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The Importance of Oil and Gas Resources for Developing Countries The Importance of Oil and Gas Resources for Developing Countries

The Importance of Oil and Gas Resources for Developing Countries

Why Developing Countries Need Oil and Gas Resources

Developing countries need oil and gas resources to meet their needs for affordable and reliable energy, but that doesn’t mean that they shouldn’t be incentivized to transition to cleaner forms of energy.

Energy demand is increasing around the globe, and developing countries are a significant driver for that increase. Some experts have argued that developing countries should primarily rely on wind and solar power to meet their energy demand, and that they should not be allowed to develop oil and gas resources. However, oil and gas have the potential to play a key role in the energy transition, especially in developing countries where access to affordable and reliable energy is crucial to economic development, and where it is imperative to move away from dirtier energy sources, like coal or diesel, as well as polluting cooking fuels like charcoal, wood, or kerosene. 

Countries in the Global North “are responsible for around half of all emissions since the Industrial Revolution,” while countries in the Global South have “contributed far less to global warming… [and] have had a less equal share in the direct benefits of fossil fuel use.” Energy access and use correlate to higher levels of gross domestic product (GDP), according to the World Bank. Disallowing developing countries to rely on fossil fuels as they work to grow their economies and transition to cleaner energy sources merely perpetuates economic disparity between the Global North and South.

As developing countries work to transition to clean energy, there is a short- and medium-term need for oil and gas to meet the demand for affordable and reliable energy. For example, in sub-Saharan Africa, approximately 600 million people lack access to electricity, which severely limits access to communication and restricts economic activity to daytime hours. Oil and gas resources are cleaner than coal, and they can provide electricity and drive economic development. At the same time, countries in the Global South can explore ways to transition to cleaner energy sources like wind, solar, and nuclear power. 

Indoor pollution and access to reliable and affordable cooling mechanisms are also crucial energy issues in the Global South. Gas stoves can replace cooking fuels like charcoal, wood, and kerosene; the indoor pollution that results from using these types of cooking fuels “is a leading source of carbon emissions and kills some four million people each year.” Increased electricity access can also spur the increased adoption of electric stoves, which are even better for indoor air quality than gas stoves. 

As the world faces the challenges of climate change, including heat waves and global warming, demand for affordable cooling is increasing. The International Energy Agency estimates that only fifteen percent of the 3.5 billion people living in hot climates owned air conditioning units in 2021, noting that heat-related deaths are on the rise globally. Gas-powered air conditioning units can operate independently from the electricity grid.

This is not to say that fossil fuels and clean energy technology are an “either-or” proposition. Countries and regions in the Global South differ in their needs and priorities. Focusing on fossil fuels that are produced as cleanly as possible can be accompanied by the increasing use of clean energy technologies as is feasible to ensure energy security.

Given their disproportionate responsibility for fossil fuel emissions, countries in the Global North should be the first to decarbonize their energy systems, both on and off the grid. Countries in the Global South should focus on achieving energy security while prioritizing the movement away from dirty energy sources—especially coal and biomass cooking fuels—in the short- and medium-term, while building out, with the financial help of the Global North, the capacity for clean sources of energy.

To Read the Con Side of This Debate, Go Here.

About the Author: Richard L. Morningstar

Ambassador Richard L. Morningstar is the founding chairman of the Global Energy Center and a board director at the Atlantic Council. He served as the US ambassador to the Republic of Azerbaijan from July 2012 to August 2014. Prior to his appointment, he was the Secretary of State’s special envoy for Eurasian energy. From June 1999 to September 2001, he served as United States ambassador to the European Union. Ambassador Morningstar received his BA from Harvard in 1967 and JD from Stanford Law School in 1970.

Image: Shutterstock/Deemerwha studio

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