Oil exploration: Qatars move is not enough, Lebanon should be transparent

3^min

Economists interpreted Qatar's move to join the oil and gas exploration consortium in Lebanon positively, saying it is just the first of many positive measures to come.

Furthermore, some sources underlined Doha's desire to become more and more involved in the Lebanese economy, underlining its large financial reserves and strong ties with many countries around the world.

The entry of a Gulf state into this field in Lebanon carries many important connotations, especially since Lebanon's relationship with the Gulf states has been spoiled by many tensions in recent years.

This important move is not enough

The Lebanese, and their leaders in particular, must allow the process to run its legal and executive course through a defined program without seeing the situation as a matter of personal benefit if they want their country to benefit from the outcomes of gas extraction.

Economists asserted that Lebanon must show transparent dealings with this file to dispel prior perceptions of Lebanon as a corrupt nation where politicians compete for personal gain and brokerage.

Yet, this is insufficient, as any new government must have ministers with clean records who are responsible for the energy, finance, and works sectors to make sure that oil revenues reach the treasury and are placed in an independent special fund, as well as an agreement among its members on how to invest these monies.

When will the results of oil and gas extraction appear?

After the exploration process, Lebanon will need three to four years for production before selling, assuming the deadlines are met.

And when will we see positive effects on our economy?

Of course, during the exploration process and even before investment, it will be reflected in an improving exchange rate and increased economic confidence, as the economy will be viewed as being founded on oil wealth that boosts its value.

Extracting oil and gas will then be an "economic oxygen dose" for Lebanon that helps boost the economy, assuming a transparent program is adopted. And Qatar's step is a guarantee unless the Lebanese lose Qataris' confidence.