- 1. 17 April 2009 Ricardo Silva African petroleum resources:The
Chinese challenge and what to do about it
2.
- 27August 1859 Drakes well
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- North America: 26,000,000
Historical evolution 3. Historical evolution World population
(millions) 4. Historical evolution Life expectancy 5. Historical
evolution
- Contribution from oil & gas
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- Machinery: consumables, food production;
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- Heating, cooling, lighting;
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- Raw materials for production of:
6. Post-War years
- Growth in the importance of oil:
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- Expansion of automobile use;
7. Post-War years
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- Consumption is 3 times higher than discovery;
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- Peak in discoveries = 1960;
8. Post-War years
9. Why Africa?
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- 2007: 21% of US petroleum imports;
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- January 2009: 54,242,000 barrels of oil;
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- Gulf of Guinea producing more than Saudi Arabia in 10-years
time?
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- 8% of World gas reserves;
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- Algeria supplies 25% of European consumption;
10. Why Africa? 11. Why Africa?
12. Why Africa?
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- Increased security of offshore oilfields;
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- Lower level of resource nationalism;
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- Lower transport costs and risk of disruption;
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- Huge unexplored resource deposits;
13. Whos who of African oil
14. Whos who of African oil
15. US presence
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- The USD 20 billion invested in African E&P since 1990;
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- The USD 50 billion estimated to be invested until 2010.
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- Western-style democracy and institutions;
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- Disease control programs;
16. US presence
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- Commitment to Western ideals and principles;
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- Liberalized access to reserves;
17. Chinese connection
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- Low interest loans and debt relief;
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- Commitment to infrastructure (railroads, roads, refineries,
pipelines, etc.);
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- China-Africa Cooperation Forum;
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- USD 32 billion in trade, growing at an annual rate of 50% since
2002;
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- Military assistance (peacekeeping);
18. Chinese connection
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- Hydrocarbons(16% from Angola in February 2009);
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- Increased political influence;
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- Export market for Chinese goods and equipment;
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- Export market for Chinese labor;
19. Chinese connection
- How strong is Chinas influence?
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- Low production by Chinese NOC;
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- Low interest of most acreage held by Chinese companies;
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- Low return on high government investment;
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- Lower level of high-tech E&P knowledge;
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- Infrastructure quality issues;
20. How to deal with China
- Increase political, economic and military involvement;
- Promotion of energy cooperation;
- Greater contribution to local content;
- Increase technology transfer;
- Western-Chinese dialogue to improve African institutions;
21. Thank You Ricardo Silva [email_address] 22.