As Lebanon is added to the global oil and gas map, there is a perception that the nation may have finally hit the jackpot. Potential oil and gas wealth, however, may take some time to materialize, and there is a danger that it may be squandered long before all Lebanese citizens, regardless their political affiliation, can enjoy it.
Oil and gas resources are nonrenewable, as such, their extraction is similar to the liquidation of an asset: Once extracted and sold, they are permanently lost. This creates an imperative for the government to encourage the sustainable development of these resources by establishing an institutional framework that provides enduring social and economic benefits for the state, and so for the country’s current and future generations, while encouraging investment in the sector.
It is premature to put any value on Lebanon’s potential hydrocarbon riches as many uncertainties remain and no discoveries have yet been made. Until a discovery is made, all estimates – whether those of the Energy Ministry or the U.S. Geological Survey – fall under the “resources” category, which encompasses both resources that can be technically recoverable and those that cannot be recovered.