Peak Oil Impact on developing countries
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PEAK OIL Impact on developing countries
A combination of droughts, high oil prices, and shortages is causing economic hardships in an increasing number of countries. In many places, power outages are becoming a normal part of daily life. Blackouts range from an hour or so to many hours a day, depending on where one lives.
. Short outages are merely annoyances, but as they lengthen, vital services such as refrigeration and water supplies are threatened as well as economic development.
. . Ghana’s GDP will drop by $1.4 billion this year due to electricity shortages. The country began “load-shedding” last September. .Many countries are importing large diesel generators as a quick way to increase generating capacity. These, however, are relatively inefficient and will require the purchase of increasingly expensive diesel fuel. . The problem is complicated by the need to keep irrigation pumps operating in order to insure food supplies. . Despite optimistic talk of importing LNG, pipelines, nuclear and hydro plants, these solutions are many years or decades away if they happen at all. For the immediate future, the shortages are likely to increase.
Last week an emergency government loan allowed Senegal’s power company to purchase enough fuel to avert a total shutdown of the country’s power grid. In Uganda, the government asked the parliament for $300 million to deal with the current electricity, gasoline and diesel shortages.
In India, Pakistan, and Bangladesh the blackouts are now commonplace and there is no end in sight.
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