Paper short abstract:

Understanding of oil production and distribution beyond project visioning to implementation is critical, yet such studies are rarely conducted. The proposed study seeks to investigate costs and benefits analysis of crude oil production, refinery, and pipeline development at the LAPPSET corridor.

Paper long abstract:

Oil production, refining and distribution projects through pipelines are associated with both positive and negative externalities. Understanding of oil production and distribution beyond project visioning to implementation is critical to policy makers. Yet, studies to inform such decisions are rarely conducted. While there are upcoming studies that seek to analyze how visioning, institutional context and local knowledge that informs current & proposed development of energy projects in rural Sub-Saharan Africa. Quantitative analysis of the implementation element of such project’s visions are lacking. The proposed study seeks to addresses this gap and narrows the focus to investigate costs and benefits analysis (CBA) of crude oil production, refinery, and pipeline development at the LAPPSET corridor.

The proposed study offers a joint study on the costs and benefits analysis (CBA) of crude oil production, refinery, and pipeline development at the LAPPSET corridor. Previous studies globally have focused on one component on value chain analysis of crude oil separately: either on production, refinery, or pipeline development. Second, empirical studies on externalities of oil production, refining and on pipeline development have either focused on positive or negative externalities, with some focusing on only direct effects and others lacking comprehensive analysis of both direct and indirect effects. Third, this study deploys the use of CBA approach which is both suitable for appraisal of projects yet to commence and for evaluation of projects that a have been completed. Lastly, sensitivity analysis lacking in many studies will be undertaken to establish the economic value and societal welfare implications.