Study and Evaluation of the Extraction of Northern Oil Fields on Income Generation in the Afghan Economy

Abstract

The study and investigation of oil extraction processes play a key role in improving economic productivity and increasing national income. As the main sources of income in many countries, these activities play an important role in economic development, creating employment, and providing financial resources for development projects. Economic analyses show that proper management and advanced technologies in oil and gas extraction can have a significant impact on improving productivity and reducing costs, and as a result, increasing the income generation of the economy. In addition, policies based on sustainable financial principles and proper utilization of resources can prevent price fluctuations and the decline of fossil fuels and ensure economic stability. Afghanistan, as one of the countries rich in natural resources, has significant potential in the oil sector, although major extraction and exploitation has not been carried out in this sector so far. Lack of infrastructure, lack of modern technologies, and internal insecurity are major obstacles to the development of this sector. The release and identification of oil reserves in parts such as the northern and western regions of the country provide great economic opportunities. If these resources are extracted in sustainable and effective ways, they can play an important role in increasing government revenues and improving the livelihoods of the people. If properly and fairly exploited, oil revenues can be an important source of finance for development projects, education, health, and infrastructure. Job creation and poverty reduction as a result of extraction activities are among the direct benefits of these resources. Despite the high potential, Afghanistan faces challenges such as insecurity, weak technology, lack of appropriate investment, and inability to manage resources. These factors prevent full and profitable exploitation and limit economic opportunities. By improving security, developing modern technologies, and attracting international investment, Afghanistan can exploit its oil resources, which can be effective in increasing national income, reducing poverty, and improving public welfare. Attention to proper management, transparency, and compliance with environmental standards are crucial in this path.