Tweet

2.2 Sectoral performance III: Economic Report on Africa 2007

Written by: United Nations Economic Commission for Africa

Article Overview: The energy sector

2.2 Sectoral performance III: Economic Report on Africa 2007

The energy sector

In 2005, Africa’s production of crude oil averaged 8856 million barrels per day,
which was 6.1 per cent higher than the 2004 average. Algeria, Angola, Libya, and
Nigeria are the main oil producers, with a share averaging 75 per cent in 2005.
Other oil producers are Cameroon, Chad, Congo, Côte d’Ivoire, Egypt, Equatorial
Guinea, Gabon, Mauritania, Sudan, and Tunisia.

As far as natural gas is concerned, Africa’s production in 2005 averaged 171,735
million standard cubic metres, which represented an increase of 13.1 per cent from
2004. This raised Africa’s share in world gas production from 5.5 per cent in 2004
to 6.1 per cent in 2005 (table A2.1 in Appendix). Algeria accounted for 50 per cent
of Africa’s total production of gas, followed by Egypt, Libya, and Nigeria, together
accounting for about 44 per cent in 2005. The increase in African production of
natural gas is explained by two main factors. The first is related to the acceleration
of the level of substitution of crude oil by natural gas in the generation of electricity
around the world, which increases the level of global demand for natural gas. The
second reason is the high level of international prices for both oil and gas, which
increased the level of extraction of gas on the continent.

At the end of 2005, African proven reserves of crude oil represented 10.2 per cent
of the world’s total, while reserves of natural gas in Africa accounted for only 7.9
per cent of the world’s total (table A2.2 in the Appendix). Algeria, Libya, and
Nigeria lead in terms of proven reserves with a share of 76 per cent of total African
reserves, followed by Angola, Egypt, Gabon and Sudan with a combined share of
18.4 per cent.

Africa continues to be a net exporter of crude and refined oil products. In 2005,
exports of crude oil reached 6477.6 million barrels per day, which represented an
increase of 1.8 per cent from 2004. However, Africa’s share in the global exports
of crude oil declined slightly from 14.9 per cent in 2004 to 14.5 per cent in 2005.
For refined products, exports grew slightly by 0.8 per cent compared to 2004. This
growth is observed after three successive years of decline in exports of refined products
as a result of the higher growth of domestic demand for these products than for
refining capacity. In fact, in 2005, African consumption of refined products grew by
2.8 per cent compared to 2004 while the refining capacity grew by only 0.5 per cent
during the same period. Five countries dominate the demand for refined products:
Algeria, Egypt, Nigeria, Libya, and Tunisia, accounting for almost 65 per cent of
the total African consumption of refined products in 2005. Overall, exports of both
crude and refined oil products from the region grew by 1.7 per cent relative to 2004,compared to 4.6 per cent for the world, which shows a continent-wide structural
bottleneck in refining capacity.

Related Articles
  4.0 Diversification trends in Africa: Economic Report on Africa 2007
  1.8 References: Economic Report on Africa 2007
  V. D. The Future of China-Africa Economic Relations: FACTORS INFLUENCING THE GROWING TIES
  Implications of the New Agreement for Africa’s Export Trade
  Overview IX: Economic Report on Africa 2007

Article Tags: Africa, Algeria Angola Libya, Appendix Algeria Libya, crude oil, natural gas, Nigeria, refined products



Related Forum Posts
Re: need advice - Africa is a pretty big place I think it is a question of where in Africa you would like to open a call centre. South Africa for example actually has plenty of call centres already operating, so it would very much depend on what part of Africa you are considering. MichelleJ
Re: Newbie from Africa - Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ
Adventure travel to Africa. - Africa is a place where adventure is taking place. If you are a travel who loves adventure, nature, culture you should visit Africa. Safari Village operator is a .leading tour operator in Kenya who are offering marvelous tour packages to Africa. Saffari Villages Online is a trusted name for africa travel.
Re: Global Moderators - Hi GT, In my case, I only have the Report Post and the Quote buttons.
Re: Newbie from Africa - [quote="Evan":22gvtxlq]Welcome to the forums Biiyke! You asked if we know any sellers who were trying to reach the African market... I think you'd honestly have more luck going the other way - try to find sellers in Africa and sell to the rest of the world.[/quote:22gvtxlq] Hello Evan, You are absolutely correct.Thank you for your advice.That's actually the whole idea,Africa to the world and the world to Africa. So I will throw more weight on that area.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Listen to Your Inner Melody

Sales Training – Top Salespeople Are Not Dunces

Living on The Edge of Chaos...

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.