Thread: Afghanistan Oil

Today I was sitting around thinking my normal business idea thoughts and started thinking about oil drilling in Afghanistan. I was wondering why many people aren't jumping at that possibility. It seems that with the country left in ruins that the vast amount of open land the country has would be insanely cheap to purchase. So my question is with the cost of land and the cost of labor (average salary only being a few hundred bucks a year) why someone looking for a new venture isn't looking there. By purchasing some acreage, having some wells drilled and pumping oil you could make a pretty good living it appears. New findings show there are over $1 trillion worth of oil reserves not counting the new findings of other natural resources. Now I know I'm not in the slightest bit knowledgable on the subject of purchasing property or mineral rights or oil drilling in that particular country. Assuming that the land including mineral rights and labor can be had for so cheap and besides the overwhelming risk of not hitting oil what are keeping businesses and investors out of this area.

Sorry of this post doesn't make any sense or is a stretch of reality. it was simply something I was wondering about and and wanted to know what you guys thought or if any of you have had this thought before.


Thanks.

OPEC.....

Afghanistan is not actually part of OPEC.

Taliban...

Originally Posted by jcatrambone

Taliban...

Well hell if it were me, knowing what salaries are there, I'd get 100 armed guards.

Because the natural resources belong to the people. If that was the case any one in the middle east would start drilling holes in their back yard???!! Do you really think you can go to a foreign country, buy a piece of land and start drilling holes and pumping oil out of the ground?

Originally Posted by MidWest

Afghanistan is not actually part of OPEC.

^^^exactly

1 trillion in oil reserves doesn't really sound that much.

Originally Posted by RAWMEAN

Because the natural resources belong to the people. If that was the case any one in the middle east would start drilling holes in their back yard???!! Do you really think you can go to a foreign country, buy a piece of land and start drilling holes and pumping oil out of the ground?

The mineral rights to what's on and under the ground are considered property of the Government. Their Government has also been auctioning off the mineral rights for plots of land for a little time now. If the rights are bought directly from their ministry of mining and the correct royalties are paid to the government I don't see the problem with it. Even if one does not choose to drill themselves they could lease the mineral rights out to a person or company that will and simply collect a royalty check.

In no way am I saying that I am going to do this or looking to do this. I was simply wondering why I haven't heard of anyone doing it yet.

I wouldn't drill in Afghanistan for the oil. It just doesn't seem like a long term investment that will yield a steady stream of profit. I think Afghanistan's strength lie in other natural resources. I just did some fact checking and the 1 trillion dollars in resources include minerals and I don't believe oil. These resources are lithium etc. Something like that would be a more profitable venture. If you were willing to take the risk/had the money.