OPPapers.com

Africa Energy Resources

TOPIC

AFRICA ENERGY RESOURCES : PROSPECTS FOR INDIA.

OBJECTIVE
Africa has emerged as a hot spot for energy resource. For all the major powers, including India, energy has been the issue at the fore front. Africa has always been considered a conflict and war zone, but in recent years it has attracted much attention across the world as a potential energy resource.
Presently, 30% of India’s oil supply is being imported. Sub Saharan Africa holds 7% of world‘s oil reserves and comprises11% share of current production.
The U.S., Britain, France, and not to forget Chinese oil companies are rushing to take a stake in Africa’s oil wealth. Energy security may be the biggest challenge to Indian policy making in the coming decades.

INDIA’S ENERGY SECURITY CONCERN
At present, India is facing the critical challenge of meeting an increasing demand. India ranks sixth in the terms of energy demand. While India has significant reserves of coal, it is relatively poor in oil and gas resources.
In the process, India will emerge as a fourth largest consumer after the U.S., China and Japan. A project of international energy agency shows that India's dependence on oil import will grow to 91.6% by the year 2020.

INDIA’S OIL INTEREST
Historically India’s ties with Africa have centered on the support for the struggle against the imperialism, colonialism and apartheid. India has supported peace in Africa over the past 50 years. Recent years has witnessed a changed a paradigm shift in India’s interest towards Africa.

Energy is at the fore front of India's strategy in Africa. India's economy has grown at an incredible 8% per year in the last decade. As a part of its international strategy to diversify suppliers, the governments’ oil exploration and production enterprise, the oil and national gas corporation, has ventured into Africa. ONGC (the oil and gas corporation) has acquired shares in oil exploration ventures in Liberia and in Nigeria. It has also made substantial...