Stranded Gas and Abundant Gas Resources - Research Paper Example

 Stranded Gas and Abundant Gas Resources Introduction Enormous revenues ensuing from natural resources ought to spawn wealth for any economy, boost economic progress and considerably reduce poverty. The logic behind an assertion of this nature can be founded on the unpretentious common sense that despite the fact that money cannot buy happiness, it is a good down payment. Moreover, the same can be rooted on a number of constituents of economic growth and development theory. For instance, a good percentage of individuals have come to believe that low levels of investment in most cases are held responsible for constrained development, what is commonly known as capital fundamentalism (Stevens 2). On the other hand, there is that group of individuals that hold to the belief that the aspect of saving more does not necessarily amount to investment and the subsequent growth, since saving in domestic currency may not be in a position of allowing capital imports which call for foreign exchange. In addition, it has for a long period of time, been held that for the poor and developing countries to come out of the self-feeding poverty circle, they have to be in receipt of a considerably big push in their economic development strategies. And as a result, huge windfall revenues that do accrue to an economy from oil, minerals or gas projects ought to overcome both capital and foreign exchange constrains and generate the above mentioned necessary push (Wright and White 1). The interest of oil and gas industry in the developing countries is rapidly increasing following the borne better understanding of this geologic formation. To be particular, crude oil and natural gas are likely to offer significant contributions to the economies of the developing countries in the event that is prudently exploited. Besides, in the event that these natural resources are so exploited under the right circumstance, it is hoped that they will catalyze the growth and development of these countries (McGuire et al 4). On the contrary though, a great percentage of these booms from the gas resources in the developing countries have kicked off vibrant growth processes only to limited extents. This has been so due to a number of reasons which have seen the realization of the gas resources-related economic growth and development to be not in its entirety. Some of these factors include such as price violations and the price adjustment asymmetry, inflexibility in product, labor and asset market, rising exchange rates and wages (which have seen the kicking out of import- and export-competing industries) and the persistent engagement of elites in activities geared towards making profits. All these factors have led to what can be termed to be a resource curse (AfDB 78). This paper, however, gears towards availing the significance and the merits attached to the prudent exploitation of gas resource in developing countries, since in some developing countries such as Algeria, Trinidad and Point Lisas, there has been a revival in the exploitation of these resources. The paper also avails a detailed evidence of how natural gases are a blessing to these countries as well as how the revenues so obtained from the large-scale natural gas resources can be transmitted to those economies which are performing poorly (Maleki and SiAbdelhadi 3). The principal reasons as to why this issue ought to be addressed are quite numerous. For instance, in the developing countries, these sources have had a tendency of developing at a snail's speed and they are less diversified. Besides, the countries have all through reported greater economic volatilities, with poorer performance in their social welfare. Due to heightened corruption and less transparency in the exploitation of the gas resources, these countries have recorded higher levels of inequality and poverty (LaTourrete 56). Literature Review Undeniably, the economy is exceedingly dependent on the fortunes that come from the hydrocarbon sector. Several researches and studies have evidenced that the economies of countries with natural gas resources (which are part and parcel of the hydrocarbons) and minerals have been performing poorly as compared to their counterparts who are at a level economic development stage but with no hydrocarbon resources (McGuire et al 8). This scenario has borne the term resource curse. In addition, those countries which are considered to be rich are more predisposed to bends in non-resource sectors of their economies, and more especially in resource boom periods. A situation known as the Dutch disease, where both wages and real exchange rates are persistently rising thus driving out the export-competing and import-competing industries which had been in existence (AfDB79). Those countries, whose economies are hydrocarbon-dependent, such as Trinidad and Tobago, are highly exposed to the above-mentioned Dutch Disease (the seers' syndrome) and the resource curse. It is therefore imperative presenting an insight on how using both stranded gas and abundant gas resources in these industries- flared as part and parcel of oil production targeting the export market- can help in hurrying up industrialization of the rural communities and the host countries in which these resource are found (AfDB 79). The existent body of empirical work highlighting the relationship between natural resources and poor economic performance is considerably large. According to this body of empirical work, this aforementioned relationship has, in most cases, been a negative one. For the greater percentage of this evidence, it is crystal clear that it is in support of the resource curse mentioned in an earlier paragraph. Nevertheless, such work is not free of criticism. Apart from the negativity that development and exploitation of gas resources is attached to, it is also imperative highlighting the impact that the same has on poverty levels in the developing countries (Auty 37). This papers is therefore aimed at availing detailed information on whether these countries can be ushered in hurried industrialization in the event that the gas resource get to be exploited. It also addresses the issue of whether development of these resources is a principal source of conflict within the societies and countries in which they are found and whether or not they retard political change. Even when there is an equitably convincing proof of the presence of resource curse, this literature also affirms that it is possible for these developing countries to manage the same and instead receive rewards from the development of the gas resources. A research carried out in the recent past makes an effort of establishing which such countries might have been and makes a conclusion that mineral rich countries are on the path to success. Consequently, this research paper contends for the letting go the term resource curse and instead using the term resource impact and thereafter making a determination of whether it will be a curse or a reward to the developing countries (Nelson and Behar 4). Benefits of Developing Gas Resources The development of gas resources in the developing countries will definitely have noteworthy economic impressions on the economies of these countries. Exploring, leasing, drilling and the subsequent exploration of these natural gas resources will directly create thousands of well-paying jobs to the local communities as well as for other professionals who may not necessarily be from the communities surrounding the natural gas sites and/or plants. On the other hand, the same is going to stimulate indirect employment since the support industries will be in need of employees (Stevens 7). All these individuals will earn some wages, while households will spend royalty income. The economic stimulus from the development of these natural gas resources and the production in the gas industries will definitely increase the country's gross domestic product (GDP), tax receipts and state income. GDP refers to the measure of the value of goods and services produced in a country. Markedly, there is a strong correlation between changes in GDP and changes in oil and gas output, measured together in terms of barrel of oil equivalent (BOE). GDP rises and falls with respect to the upward and downward movement of oil and gas output (Wright and White 8). In the event that these developing countries become both producers and exporters of natural gases, they stand to benefit once the prices of the same products shoot. According to previous studies, it has been evident that net oil-exporting countries, in Africa and elsewhere, have had a number of economic advantages thus facilitating the creation and sustenance of long-term wealth within the country. The same is expected to happen in Trinidad, Point Lisas and even Algeria. The gas resources are to be converted into the various forms of capital, including financial, human and infrastructural capitals. In this way, they will present better sustainable livelihood opportunities, not only to the locals, but also to the country at large (LaTourrete 60). Development of the gases resource is also in the offing of earning these countries revenues and foreign exchange. For instance, between 2000 and 2005, natural gases and fuels accounted for 65% on the total increase in export value among the oil exporting countries in Africa. Besides, the share of the same in Africa's total export has increased from 12% in 1990 to almost 90% in 2006 (AfDB 94). In the past five or so years, buoyant price increments of gas, minerals and oil have seen resource- rich countries record an increase on their exports of natural resources, thus leading the sustainability in revenues for these countries. These increased revenues are a momentous source of income for these countries and this does demonstrate the significance of gas resources (being part and parcel of the natural resources) in the developing countries' output growth and capacity to spawn export revenue. In other developing countries in Africa such as Angola, Equatorial Guinea, Nigeria, Gabon and Congo, revenues obtained from oil and gas exports were more than half of all the revenues. If expressed in term of the United States dollar, it is thus evident that between 2002 and 2006, revenues from oil and gas have increased by about three and half times (AfDB 95). From this statistic, it is noticeable that those countries which are dependent on oil and gas exportation highly dependent on the same in terms of revenue and as thus, there is a need to institute judicious fiscal discipline so as to minimize the adverse impacts of the boom-bust cycle of the gas and oil prices. Another of the major benefits or concerns of the development of the gas resources in developing countries is foreign direct investment (FDI). As a matter of fact, a great percentage of the foreign inflows are channeled to the exploitation of the natural resources, and more especially gas and oil exploitation. This means that the oil and gas sector has been receiving the lion's share of the foreign direct investment. Through FDI, these countries are standing on the advantageous side of enjoying favorable macroeconomic conditions, including moderate inflation, robust economic growth, external current account surpluses and external debts and fiscal deficits which are manageable (Nelson and Behar 11). These conditions can thereafter be utilized in realizing both social and economic development as well as raise the countries' spirits of economic diversification. Illustratively, for the last nine years or so, FDI has been increasing by a significant percentage. Without a doubt, foreign capital has been playing a central role in the economies of the developing countries with gas resources since 1992. Since foreign investors with be attracted to work in the developing countries in the event that the gas resource are developed, these developing countries will stand to benefit even technology. The foreign investors will come with them new expertise, which is likely to infiltrate to the locals and the host country. Moreover, it is undeniable that in the process of exploiting the gases resources, the foreign investors will also develop the country's infrastructure. This will be another boost towards the industrialization of the country (Auty 39). Development of gas resources is also a key player in wealth creation. The facilitation and exploitation of oil and gas resources is underpinned by three factors, namely; technology, crude oil prices and the fiscal system. Although the legal framework exemplified in the fiscal system, in collaboration with political, geographical and geological factors may deter the exploitation of gas resources by foreign investors, there is a stiff competition in the regime (Maleki and SiAbdelhadi 13). This competitiveness is essential in determining the amount of upstream foreign and local investment in not only the exploration, but also the consequent discovery and production of the same resources by multinational oil companies. Reportedly, the rent that comes from oil and gas exploitation is considerably large. This has over the years borne a contention in the sharing of this sizable rent between the governments of the oil-producing and oil-consuming countries and the oil and gas companies. Notably the governments of the producing as well as the consuming countries have made significant efforts to extract a good-sized proportion of the rent (McGuire et al 34). Another of the benefits of the gas development is the birth of the petrochemical industries. Markedly, the petrochemical market has over the years formed the basis of most of the chemical industries, since it avails the primary building blocks for the great percentage of the chemical products. For example, olefins (comprising of propylene, butadiene and ethylene) and aromatics (comprised of toluene, benzene and xylene) are some of the products resulting for the exploration and development of gas and are used in end-user markets such as plastics, paints, fertilizers and explosives (AfDB, 98). In a recent survey carried out on the significance of the refinery capacity in Nigerian petrochemical markets, it has been evidenced that its worth amounted to USD 14.03 billion. The ever increasing demand of the petrochemical products is highly being driven by the end-user segments, which comprise of the considerably well-developed manufacturing sector availing a very ready market for the petrochemical industry's end products. Additionally, the development of the petrochemical industry has seen countries, such as Nigeria, save on its financial resources which would have otherwise been used in the importation of various petrochemical products (Stevens 25). Gas development it expected to enhance the refinery-capacity utilization (which is presently approximated at 40% of the country's full capacity). The outcome of this development is an increase in the petrochemical yields thus reducing the necessity of the developing countries to import the same. Notably, the development and the subsequent restructuring of the oil and gas refineries in the developing countries are in the offing of increasing the capacity utilization of the refineries. This will therefore lead to major improvements in the petrochemical market since there will be an improvement in crude (Wright & White 16). Following the growth of the petrochemical industry leading to the availability of feedstock, these developing countries will be compelled to make a replacement of their other natural sources such as molasses, fats and coal. Natural gas will instead provide the principal feedstock used in the manufacture of the aforementioned aromatics and olefins. In earlier decades, oil and naphtha were the world's main sources of chemical production. With the development gas however, these chemical industries are recorded a shift from oil to gas. This has not only helped address the issue of environmental and atmospheric pollution, but has also helped the developing countries save on some costs (McGuire et al 102). The exploration of unconventional gas resources, commonly referred to as the shale gas, has also facilitated the production of considerably huge volumes of natural gases, natural gas liquids and ethane. Resultantly, this has led to the ready availability of gases for domestic use at relatively lower prices. At the present, development of gas resources has led to the measurable decline in the prices of gases. This has resultant seen through the lowering of energy costs thus availing a larger feedstock advantage to almost all producers of natural-gas based products such as ammonia and methanol. In addition, the larger ethane volumes so obtained as a by-product in the development and production of unconventional gas has greatly changed the cost position of cracker operators in the developing countries from their traditional inferior rank to a better global rank (AfDB 97). The development of gas resources has also seen through the availability of gas and its subsequent rampant use in homes. This has been the cases as a result of the decreasing prices of the natural gases, making it available to each household. Once each and every household engages in to the utilization of natural gases for the various household cooking activities, they will not only have advanced from the traditional cooking modes, but also will lessen negative environmental impacts of using other sources of energy in cooking such as charcoal (Auty 43). Development of gas resources is also a key player in wealth creation. The facilitation and exploitation of oil and gas resources is underpinned by three factors, namely; technology, crude oil prices and the fiscal system. Although the legal framework exemplified in the fiscal system, in collaboration with political, geographical and geological factors may deter the exploitation of gas resources by foreign investors, there is a stiff competition in the regime (Maleki and SiAbdelhadi 13). This competitiveness is essential in determining the amount of upstream foreign and local investment in not only the exploration, but also the consequent discovery and production of the same resources by multinational oil companies. Reportedly, the rent that comes from oil and gas exploitation is considerably large. This has over the years borne a contention in the sharing of this sizable rent between the governments of the oil-producing and oil-consuming countries and the oil and gas companies. Notably the governments of the producing as well as the consuming countries have made significant efforts to extract a good-sized proportion of the rent (McGuire et al 34). In majority of the oil and gas producing, numerous upstream arrangements have been put in place. Nonetheless, the major arrangements are three in number, and these comprise of joint ventures, production sharing arrangements and service contracts. All these arrangements are geared towards wealth creation. In the joint ventures, state oil companies and multinational oil companies do enter into partnerships, with these parties sharing the risks of exploration and production proportionally in respect to their equity share. The revenue so obtained from the production of gases is also shred on the basis of these equity shares. Ordinarily, it is the state oil companies which do enjoy the greater share in the joint venture. This host country can therefore use its share to fund various development projects within its boundaries (McGuire et al 135). The sole problem emanating from this kind of a relation (on the side of the multinational oil companies) is that here is a delay in the contribution of the state oil companies towards the joint venture costs in exploration and production. The relation in the production sharing arrangement, on the other hand is a bit different from that of the joint venture. In the production sharing arrangement, the multinational oil company is the one that caters for both the exploration and developments costs (Wright and White 16). In the event that no oil or gas is found in commercial quantities, the multination oil company solely bears the risks concomitant tot the exploration and development. On the other hand, on the commencement of oil and gas production and their profitable extraction, the profit so realized is shared between the government (that is the state oil company) and the multinational oil company. The multinational oil companies have a preference for this option since it gives them significant sovereignty in operations. Moreover, there is a speedy recovery of upstream investment. Oil-prospecting and/or oil-producing countries also campaign for the production sharing arrangement since this option abolishes the necessity for the government to commit the scarce funds blunt for the exploitation of the oil and gas resources (LaTourrete 57). Service contract is the third major type of agreement in wealth creation. In this agreement, a company is contracted to carry out specific upstream activity, for instance, seismic or drilling survey. This contracting company is specifically paid for this service. Alternatively, service contracts can the form of risk service contract. In this sub-type, an oil and gas company carries out the exploration risks and thereafter paid for the service it so provides at a fixed rate of return, but only in the event that oil and natural gas are found. This company is reimbursed for the costs at a settled at markup over the investment in the oil and gas so discovered (McGuire et al 54). Effects of Developing Gas Resources However, the developing countries have not evaded unscathed from the resource curse that characteristically plague resource rich countries. Although it is thought to be a blessing rather than a curse in the developing countries, gas resources and its related high oil prices have been held responsible for causing principal social, economic, political and environmental problems. Among the leading dilemmas of natural gas resource abundance is its likelihood to pervasively lure a country to be negligent of its human capital development. The high levels of natural gas resource revenues are in the offing of diverting attention of the country from wealth creation and diversification (bracketing in human and institutional development) (AfDB101). In both the medium and long term, the logical expression of this likely connection between abundance of resources and neglecting of human capital development would be reflected in a relatively low basic human development status. According to a comparative measure of life expectancy, education, literacy and living standards in all countries of the world availed by the United Nations Human Development Index, it was evident that oil and gas producing countries dominated the low end of the human development index (HDI). While the resource-rich countries recorded a HDI of 0.51, oil-exporting countries had a HDI of 0.55 (AfDB 103). Another of the frequently highlighted problem of gas resource-rich countries is the ever increasing income inequality. Ordinarily, oil and gas, as well as mineral industries are more often than not characterized by their ‘commune nature'. This is a nature with countable forward and backward acquaintances into the country's economy. In the process of exploration and production, the above enlisted industries usually employ a fairly small number of well-paid and highly-skilled taskforce. In addition, they have tendency of importing majority of their inputs (Auty 39). Additionally, there is a high risk that public expenditure in the course of a resource boom is likely to make worse inequality. For instance, a move to concentrate expenditure in the formal sector in cities and towns (making rural household to stand on the harming side due to skewed distribution) and placing in order the interests of the elites and those classes of individuals in the society which are wealthier. As a result of these predispositions, societies have a tendency of identifying the production and exportation of natural gas resources with the interests of the rich in the society. It is also worth noting that income inequality in higher in resource-rich countries than the resource-scarce ones. Nonetheless, it is equally worth noting that income in mineral-rich countries is more pronounce then in the gas and oil-exporting countries (LaTourrete 58). According to some empirical work, abundance in gas resources has led to poor performance on per capita gross domestic product growth. This was the case between 1985 and 1997. Moreover, during this period, real oil prices drop from USD 42.70 to USD 20.04. Despite the fact that oil and gas is significant in a country's GDP, it is surprising that per capita GDP records a fall. Markedly, the economy of these developing countries is exceedingly dependent on the affluences of the hydrocarbons. Several studies have already documented that the economies of the developing countries with hydrocarbons and/or minerals- as compared to those without the same resources- have been performing poorly (AfDB 104). This has led to the Dutch Disease. This disease or syndrome causes a contradiction of the country's tradable sector. Due to the various subsidies put in place for purposes of protecting the non-resource tradable exposed to weakening as a result of a boom, the problem of the sector is aggravated thus making the economy become unsustainable. In addition, the Dutch Disease is characterized with the leap frog effect. This effect is explained as the tendency of the governments of the developing countries to miss the labor intensive phase of industrialization and instead move directly to the heavy capital intensive phase with negative tradable sector effects. Other scholars have come on board to address the issue of learning by so doing the context of the seers syndrome. They have assumed since learning through doing benefits solely accrue from tradable, a contraction in the gas sector is likely to amount to lower productivity (AfDB 106). Development of gas resources can also have adverse environmental effects. For instance, in the event that the exploration and production companies to not take the necessary pollution control measures, gas resources exploration and development is likely to lead to air, water and land pollution. Oil and gas development, whether stranded or abundant, pose inherent environmental as well as public health risks. The extent of these risks associate d with the development of these resources may not be known, but in general, the activities involved in the process amounting to air pollution include such as engine exhaust resulting from the increase truck traffic, daily emissions from diesel-powered pumps which are used for powering the equipment, gas that is burned or even released directly into the atmosphere resulting from the various operational activities as well as unintentional emissions of pollutants from equipment which are faulty and/or the temporary areas of storage (Auty 41). In addition, other studies have documented that the exploration and development of gas resources poses great risks to water quality from the contamination of the both surface and ground waters. This pollution is so realized through erosion resulting from ground disturbances, releases and spills and other fluids in the exploration process. Furthermore, this erosion may be as a result of underground migration of gases and chemicals. For instance, tanks used for the storage of toxic chemicals or even pipes and hoses used in conveying wastes to the tanks may leak. Alternatively, impoundments containing wastes may at some point overflow due to extensive downpour. Leaked, released or spilled wastes and chemicals could find its flow to surface water bodies or even insinuate to the ground thus reaching and at the same time contaminating aquifers and sub-surface soils. In addition, the development of gas resources poses a great risk to wildlife habitats and land resources. This threat is so borne through the construction, operation and maintenance of the infrastructure necessary for the development of oil and gas resources. The use of toxic chemicals and the underground injection of fluids are equally risky (Wright and White 16). Statement of Purpose Can rural communities and host countries be industrialized at a fast rate by using stranded gas and abundant gas resources currently flared as part of oil production with the balance mostly targeted to the export market? Research Method Based on a case of a sub-Saharan country, for this study Nigeria, it is worth noting that for the developing countries, there is a great reliance on natural resources such as oil and gas and arable land for their development. This therefore highlights the presence of an intimate relationship between the country's natural gas resources and its economic development as well as the impact that mismanagement of these resources might have on the economy of the country (LaTourrete 58). This research therefore makes use of a qualitative research approach, which entails the collection of data through interviews and surveys of various oil and gas companies as well as government officials. This research approach permits the collection of both extensive and in-depth information as regards to the impacts that exploration, development and production of the gas resources will have on the local communities within which these resources are found as well as the host country at large (LaTourrete 58). This methodology also gears towards determining the view of the government on the role that international and non-governmental organizations play in the development of the natural gas resource and the impacts of each on the society. The reason as to why this Nigeria is rested on in this research is that besides being a developing country, its oil and natural gases resources are quite numerous. Additionally, the country is quite reliant on these resources for its economic development. Qualitative research methodology in this research is more advantageous since it will involve inquiry and the subsequent analysis of words. Additionally, it will bring on board such cases as personal experiences, studies, interviews, life stories as well as visual text in presenting a detailed description as well as better getting to understand the impact that development of natural gas resources has had on the members of the local communities and the host country at large. Besides describing the various events and the experiences and perspectives of different people, qualitative research method also uses inductive reasoning in the development of likely theories explaining the same (LaTourrete 59). As earlier mentioned reasons, Nigeria has been selected for this study because it has many and highly valued oil and natural gas resources. The very initial step in this research methodology is the identification of the research questions which thereafter avails assistance in determining the type of research method to be utilized on the basis of the available data and resources. The qualitative method so embarked on offers a detailed framework through which the study is to take into account the assessments and opinions obtained from various quarters in relation to the impact that the development of the gas resources has on the locals and the host country. The data collection tool used in this research is the interview method. This therefore, called for the preparation of an interview guide consisting of various questions on the areas of concern (Maleki & Abdekhadi 20). Since this interview guide was semi-structured, it allowed participants to be open-ended in their talk as concern to how the development of gas resources has impacted them. Notably, the guide was made of three parts; with the first part aiming at determining the participant's knowledge and understanding of the natural gas resources in the country. While the second part focused on how this development process impacted the locals and the host country, the third part was geared towards identifying the role of the international and non-governmental organizations on the development of these resources (Auty 44). Prior the commencement of the interview process, the research protocol was submitted to different local at different locations within the country where these natural gas resources where situated. In the selection of the sample, two main sampling methods were used; probability and non-probability sampling methods. A combination of snow-ball and convenience non-random sampling methods was used, where the samples so selected were based on their accessibility and availability as well as recommendations from various managements of the companies. The time taken for the interviewing totaled to three weeks, where employees in the oil and gas companies as well as locals within the vicinity of these companies being interviewed. Prior the interview, a cover letter informing the participants of the interview had been send to them and they had already signed the same thus declaring their consent (LaTourrete 59). These interviews were recorded in a micro tape audio recorder as well as hand-written notes made. Each interview time took between 45 minutes and one hour. In the analysis of the data collected, the interview audio recordings were transcribed verbatim into a number of word documents, which were later verified against the tapes for purposes of ensuring that no errors were so made during the process of transcription. In addition, the filed notes as well as the transcripts were thoroughly scrutinized so as to develop themes and sub-themes within the collected data and at the same time avail a more extensive understanding of the data (LaTourrete 59). Besides, the transcripts were categorically coded so as to identify the main concepts, keywords, patterns and themes within the data. During the process of coding, like themes and concepts were grouped to avail the researcher with a conceptual map of the dataset in its entirety. Moreover, charts and tables were created in the analysis process and this was aimed at determining the relationship between the concepts and the themes. Pros of the Research Methodology Owing to the fact that qualitative research is rooted in social science, anthropology and psychology, it avails a means through which human behavior and the interactions between humans within the social world can be studied. It also makes use of personal experiences, studies, cases, visual texts and interviews in describing and understanding the lives of people. It also makes use of inductive reasoning in the development of the likely theories. It is through this research methodology that the collection and analysis of information as pertains to beliefs, attitudes and opinions of different peoples is brought on board (LaTourrete 60). Moreover, data collection and analysis in this methodology are conducted simultaneously, with the approach beginning with general questions which act as a guide of the research. In the collection of the data, theoretical concepts are not only identified, but their relationship between the data and the concepts are established. The coding so carried out in this research approach also allows the researcher to envision analytical patterns with the data thus facilitating the analysis of the collected data. Cons of the Research Methodology Qualitative methodology however, costs time and money. Huge monetary resources have to be incurred in the preparation of the interview questions. In addition, carryout out pre-visits, purchasing the audio tapes and procuring other necessary stationery equally calls for financial implications. Besides, all the above activities are time consuming. Face-to-face interviews can prove to be both intrusive and reactive. Since respondents are inhabitants of different places, it can be difficult and expensive locating respondents in the event that callback may be required. There are some cases where the population may be non-literate or even illiterate. This makes the research methodology useless ((LaTourrete 60). Issues for Further Study The methodology presented in this study is a representation of an initial step toward the objective of broadening the scope assessment of energy resources in efforts to help make improvements in decision making. The approach actually represents a measurable change in the manner in which assessment of resources are carried out as well as how the same can be utilized for purposes of informing policy. In this line of thinking, this methodology can be seen as preliminary in a number of aspects and as thus compels continued development so as to progress its utility. Areas that further development ought to focus on include such as the development of environmental measures, refinement of the apposite scale applicability and a move to better incorporate the methodology into the process of decision making. 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