| Trade and Development | Thursday 12 September 2002 |
Africa Becomes New Focal Point of U.S. Energy SecurityExecutive of black energy group speaks about energy partnerships By Jessica LawrenceWashington File Staff Writer Washington -- In the fight against terrorism, America's energy needs are crucial to U.S. national security, says Robert Hill, executive director of the American Association of Blacks in Energy (AABE). Energy sources that are reliable, secure, and uninterruptible are beginning to be a primary focal point of the Bush administration, Hill told a Constituency for Africa (CFA) conference held at the State Department September 9. During the gathering, CFA President Melvin Foote presented Secretary of State Colin Powell with an award for his efforts in promoting greater partnership with Africa. Hill told his audience: "AABE commends Secretary Powell and Assistant Secretary [Walter] Kansteiner for their leadership and willingness to engage diverse constituencies to ensure a broad-based policy development process." He added that the AABE realizes the great importance of developing a more diversified U.S. energy policy that would replace Middle East oil with African exports and is committed to working with the U.S. government to ensure that this policy gains momentum. "Along with Latin America, West Africa is expected to be one of the fastest-growing sources of oil and gas for the American market," said Vice President Richard Cheney in his May 2001 National Energy Policy Report. "African oil tends to be of high quality and low in sulfur, making it suitable for stringent refined product requirements, and giving it a growing market share for refining centers on the East Coast of the U.S." Hill pointed out that the U.S. economy, valued at about $10 trillion ($10 million million), is energy-centered and heavily dependent on oil, which accounts for almost 40 percent of total U.S. energy consumption. The United States imports 52 percent of its oil, with 70 percent of its needs being met by only six countries: Canada, Venezuela, Mexico, Saudi Arabia, Iraq, and Nigeria. The Persian Gulf states supply 25 percent of U.S. oil imports. At present, about 15 percent of U.S. oil is imported from Africa, but Hill and other experts expect this amount to grow in the years to come. Last year, seven billion (7,000 million) of an estimated eight billion (8,000 million) barrels of oil discovered in the world were located off the coast of West Africa. But in order for Africa to be able to develop its energy sector, it must continue to cultivate partnerships such as the ones being developed with U.S. industries. The United States has already been extensively involved in Africa's growing oil industry. The $3.5 billion ($3,500 million) Chad-Cameroon pipeline, and the West African Power Pool that will integrate and develop energy resources in West Africa, are examples of U.S. contributions. "It's clearly in our national interest to diversify our energy supply, especially given the turbulent political climate in key parts of the world today," said House of Representatives Africa Subcommittee Chairman Ed Royce (Republican of California) in a statement released in June 2002. "The expansion of energy production in Africa matches that interest." Hill noted that the recent U.S. government National Energy Policy (NEP) report stressed the need for improved relations with foreign suppliers and nations that produce oil. It called for a stronger U.S.-Africa relationship in the face of fragile and potentially unstable global markets. The energy expert made four key points for expanding U.S.-Africa business ties: -- Mutually beneficial partnerships that produce and supply goods must be strengthened and expanded. -- Policy development directed towards African countries should promote and stimulate trade, investments, and technology. -- The United States should work to sustain capacity development by bringing in African governments, NGOs, and other businesses from the private sector to build support for African energy companies. -- Information must be circulated to increase the alertness of those responsible for energy sector development, stressing its vast importance to the national security, stability, and economic growth of the United States.
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