Sub-Saharan Africa’s oil and gas was growing “as a force” on international markets, with the United States expected to up its share of oil from the region from the current 18% of its supplies to 25% by 2015, says South Africa’s Mineral and Energy department chief director of hydrocarbons, Nhlanhla Gumede.
Addressing a training workshop for members of Parliament serving on the National Assembly minerals and energy portfolio committee on Monday, Gumede said the region currently produces limited amounts of oil — about four million barrels of crude per day — compared with the total global consumption of about 80-million barrels per day.
The region was also small in world terms in reserves of oil — at about 35-billion barrels compared with the Middle East’s 725-billion barrels.
“While Sub-Saharan Africa appears inconsequential, it is growing in importance,” Gumede told MPs.
The region was of importance as a “swing” producer, and what happens to output within Africa “can significantly affect global prices and availability”.
He noted that United States Deputy Assistant Secretary for International Energy Policy, John Brodman, had said that Africa currently supplied about 18% of US net oil imports and both Nigeria and Angola were currently among the top 10 suppliers of oil to the United States.
Brodman had said that US dependence on oil from Africa was expected to rise in the future as new fields were brought on-line.
Gumede said the reality was that the United States wished to reduce dependence on its supplies from the Middle East, and Saudi Arabia in particular. By 2010, US oil supply from Africa is expected to reach 20%.
Asked by MPs what the implication for South Africa — and other African states was — he said that the US was already investing heavily in oil infrastructure in such states as Sao Tome and Equatorial Guinea.
“The salient point is unless African nation states start participating [in investment] in infrastructure in these areas [of Africa] the United States will be in there first.”
In addition, the message was also going out to African nations that it was important to diversity supply — as the United States was doing — and not to rely on one country. This was key to increasing access to affordable energy services, he said. – I-Net Bridge