High oil prices prompt a scramble for Africa

DAKAR, Jan 25 (Reuters) – High oil prices and the onslaught of resource nationalism from Russia to South America have sent Western majors delving ever deeper into the waters of the Gulf of Guinea, triggering a new scramble for Africa.

Unlike more established oil-producing regions, the Gulf of Guinea offers easy access and attractive terms for Western oil companies, like Royal Dutch Shell and Exxon Mobil Corp, desperate to replenish their flagging reserves.


… Even if prices tumble, interest in West Africa is likely to be sustained by its strategic location between the U.S. and Asian markets, and the low sulphur content of its oil which makes it less corrosive to refine and more environment-friendly.

But with talk of “peak oil” — a plateau in world production — gaining currency among even seasoned oil executives, any prolonged decline in petroleum prices seems unlikely.

Reuters