Cambodia has become the center of worldwide attention after its rich oil and gas reserves were discovered offshore. It is estimated that 2billions barrels of oil and 10 trillions of natural gas are reserved. The oil extraction will be begun in 2009, giving this developing country both pros and cons.
The advantages are easily comprehensible. The revenues received from oil and gas extractive factories will be immense which are 1.7 billion U.S dollars annually. This large amount of money will be further served for the development projects in Cambodia and is believed to double the Cambodian GDP (Gross Domestic Profit) which will lift millions of Cambodians out of poverty. Besides poverty reduction, Cambodia will see a greatly fast economic diversification and meanwhile will transform itself from a fuel importer into an influential energy player. Cambodia will also become an industrialized country with more job opportunities for local people, especially in the field of mine and energy engineering. Last but not least, Cambodian oil production will dramatically decrease the local petrol price which is a vital factor to attract foreign investors in various aspects.
Despite the positive impact, there is also a big concern about how the revenue will be used. It is fearful that the oil extraction will only serve to a small powerful group and thus create more disparity between the rich and the poor.
In conclusion, the oil reserves will benefit significantly to the development in Cambodia only if they are used solely for the sake of Cambodian people.
BY SAMBATH AMRAK VIPASINY
Freshman at RUFA (Architecture and Urbanization Dept) & IFL (ISP)
