Re-Blogged From Stratfor
- Bahrain’s discovery of the Khaleej Al Bahrain oil and gas field has the potential to make a material change in the country’s financial crisis, but there are roadblocks.
- It will be five to 10 years before production begins in substantial volumes, it will be expensive, and it’s not clear how much of the oil and gas can be recovered.
- In the meantime, Bahrain will use the long-term potential of increased oil and gas production — and the state revenue that comes with it — to attract new investment.
- An increase in oil revenue will allow the country to boost some of the social services that it provides to its restive population and reduce the need for painful economic adjustments.