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Solution to oil crisis.....from a layman

George Muchiza

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The oil crisis has been raging for some and the worldwide lockdown due to the coronavirus pandemic has not helped the demand side of oil production. If anything, the situation has exacerbated. 

With demand so low, almost all producers are faced with one common problem of storage. The cost of which is threatening the viability of the business.

I have a solution or suggestion to help stimulate demand.

While there are issues of oversupply,low demand and sub economic prices in USA and other places. The situation is actually the reverse in most Southern African countries. Refined oil products are in short supply and will always be in demand for a very long time to come. The reason is simple,their economies still rely heavily on fuel for most of their economic and social activities 

Setting up refineries on the shores of a few selected strategic countries to process fuel for massive onward inland distribution will be a worth investment. This can be enhanced further, in development stages, by investing in pipelines from the shores direct to the consumer. 

This not only assures efficient delivery but satisfying the ever rising demand in this part of the world. 

This maybe a layman suggestion but can swing things now and in the future. 

I am available to share more logistical information on this including more importantly, the various business models that can be adopted to make this profitable and sustainable. 

Regards 

gmuchiza@ymail.com 

 



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