Africa oil and gas scenario: A complete research on upcoming energy developments in Africa

The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution. In last two decades the Energy sector has seen some significant developments.

The first and foremost includes “Demand-Side Development”, the awakening of the two Asian giants – China and India. Both these economies have launched an energy-intensive rapid-growth paradigm, playing ‘catch-up’ in the unstoppable global development game. With their combined population accounting for more than one- third of the global population and their low per capita energy consumption base, these two economies will block an increasing share of the declining global energy sources, especially hydrocarbons.

The other major development in the energy industry, this time on the supply side, is the emergence of new hydrocarbon supply regions in Russia, Central Asia, Africa and Latin America. Of all these regions, Africa has indeed become the target of predatory acquisitions and unpleasant practices for international extractive enterprises engaged in the extraction of minerals, gold, diamonds, oil and timber. Many global giants such as Baker Hughes, BP, Chevron, Exxon-Mobil, Gazprom, Petrobras, Petrochina, Royal Dutch Shell, Schlumberger, Total etc. have already marked their presence in African market.

Africa is the world’s second-largest and second-most-populous continent. It is surrounded by the Mediterranean Sea to the north, both the Suez Canal and the Red Sea along the Sinai Peninsula to the north east, the Indian Ocean to the Southeast, and the Atlantic Ocean to the west.

Africa’s share of global oil and gas production has stood at 10% and 6% respectively over the past 24 months. 2012 has been marked with extensive activity by IOC’s and expectations that the unexplored acreages of African coasts would yield substantial resources. Africa also produced an estimated 230 billion cubic meters of natural gas in 2012, and this is likely to increase to around 250 bcm in 2013, with new supplies from Angola, Mozambique and Tanzania.

Future prospects of emerging oil and gas opportunities:

With huge resource base in Africa it can be forecast-ed that it will be a new center of attraction for investment in hydrocarbon sector in the world. As per “business monitor international and Reuters” there are several upcoming oil and gas projects in this region including  6 new refineries  planned in Algeria , 200,000 bpd refinery in Zaire by Angola. Moreover ,Congo plans to build a second refinery in the country .as far as major  investments are considered Egypt is all set to spend US $18 bn in this sector and in 2016 African richest man Alhaji Dangote is willing to invest US $8 bn in Nigerian refining sector. With increased production of gas in Mozambique, Tanzania their lies a huge investment potential for financial and hence infrastructural development.

 Among the countries with emerging oil and gas developments, Mozambique, Tanzania, Uganda, and Madagascar have shown great progress towards commercial development of newly discovered resources. Uganda and Madagascar are most likely to be the next oil producers in the continent. Mozambique will probably be the first country in East Africa to develop the capability to export liquefied natural gas (LNG), possibly followed by Tanzania.