Energy Information Administration Independent Statistics & Analysis
Oil and Natural Gas in Sub-Saharan Africa August 1, 2013
2 Sub-Saharan Africa Source: U.S. Department of State Liquid Fuels Reserves and Production in Sub-Saharan Africa 3 4 Sub-Saharan Africa (SSA) produced nearly 6 million bbl/d of liquid fuels in 2012, which was about 7% of total world oil production.
Overview Sub-Saharan Africa contains 62.6 billion barrels of proved crude oil reserves. The Middle East has 13 times that amount and Central and South America has 5 times that amount.
Middle East 30% North America 20% Eurasia 15% Sub-Saharan Africa 7% North Africa 5% Asia & Oceania 10% Central & South America 9% Europe 4% Global Liquid Fuels Production, 2012 Source: EIA, International Energy Statistics 0 200 400 600 800 1,000 Middle East Central & South America North America Eurasia North Africa Sub-Saharan Africa Asia & Oceania Europe Regional Comparison of Proved Crude Oil Reserves Source: Oil & Gas Journal, as of January 1, 2013; EIA, U.S. Crude Reserves, billion barrels 5 Oil production in SSA grew by an annual average of 3% over the past 10 years. Production growth was led by Angola and a few smaller producers.
Total liquid fuels production is forecast to grow by an annual average of 3% in 2013 and 8% in 2014, led by Angola, Ghana, and South Sudan in both years and Nigeria in 2014.
If South Sudans production is shut in for the second half of 2013 and all of 2014 and unplanned disruptions persist at heightened levels in Nigeria, SSA liquid fuels production would grow by 1% in 2013 and 2% in 2014
4 5 6 7 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Liquid Fuels Production in Sub-Saharan Africa Baseline Low scenario million barrels per day projections Source: EIA, Short-Term Energy Outlook 6 Sudan and South Sudan had been the third largest oil producer in the region before South Sudan shut in all of its oil production in January 2012.
Nigeria has been the top liquid fuels producer in the SSA region, followed by Angola. Together they made up 75% of total liquid fuels produced in Sub-Saharan Africa in 2012. Top SSA Liquid Fuels Producers in 2012 Country Production (million bbl/d) Nigeria 2.52 Angola 1.87 Equatorial Guinea 0.32 Congo (Brazzaville) 0.29 Gabon 0.24 Other SSA 0.64 Total SSA 5.88 Source: EIA, International Energy Statistics Nigeria 43% Angola 32% Equatorial Guinea 5% Congo (Brazzaville) 5% Gabon 4% Rest of SSA 11% Source: EIA, International Energy Statistics 7 Unplanned disruptions caused by oil theft and pipeline damage compromises a substantial portion of Nigerias crude oil production. Crude oil production peaked at 2.44 million bbl/d in 2005. Despite new production coming online, crude oil output was only 2.10 million bbl/d in 2012. 0 1 2 3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Oil Production in Nigeria, 2003-2012 million bbl/d Source: EIA, International Energy Statistics and Short-Term Energy Outlook Crude oil output fell by more than 25% as infrastructure attacks and oil theft escalated (2005-2009). In 2010, attacks on oil facilities declined following the implementation of the amnesty program. But after 2011 disruptions began to escalate again. liquid fuels production crude oil production 8 Mature Production Production Management Production Growth New Producers Production is forecast to decrease because of natural decline in mature fields. New production may come onstream, but volumes are not large enough to offset declines. Forecast production is flat or steadily increasing. New production coming onstream equals or exceeds the natural decline in mature fields. Production is forecast to grow in countries that are relatively new producers as additional fields come onstream. Oil production is expected to start sometime within the next five years. Sudan and South Sudan Nigeria Ghana Uganda Equatorial Guinea Angola Niger Madagascar Gabon Congo (Brazzaville) Cameroon South Africa Chad Ivory Coast Congo (Kinshasa) Mauritania Several deepwater oil projects are being developed in West Africa. New production from deepwater fields is expected to start in Nigeria, Angola, Congo (Brazzaville), and Ghana within the next five years.
Crude oil production in Uganda and heavy oil production in Madagascar is anticipated to start within the next five years.
Short- to Medium-Term Country Characteristics Oil Exports 9 10 China was the largest crude oil importer from Sub-Saharan Africa in 2012, followed by the United States. Angola is the second leading exporter of crude to China and accounted for 15% of Chinas crude oil imports in 2012. China 22% US 13% India 11% Netherlands 6% Spain 5% Other Europe Union 17% Other Asia Pacific 10% Central & South America 7% Other North America 3% Africa 6% Other >1% Sub-Saharan Africa's Exports of Crude Oil including Lease Condensate, by Destination, 2012 Note: Estimates include crude oil and lease condensate traded via tanker and does not include oil traded inland by truck. Source: APEX Tanker Data 11 U.S. crude oil imports from Nigeria have declined sharply because of growing U.S. production of light sweet crude oil, of similar quality to Nigerian crude. Nigeria typically accounted for about 10% of the crude oil imported into the United States; in 2012, that share dropped to about 5%. 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 U.S. imports of crude oil from Sub-Saharan Africa thousand barrels per day Source: EIA, Petroleum & Other Liquids Sub-Saharan Africa Nigeria Angola 12 Nigeria exported around 2.2 million bb/d of liquid fuels in 2012. Exports diverted from the United States have been absorbed by the European Union, making the region the leading regional importer of Nigerias oil. 0 200 400 600 800 1,000 1,200 2008 2009 2010 2011 2012 Nigerias liquid fuels exports, by region, 2012 Note: Estimates include crude oil and lease condensate traded via tanker and does not include oil traded inland by truck. Source: APEX Tanker Data
thousand barrels per day United States European Union Other Asia Natural Gas Production in Sub-Saharan Africa 13 14 Sub-Saharan Africa produced 1.69 trillion cubic feet of natural gas in 2011, accounting for 1% of total global natural gas production.
Overview Sub-Saharan Africa has 221.6 trillion cubic feet of proved natural gas reserves. The Middle East has almost 13 times that amount and Eurasia has almost 10 times that amount.
North America 26% Eurasia 25% Middle East 15% Asia & Oceania 15% Europe 8% Central & South America 5% North Africa 5% Sub-Saharan Africa 1% Global Dry Natural Gas Production in 2011 Source: EIA, International Energy Statistics 0 500 1,000 1,500 2,000 2,500 3,000 Middle East Eurasia Asia & Oceania North America Central & South North Africa Sub-Saharan Africa Europe Regional Comparison of Proved Natural Gas Reserves trillion cubic feet Source: Oil & Gas Journal, as of January 1, 2013; EIA, U.S. natural gas reserves, 2010 15 Nigeria 66% Equatorial Guinea 14% Mozambique 8% Ivory Coast 3% South Africa 3% Other 6% Source: EIA, International Energy Statistics Top Natural Gas Producers in 2011 Country Production (billion cubic feet) Nigeria 1,107 Equatorial Guinea 243 Mozambique 135 Ivory Coast 53 South Africa 45 Other SSA 106 Total SSA 1,690 Source: EIA, International Energy Statistics 400 600 800 1,000 1,200 1,400 1,600 1,800 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Natural Gas Production in Sub-Saharan Africa, 2002-2011 billion cubic feet Natural gas production in Sub-Saharan Africa grew by an annual average of 10% over the past ten years. Growth was led by Nigeria, Equatorial Guinea, and Mozambique. Nigeria produces around two-thirds of the regions natural gas, although Nigerias production could be higher but it flares 20-25% of its gross production. Source: EIA, International Energy Statistics Natural Gas Exports 16 17 Sub-Saharan Africa exported 1.22 trillion cubic feet of natural gas in 2011 via pipeline and liquefied natural gas (LNG). Nigeria, Equatorial Guinea, and Mozambique were the only natural gas exporters in the region. Angola joined the group in 2013 when it began exporting LNG. Mozambique Equatorial Guinea Nigeria sends all exports to South Africa via pipeline exports LNG mainly to Asia, followed by Latin America and Europe the vast majority of natural gas exports are LNG, with small amounts exported via the West African Gas Pipeline Nigeria 75% Equatorial Guinea 15% Mozambique 10% Sub-Saharan Africa's Natural Gas Exports, 2011 Source: EIA, International Energy Statistics 18 Nigeria was the 4 th largest LNG exporter in the world in 2012, accounting for 8% of total LNG exports worldwide. Nigeria exported about 950 bcf of LNG in 2012.
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Qatar Malaysia Australia Nigeria Indonesia Top 5 LNG Exporters in the World, 2012 Source: FACTS Global Energy billion cubic feet 19 In 2012, Asia overtook Europe as the largest regional importer of Nigerias LNG. This is largely due to Japan, which more than doubled its LNG imports from Nigeria in 2012 compared with the previous year. 0 100 200 300 400 500 600 700 800 900 1,000 2008 2009 2010 2011 2012 Nigeria's LNG exports, by region, 2008-2012 Note: Unplanned production disruptions curtailed LNG exports in 2009 when the Soku gas processing plant was intermittently closed due to pipeline damage caused by condensate theft. Source: FACTS Global Energy and BP Statstical Review billion cubic feet Total Exports Europe Asia North America South America Middle East For more information 20 U.S. Energy Information Administration home page | www.eia.gov Country Analysis Briefs| http://www.eia.gov/countries/ Annual Energy Outlook | www.eia.gov/forecasts/aeo Short-Term Energy Outlook | www.eia.gov/forecasts/steo International Energy Outlook | www.eia.gov/forecasts/ieo Today In Energy | www.eia.gov/todayinenergy Monthly Energy Review | www.eia.gov/totalenergy/data/monthly Annual Energy Review | www.eia.gov/totalenergy/data/annual
Supplemental Slides 21 22 Liquid fuels production in Sub-Saharan Africa is projected to grow by an annual average of 1% from 2010 to 2040. The region is expected to account for 7% of world supply growth during that period. 0 20 40 60 80 100 120 140 2010 2015 2020 2025 2030 2035 2040 Liquid Fuels Production, 2010 - 2040 million barrels per day Sub-Saharan Africa Total World Source: EIA, International Energy Outlook, 2013 projections 23 OPEC West Africa leads projected liquid fuels production in Sub- Saharan Africa, accounting for 75% of the regions total production growth from 2010 to 2040. OPEC West Africa is expected to account for 10% of total OPEC growth from 2010 to 2040. Non-OPEC Sub-Saharan Africa is forecast to account for 3% of total non-OPEC growth during that period.
0 1 2 3 4 5 6 7 8 9 2010 2015 2020 2025 2030 2035 2040 Liquid Fuels Production in OPEC and non-OPEC Sub-Saharan Africa Source: EIA, International Energy Outlook, 2013 million barrels per day projections non-OPEC Sub-Saharan Africa OPEC West Africa Total Sub-Saharan Africa 24 0 1 2 3 4 5 6 7 2010 2015 2020 2025 2030 2035 2040 Dry Natural Gas Production in Sub-Saharan Africa, 2010-2040 trillion cubic feet projections Source: EIA, International Energy Outlook, 2013 Total West Africa East Africa Other Natural gas production in Sub-Saharan Africa is projected to grow at an annual average rate of around 5% from 2010 to 2040. 25 West Africa is projected to dominate natural gas production in Sub-Saharan Africa in the long term, accounting for 81% of the regions natural gas growth from 2010 to 2040. Nigeria 82% Angola 6% Cameroon 2% Mozambique 2% Congo (Brazzaville) 1% Other 7% Proved Reserves of Natural Gas, 2013 Source: Oil & Gas Journal, as of January 1, 2013 Nigeria is the 9th largest holder of proved natural gas reserves in the world. The country currently holds 182 trillion cubic feet of proved natural gas reserves, accounting for 82% of the total in Sub- Saharan Africa. East Africas dry natural gas production is expected to grow by an annual average of 6% from 2010 to 2040. Recent offshore discoveries in Mozambique and Tanzania are expected to boost production in the region. Offshore natural gas resources in Namibia and coalbed methane exploration in South Africa, Zimbabwe, and Botswana could add to southern Africas natural gas production.