US faces stiff competition from China for African oil supplies

06-12-05

The United States faces stiff competition from China for oil supplies from Africa and Washington must take a more strategic view of the continent by investing more resources there, US experts said.
The influential Council on Foreign Relations said in a report that Africa was growing in strategic importance, particularly for energy supplies, and the United States should go beyond the usual humanitarian approach and view the continent more as a partner.
"By 2010, Africa could be providing the United States with as many oil imports as the Middle East," said Anthony Lake, co-chair of the think tank's task force that wrote the report and a national security advisor in the Clinton administration.

The report predicted Africa would have the biggest incremental increase in oil production of any region over the next two or three years and said China was gaining a greater foothold in oil-producing African countries.
"It is increasingly in US interests to locate new oil sources outside the Middle East," said the report, pointing to West Africa's sweet crude, which was easily transported to the eastern United States.

China now receives 28 % of its oil imports from Africa, mostly from Angola, Congo and Sudan, said the report, adding that Chinese investment totalled about $ 4 bn in Sudan, making it Khartoum's biggest foreign investor.
Beijing was becoming a bigger player on the west coast of Africa, the continent's biggest oil-producing area. China recently made a $ 2-bn loan to Angola secured by future oil deliveries to win an oil exploration bid and in July China and Nigeria signed a $ 800-mm crude oil sale deal.

The Bush administration has voiced concern that China is courting "rogue" states in Africa like Sudan and Zimbabwe and ignoring their human rights records in favour of closer economic ties. Lake said as the Darfur crisis worsened in Sudan in 2004, China had used its position on the UN Security Council to dilute repeated resolutions on the crisis.
China also courted Zimbabwean President Robert Mugabe, who is seen by the United States as having wrecked his country's economy.

Beijing's influence in Africa is likely to come up during talks between US Deputy Secretary of State Robert Zoellick and key Chinese officials. The State Department's point person on Africa also visited China recently and expressed US fears over its role in Africa.
The report called for a US-Africa energy forum to promote cooperation and develop public-private partnerships. In addition, it said US companies trying to compete in Africa needed more government help to win deals now going to Chinese firms. It suggested the US diplomatic presence be upgraded in energy-producing African countries and that there should be Cabinet-level visits to those nations.

A former US ambassador to South Africa, Princeton Lyman, said Africa was too often viewed as a "humanitarian backwater" and given scarce diplomatic and intelligence resources.
Asked about the report, State Department spokesman Adam Ereli said the Bush administration was engaged "in a strategic way" in Africa and wanted to cooperate more closely with China on Africa.
"Rather than competition, I would say the United States views its role and its work with other nations in Africa as a process of cooperation and coordination in pursuit of what the countries of the region are looking for," he said.
 

 

Source: www.miningweekly.co.za