The Role of Law in the Exploration for and Production of Petroleum Resources

Abstract

The economic growth, strength and development of almost all the countries in the World is dependent on the adequate discovery and utilization of their natural resources. For the resources to be put to economic use, they must first of all be discovered through explorations and then production follows. The quest for these can be very tedious, capital intensive and cumbersome. It can also be source of conflicts amongst citizens and countries. The best way to curb any future hurdles in the exploration and production of petroleum resources is to pre-empt these conflicts and to provide remedies; the law has been identified as the most vital tool for this. In response, laws have been put in place which anticipates such problems and have provided the solutions to minimize any potential hurdle to the exploration and production of petroleum resources. It was discovered that without the law, explorations of and productions of the oil and gas will almost not be possible. The doctrinal method of research was adopted as it analyzed different laws at the national level and also at the international level as well. This article discussed some of the pivotal role the law play in the exploration and production of petroleum resources while enlightening the reader on the importance of the law in the field. It was recommended that parties to any agreement on the exploration and production of oil and gas should as a matter of first step have enabling laws that guide their affairs in order to avert any hindrance to their search for oil and gas.