Experts highlight challenges for African oil producers in ramping up supply to counter global price hikes.
African oil-producing countries are grappling with global oil price shocks triggered by disruptions in the Middle East, such as the closure of the Strait of Hormuz, which affects about one-fifth of worldwide oil transport.
Experts indicate that Africa's oil sector can offer some relief but not on a scale or timeline to fully address the shortages caused by these events.
Africa's Limited Short-Term Capacity
Nigeria, Africa's largest oil producer, lacks the spare capacity to boost output immediately, with current production at around 1.42 million barrels per day and no additional available resources, according to analysts.
The country faces obstacles including inadequate infrastructure, outdated pipelines, security issues in the Niger Delta, and underfunding, which prevent rapid increases in production.
Government initiatives like the 'One Million Barrels' project aim to reactivate wells and reduce regulatory delays, but these efforts will take time and significant investment to yield results.
Nigeria's domestic refining capacity has improved slightly with the Dangote Refinery processing up to 650,000 barrels daily, helping meet local fuel demands but not exporting surplus to ease global markets.
Angola's Potential in Oil and Gas
Angola, the second-largest oil producer in Sub-Saharan Africa, has left OPEC to gain flexibility in production decisions and is investing in expanding oil and gas output, including natural gas for the LNG market.
Despite these investments, experts note that Angola's contributions to global supply will primarily emerge in the medium term, as current projects require time to scale up.
Overall, while African nations are pushing forward with production enhancements, the immediate impact on global oil prices remains uncertain, with experts emphasizing that alternative sources alone cannot quickly resolve the crisis.
