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Making oil a blessing, not a curse: with, at last count, some 500 oil and gas companies from around the world operating in Africa, the continent's hydrocarbon sector has been playing a pivotal role in Africa's economic development efforts. With new finds being made all over, what lies ahead for the continent? Neil Ford explores the growing importance of Africa's new frontiers.

Article Excerpt
With, at last count, some 500 oil and gas companies from around the world operating in Africa, the continent's hydrocarbon sector has been playing a pivotal role in Africa's economic development efforts. With new finds being made all over, what lies ahead for the continent? Neil Ford explores the growing importance of Africa's new frontiers.

IT USED TO BE THE CASE ON THE African continent that sizeable oil and gas producers were vastly outnumbered by countries with no commercial hydrocarbon production. Yet Chad is now an important oil exporter, while Tanzania and Mozambique have begun to develop their own gas reserves. Ghana's anticipated entry into the ranks of the net exporters sees the Gulf of Guinea frontier extended westwards and recent finds in Uganda will allow large-scale oil production in East Africa for the first time.

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Such discoveries are heartily welcomed by their host governments but certainly complicate the picture of whether Africa as a whole benefits from high or low oil prices. A great deal of media coverage was given to the impact of very high oil prices during the three years up to mid-2008 on African net oil importers. A barrel price well in excess of $100 obviously pushes up transport and fuel costs, but it also increases the price of all imports and raises the cost...

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