Wednesday, July 28, 2010

Oil price in Afghanistan?

From Afghanistan points of view,if the global oil price increase,how would they react with this issue?Although they do not have oil,they do use oil alot and borrow some from other countries.What countries would like to allie with Afghanistan?Maybe America?





And also,whether Afghanistan likes or dislikes the rising oil price,what kinds of resolution would be there in order to satisfy them?Oil price in Afghanistan?
Currently, the vast majority of fossil fuel in Afghanistan is consumed by the international forces here. This also means they import the fuel with them.





However, after the overthrow of the Taliban, there was a sudden explosion of cars and cell phones in the Afghan economy. More people are able to own cars now. However, the economy is still drastically underdeveloped.





Currently, the International forces including, but not limited to, the US Army Corps of Engineers are constructing a road network throughout Afghanistan. The goal is to allow neighboring countries to ship products through Afghanistan to nearby seaports. Many neighboring countries will want to do this because the route through Afghanistan is much shorter than routes through Iran. The Afghan government will then collect tariffs on these shipments thus generating an income for the government.





Therefore, the rising oil prices will likely have a minimal effect on the Afghan economy because they will just pass that cost onto their neighboring countries that will use Afghanistan as a shipping route.





The countries most likely to bennefit from this arrangement are Turkmenistan, Uzbekistan, and Tajikistan.Oil price in Afghanistan?
Its a strange question. I don't think Afghanistan uses much oil - it isn't very developed. The government is very US friendly - since it was put in place largely by them. I would think the obvious place to get oil and gas would be the republics of the former Soviet Union.

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