Untapped: The Scramble for Africa’s Oil

Although Africa has long been known to be rich in oil, extracting it hadn’t seemed worth the effort and risk until recently. But with the price of Middle Eastern crude skyrocketing, and advancing technology making reserves easier to tap, the region has become the scene of a competition between major powers that recalls the 19th-century scramble for colonization. Already, the United States imports more of its oil from Africa than from Saudi Arabia, and China, too, looks to the continent for its energy security.

Does Africa measure up to the hype? After all, the entire continent is believed to contain, at best, 10 percent of the world’s proven oil reserves, making it a minnow swimming in an ocean of seasoned sharks. Africa is unlikely ever to “replace” the Middle East or any other major oil-producing region. So why the song and dance? Why all the goose bumps? Why do so many influential people in Washington let themselves get so carried away when they talk about African oil?

The answer has very little to do with geology. Africa’s significance as an oil “play,” to borrow the industry lingo, lies beyond the number of barrels that may or may not be buried under its cretaceous rock. Instead, what makes the African oil boom interesting to energy-security strategists in both Washington and Europe (and, increasingly, Beijing) is a series of serendipitous and unrelated factors that, together, tell a story of unfolding opportunity.

To begin with, one of the more attractive attributes of Africa’s oil boom is the quality of the oil itself. The variety of crude found in the Gulf of Guinea is known in industry parlance as “light” and “sweet,” meaning it is viscous and low in sulfur, and therefore easier and cheaper to refine than, say, Middle Eastern crude, which tends to be lacking in lower hydrocarbons and is therefore very “sticky.” This is particularly appealing to American and European refineries, which have to contend with strict environmental regulations that make it difficult to refine heavier and sourer varieties of crude without running up costs that make the entire proposition worthless.

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