Channel News Asia: African oil sales hurt by U.S. shale boom

Foreigners have been pouring money into Africa. Last year, foreign direct investment in Sub-Saharan nations hit a near record US$43 billion, boosted by new oil and gas discoveries. Asian markets like China and India are lapping up the continent's fuel but the US shale boom could turn the fortunes for Africa's oil producers.

For years, African crude has been a viable substitute for Middle Eastern oil. Sub-Saharan Africa produced 5.8 million barrels of liquid fuels a day in 2013, making up 6.5 percent of global oil production. Sub-Saharan Africa oil production has been growing at 3 percent a year on average for the past 10 years, according to US Energy Information Administration.

But the shale revolution in the United States could stem the flow. African oil exports to the US, a major buyer, have dropped to its lowest in decades, a development not missed by Africa Singapore Business Forum in Singapore. The conference on August 27-28 threw up different views about how the US shale boom will affect the African oil and gas sector in the long term. Some business leaders at the forum were confident that growing domestic demand within Africa will absorb new discoveries, but others were less hopeful.
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