Crude Oil Supply and Demand Prospects in Africa

Abstract

The serious search for hydrocarbon resources in Africa dates back to the 1950s when the major suppliers were obligated to find other sources because home country reserves were being depleted and the political situation in the Middle East was increasingly unstable. Resultant activity in Africa increased reserves five-fold with Algeria, Nigeria, Libya and Angola accounting for 87% of the total. During this period each country increasingly exercised direct control of its reserves. Africa can be expected to keep its 9% share of world producion which is approximately 5.5mbd, a level that can be maintained with reasonable assurance until the year 2000. About 4mbd of this will be exported, principally to OECD countries. The development of further oil potential will rely heavily on foreign capital and technology. Its availabilty, in turn, will be influenced by oil requirements and oil politics.