OIL EXPLORATION AND ECONOMIC WELFARE IN UGANDA: A CASE STUDY OF KAISO SUB-COUNTY HOIMA DISTRICT

ABSTRACT

The main objective of the study was to investigate the impact of oil exploration on Economic welfare in Kaiso sub-county and specific objectives were; to determine the contribution of oil exploration in kaiso sub-county, to determine the level of economic welfare in Kaiso sub-county and to establish the relationship between oil The findings of the study revealed that oil exploration has both positive and negative impacts on the economic welfare in Kaiso and Uganda at large. Based on the results obtained and interpreted, it was observed that oil exploration has not significantly improved the level of economic welfare in Kaiso sub-county and Uganda’s economy because the sample regression line in the dependent variables (economic welfare) are of poor fit. Thus, we can conclude that oil exploration despite its positive effect on the growth of Uganda’s economy has not significantly improved the economic welfare, due to many factors like misappropriation of public funds (corruption) and poor administration. Generally, the study recommended that the government of Uganda should encourage more private company participation so that there is better-equipped refinery and the cost of refining oil and gas will reduce, security should be boosted in order to reduce on smuggling of oil. This will help to reduce the loss from illegal

oil exports, the government should give immediate attention to the indigenes of the region where oil is being extracted. This will reduce the unrest in Bunyoro region. The government should establish an institution that will ensure that the multinational oil companies are socially responsible to their host community.