The increasing global demand for energy has led to exploring remote and untouched natural areas. There are more disadvantages such as environmental damage, lack of infrastructure in these areas, outweigh the benefits.
On the one hand, new sources prevent the possibility of the energy shortage, leading to economic stability and increased government revenue. Meaning that the discovery of new reserves improves the economy of the country. This leads to the creation of job opportunities across various sectors. In terms of other benefits, the development of oil and gas reserves can reduce dependence on foreign energy imports, fostering energy independence. Besides, it can attract foreign investors as international companies which to seek partner with local firms to invest in the development of these resources. For example, Azerbaijan is a producer of “Azeri Light” oil, and the government explored new reserves to increase production. This effort led to significant international investment in these reserves during the 1990s, attracting numerous countries and companies to participate in the development and extraction of Azerbaijan’s oil resources.
By contrast, the primary drawback of the development of exploring fossil fuels in remote and new areas is the lack of infrastructure, which creates a serious problem in transportation. These areas are often difficult to access, requiring roads, and pipelines which increases the cost. This issue can deter the government from investing in these natural places. An example of these countries is India, several untouched reserves remain undeveloped since the logistical and economic challenges do not attract significant interest. Another disadvantage is the environmental damage with the exploration of new resources. Whenever new resources are developed, it can cause deforestation and loss of habitat.
In conclusion, while the discovery of new oil and gas reserves can bring economic benefits such as preventing energy shortages and attracting foreign investment, the significant drawbacks, including high infrastructure costs and severe environmental damage, cannot be overlooked.
