Oil Pipelines the New African Hope
Sunday, December 6th, 2009 at 9:43 am
African nations are among the poorest nations in the world – the continent itself is the poorest among the seven, but the tides of wealth and power may soon change. Raw material commodities production in Africa is increasing, with demand climbing up right next to it.
The African oil output is expected to skyrocket in the next several years with Nigeria well in the lead for top producer. Ghana will start to pump its oil from a new offshore field by the later part of 2010. Uganda alone is expected to produce 150,000 barrels of oil a day – that is 6.3 million gallons of oil at 24 gallons a barrel.
Production Does Not Equate Riches
Amidst this foreseen increase in oil production are sentiments from the African public that it is not actually improving the lives of the people. Some Africans say oil in Africa prevents other commodities and sectors, like business and tourism, from developing because the government is too focused on oil commodities investment and production.
More and more Africans are losing their jobs, further preventing the creation of new jobs while other Africans say oil in Africa is a blessing. Most of the Africans who support the oil production believe it is their leaders who are not doing anything effective to stop the corruption and improve the economic status of Africa – since even some of the leaders are corrupt.
Problems Needing to be Addressed
Armed rebellion in Nigeria and pirates are also major factors which cannot be ignored. Before the oil pipelines can bring riches and secure the future of the African people this issue has to be addressed.
For instance the Nigerian rebels once blew up a pipeline which cost 700,000 barrels of crude oil a day. Ever day oil tankers in Somalia face the danger of getting boarded by pirates who will either steal their oil cargo or demand ransom for the ship and its crew. These are only some of the barriers the African oil producing countries are facing.
Oil thirsty US and China will be increasing their oil demands from Africa. Oil is definitely the new hope of Africa, without a doubt – but hope is useless without the determination and will of the people and leaders to help ensure that future. For now, Africa remains extremely unstable – but it is also showing one of the most rapid growth spurts of any continent.
Tags: Africa, commodities, oil