01-12-05
The value the Bush administration places on enhanced energy and economic ties
between the United States and the nations of Africa is underscored by the US
Department of Energy’s first-ever co-sponsorship with the Corporate Council on
Africa of the 2005 Africa Oil and Gas Forum, US Energy Secretary Samuel W.
Bodman said December 1.
Addressing the closing session of the three-day energy conference, Bodman told
African oil ministers, "Your presence and the presence of all of these
delegations is proof of the importance of what we are trying to accomplish
through these meetings."
Bodman said the development of an energy sector to drive Africa’s economic
growth cannot be limited to one or two countries.
"Success will require cooperative efforts that involve all of Africa -- from
north to south, from east to west, all of these efforts that go farther… cross
oceans and reach out to every corner of the globe. This has to be an integrated
effort."
Both Africa and the United States face one overriding energy challenge, Bodman
told his audience: energy security -- "plentiful, reliable and affordable
supplies of a mix of energy sources” at home and abroad that are consumed in an
environmentally sound manner and are sustainable over the long term.
Energy security “essential” to growth
Bodman called energy security "essential" to economic growth and prosperity and
said that it best can be reached through a multilateral approach. President Bush
spelled out such an approach, he said, in a statement on national energy policy
in 2001, shortly after taking office.
That plan, Bodman said, contained detailed recommendations, the most remarkable
of which stressed the promotion of "enhanced international relationships"
worldwide, and the importance of transparency, the sanctity of contracts and
security of private property, the protection of intellectual property, a
dedication to regulatory certainty and adherence to the rule of law.
"Only when these pillars are in place will private companies -- including
many that are represented here in this forum -- feel confident to invest on the
scale that is necessary to fully develop the abundant resources that are found
in so many African nations," he said.
"We want to see more African countries engaged in programs with the United
States under the African Growth and Opportunity Act [AGOA] and other
trade-enabling mechanisms," Bodman said.
Under AGOA, enacted in May 2000, eligible countries receive duty-free access
to the US market for most of their products, a provision that offers tangible
incentives for countries to continue efforts to open their economies and build
free markets.
Bodman said a reliable energy infrastructure and a developed energy services
sector are critical to developing oil and gas resources and expanding trade and
investment between the United States and African nations.
Africa’s role in world energy markets
All nations must work together on energy matters, Bodman said, adding, "No
nation can really go it alone." He cited the important role Africa now plays in
world energy markets by supplying more than 10 mm bpd to the world’s oil supply
-- about 12 % of the world’s daily energy demand of about 80 mm barrels.
"With ongoing exploration… and favourable political and investment climates,
Africa will likely be the source of significant additional oil supplies over the
next 20 years," he said. "It is the incremental barrels that help… increase
energy security."
Bodman said the United States government has been involved in a wide array of
projects to help strengthen the ever-growing US-Africa energy partnership,
including the Chad-Cameroon pipeline project completed in July 2003 and the West
African Gas Pipeline Project, which is scheduled to be operational in about one
year.
The Chad-Cameroon pipeline, he said, transports up to 225,000 barrels of oil
daily from Chad’s oil fields to the coast of Cameroon, enhancing the economies
of both nations. The West African line will deliver 140 mm cf of natural gas per
day from Nigeria to commercial markets in Benin, Togo and Ghana.
Bodman said the untold wealth that has been produced by the United States
energy sector is owed not to any native genius but to a dedication to market
principles that have allowed the energy sector to develop without undue
government interference.
The Corporate Council on Africa, established in 1993, seeks to strengthen and
facilitate the commercial relationship between the United States and Africa.
Made up of more than 150 American companies doing business in Africa, CCA works
closely with governments, multilateral groups and business to improve the
African continent's trade and investment climate and to raise the profile of
Africa in the US business community.
(The Washington File is a product of the Bureau of International Information
Programs, US Department of State. Web site: http://usinfo.state.gov)
Source: United States Department of State