short of Angola (13.5 billion) and Nigeria (36.2 billion) (World Bank 2010). Using a conservative reserve scenario of 800 million barrels, peak production, likely to be reached by 2017, is estimated by the World Bank to range from 120,000 to 140,000 barrels per day, with a production period spanning 30 years. A more optimistic scenario in this study is based on 1.2 billion barrels and sets peak production at 210,000 barrels per day (see Wiebelt et al. 2011). Although final stipulations of the revenue sharing agreements with oil producers are not yet known, government revenue from oil will be substantial. One estimate, based on an average oil price of US$75 per barrel, puts revenues at approximately 10–15% of GDP at peak production (World Bank 2010). The discovery of crude oil therefore has the potential to provide significant stimulus to the Ugandan economy and to enable it to better address its development objectives, provided oil revenues are managed in an appropriate manner.

Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-319-60714-6_3

Ordering information: This item can be ordered from
http://www.springer.com/9783319607146

DOI: 10.1007/978-3-319-60714-6_3

Access Statistics for this chapter

More chapters in Advances in African Economic, Social and Political Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-04-01
Handle: RePEc:spr:aaechp:978-3-319-60714-6_3