Chapter No. 2:Literature
Review
2.1OPEC and Chad
OPEC is the «Organization of the Petroleum Exporting
Countries» that was initiated in 1960 and the total number of member
countries now are 13 (Dou, Wang, Wang, Wei, & Shrivastava, 2018; Leonard,
2019; Mushemeza&Okiira, 2016; Pantsurkin, Szabo, Kraemer, & Panga,
2019; Zene, Hasan, Ruizhong, &Zhenliang, 2019). Chad is not a member
country of OPEC but it is considered as a non-OPEC oil producing country. Chad,
although is not a member country of the OPEC but they have a partnership
between the OPEC and non-OPEC oil producing countries (Ali, Tchobo, Theophile,
&Sakine, 2018; Babatunde, Sikoki, Avwiri, & Chad-Umoreh, 2019; Buono,
Gunn, Staddon, & McKay, 2020; Emigh et al., 2017; Leonard, 2019). Chad is
added recently in the group of non-OPEC countries that have a public
declaration of support.
With the combined efforts and support of the world's 30
countries that produce oil, the aim is to restore the stability in the oil
market (Djal-Gadom, Kountchou, Djossou, Kane, &Araar, 2017; D.-G. Gadom,
Mboutchouang, NadegeDjossou, Quentin, &Araar, 2017; Hassane, Hauglustaine,
& Tahir, 2017; Omeje, 2017). They also have the set target to maintain
sustainable performance in terms of producers of oil, the consumers and the
impact on the overall global economy (Ali et al., 2018; Hoinathy&Janszky,
2017; Zene, Hasan, Ruizhong, Zhenliang, & Trang, 2019).
The research studies conducted by Ali et al., 2018; Babatunde
et al., 2019; Buono et al., 2020; Emigh et al., 2017; Leonard, 2019, shows that
the access to the reserves of the petroleum products has increased the annual
oil revenues of the country. Moreover, it is also found that the extraction of
oil from the petroleum reservoirs of Chad was done with the aid of World Bank
in 2003 (Djal-Gadom et al., 2017; D.-G. Gadom et al., 2017; Hassane et al.,
2017; Omeje, 2017). Although Chad has not yet gained the membership of the OPEC
but it has applied for it and is trying to have it. This might be possible for
the country because of the increasing volume of petroleum extraction from the
oil reservoirs of the country (Ali et al., 2018; Hoinathy&Janszky, 2017;
Zene, Hasan, Ruizhong, Zhenliang, et al., 2019).
2.2 Petroleum industry and
oil reserves in Chad
According to the research studies (Ali et al., 2018;
Hoinathy&Janszky, 2017; Zene, Hasan, Ruizhong, Zhenliang, et al., 2019),
the discovery of the oil fields in Chad have made the petroleum sector as one
of the important industrial sector for the economy of the country
(Behrends&Hoinathy, 2017; Behrends, Schareika, &Bierschenk, 2019;
Kablan &Loening, 2017; Schareika, 2017). But the oil fields in the Doba
region were predicted to have the per day oil production of 150,000 barrels
through the drilling around 300 shafts. Therefore, for the extraction of
petroleum products from the oil fields of the Republic of Chad, a new project
was initiated (Behrends&Hoinathy, 2017; Behrends et al., 2019; Kablan
&Loening, 2017; Schareika, 2017). This project included the three oil
fields that have been discussed earlier, having the capacity of 300 shafts,
along with the development of three new storage stations, construction of a
treatment station and the electrical center (Djal-Gadom et al., 2017; Leonard,
2019; Mushemeza&Okiira, 2016; Zene, Hasan, Ruizhong, &Zhenliang, 2019).
According to the literature studies (Leonard, 2019;
Mushemeza&Okiira, 2016; Pantsurkin et al., 2019; Zene, Hasan, Ruizhong,
&Zhenliang, 2019), this project will aid in the extraction and treatment of
the petroleum products right around the site (G. D. Gadom, Kountchou,
&Araar, 2018; Hoinathy&Janszky, 2017; Limited, since, &Kshetri,
2020). The construction around 500 km of road was also part of the project that
will help in the transportation of the extracted and treated petroleum products
(Ali et al., 2018;
Buono et al., 2020; Dou et al., 2018; Emigh et al., 2017). The
«Chad Cameroon oil pipeline» is the main project that will be
constructed to have access to the one thousand million barrels of the estimated
petroleum reserves (Ali et al., 2018; Babatunde et al., 2019; Djal-Gadom et
al., 2017; D.-G. Gadom et al., 2017; Hassane et al., 2017; Leonard, 2019;
Omeje, 2017).
With time, the annual production of oil from the oil fields in
Chad increased and so does the exports of the petroleum products. Previous
literature studies (Abakar, 2018; Fathiha, Lo, & Mohamed, 2017; G. D. Gadom
et al., 2018; Limited et al., 2020; Macmillan, 2016; Schritt &Behrends,
2018; Sumery,
Lo, & Salim, 2017; Yorbana, 2017) show that the exports of
Chad reached to 134 million barrels by the year 2005, with an estimated revenue
of $400 million. According to the (worldmeters.com) data, there are 1.5 billion
barrels of oil reserves present in the Republic of Chad. Moreover, this amount
of oil reserves has ranked the republic of Chad as the 37th in the
world (G. D. Gadom et al., 2018; Hoinathy&Janszky, 2017; Limited et al.,
2020).
Table 1: Summary table for Chad oil reserves
BARRELS GLOBAL RANKING
|
OIL RESERVES
|
1.5 billion barrels/ day
|
37th
|
|
OIL PRODUCTION
|
114,000
|
46th
|
|
OIL CONSUMPTION
|
2,299
|
194th
|
|
DAILY SURPLUS
|
+111,701
|
|
|
NET EXPORTS
|
97,079
|
|
|
|
