Oil and Poverty

Résumé du document

Oil is the main source of energy in the world. It represents between 36 and 40 per cent of the global energy needs (gas represents between 21 and 24 per cent of the global energy needs and coal around 23 per cent). Four salient features of oil can be pointed out:
1. Oil is not a renewable energy (it is a limited source of energy);
2. It is a concentrated source of energy (there is an unequal distribution of oil among states);
3. It is an unsecured source of energy (the main producing countries are located in instable regions);
4. There is an increasing demand of oil (according to the International Energy Agency, the oil demand will rise by 50 per cent by 2030).
According to Pierre Noel, member of the French Institute of International Relations (IFRI), the oil market is the single international market composed of different industries, public or private. Thereby, energy policies not only dependent on the states' policies but they are also the result of industrial strategies. This essay will analyze the politics of oil in Africa.

Extraits

[...] Four features of oil can be pointed out: 1. oil is not a renewable energy (it is a limited source of energy); 2. it is a concentrated source of energy (there is an unequal distribution of oil among states); 3. it is an unsecured source of energy (the main producing countries are located in instable regions); 4. there is an increasing demand of oil (according to the International Energy Agency, the oil demand will rise by 50 per cent by 2030). [...]

[...] The Algerian and Nigerian cases show the dependence of these governments on oil revenues. After the independence (respectively in 1962 and 1960), both countries have focused their economic activity on the production of oil, neglecting the investment in other sectors; they “have derived all their export revenues from Therefore, oil accounts for some 30 per cent of Nigeria's GDP and 80 per cent of its budgetary revenues. For both producing states, foreign involvement is “central to the exploitation, production, marketing and sale of In other words, Algeria and Nigeria depend on the international community. [...]

[...] The Consuming states find with the African continent a cheap way of diversification. But these foreign investments are hampered by the widespread of corruption, internal disorder and high risks of conflicts, and the lack of governmental transparency. Several countries rely on oil but in some African states, the living standard decrease despite increases in oil revenue. To conclude, oil in Africa remains a curse more than a blessing. The shift would probably occur with the democratization of the continent (military regimes are more subject to corruption and lack of transparency than democratic regimes). [...]

[...] Bibliography FRYNAS, J.G., BECK, M.P. and MELLAHI, K. “Maintaining Corporate Dominance after Decolonisation; the First Mover Advantage of Shell-BP in Nigeria”. Review of African Political Economy. Vol.27, No.85, September 2000. FRYNAS, J.G. and WOOD, G. and War in Angola”. Review of African Political Economy. Vol.28, No.90, December 2001. KLARE, M. and VOLMAN, D. [...]

[...] As for the United States, it is more and more interested by the African oil. The Cheney report 2001 expresses an increase in the American investments in Africa; it “provides arms and military assistance to friendly oil producers in Africa”[5], especially to Angola and Nigeria, the two leading oil suppliers of the continent to the United States. So, oil attracts foreign investments, which is necessary for the economic growth. II/ The necessity of oil for the african economic growth As a general rule, the development of the African continent strongly depends on agriculture and natural resources. [...]