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.
