What challenge does Bolivia’s location create for its natural gas activities?
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Answer:
Natural gas in Bolivia is one of the nation's main energy sources and export products. Bolivia's proved natural gas reserves are estimated to be 24,800,000,000,000(ft³) (1 January 2009 est.)
In 1994 the natural gas sector was privatized, and it was subsequently re-nationalized in 2006 by president Evo Morales after popular protests during the 2005 Bolivian gas conflict.
"Bolivia's economic history reveals a pattern of a single-commodity focus", diversification has only occasionally being the case, due to political and geographical problems. Currently, the situation is no different, and the commodity of the day is natural gas. Natural gas first became significant in Bolivia only relatively recently, after vast discoveries of fields in the late 1980s and early 1990s. At the time these new discoveries aided the country on a modest economic recovery after previous years of serious economic problems (with hyperinflation, recession, and austere stabilization), their most severe since the 1950s, later aggravated by a collapse on the world's tin market in 1985 – being tin Bolivia's most valuable natural commodity at the time.
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