Yet we must understand the while there are substantial oil reserves in Africa, they are dwarfed by the reserves in the Middle East and Russia. It would be wise to remember the overenthusiastic estimates of oil reserves in the Caspian Sean Basin. While significant oil and Gas reserves are present, the actual amount of recoverable oil that exists in Africa may once again be somewhat exaggerated. Nevertheless, because oil production in many parts of the world is declining, Africa will be a target for Western nations and companies for exploitation. Not only for western nations but for India and China as well, as their economies become increasingly industrialized.
Conflict.
Africa has been racked by many different types of conflicts from ethnic and religious infighting to other less clear conflicts that have more to do with the control over natural resources than exist in the areas where conflict and war rages. Diamonds, Gold, Silver, Platinum, Uranium, and various other precious resources are located in Africa and as the world becomes hungrier for these resources, Africa will and already has become a battle ground for them. Oil is just one part of a complex and fluid picture that will change once again in 5-10 years. The governments of Africa, most notably Angola and Nigeria have shown a consistently lack of Transparency and long running trends of governmental corruption that has marked its oil policies and revenue accounting. Indeed the Angolan government's problems with oil revenues have received international attention. An investigation was launched by KPMG sometime ago to look into missing oil revenues. Persistent and well documented allegations of money laundering, shady arms deals, ‘parallel budgets' and borrowing against future oil production has been reported. A deep seated corrupt element exists in Angola in particular but in many other African capitals as well. It seems however, that some western interests have profited greatly from the criminality of these leaders and they are loathe to allow genuine democratic elections transpire that would bring about more transparency and accountability to their transactions. Such new leadership would surely kill the cash-cow that enriches so many oil companies, insurance conglomerates, banks and arms manufacturers. Complicity of the oil companies can be seen in the fact that they too, refuse to report the actual amount of money that they pay to the Angolan state. Many of these have a vested interest in the status quo and recognize the need to repress insurgent groups that seek genuine democracy or simply a better distribution of wealth. Indeed, Global Witness reported thatChevronTexaco and ToalFinaElf refused to engage in discussions on transparency. Data obtained by Global Witness shows that $770 million disappeared from the Government treasury. This coupled with the mortgage of future oil revenues displays a reckless disregard for their own population. According to the same report by Global witness, these leaders borrowed 3.5 billion dollars in future oil revenues. These actions lead many to resort to unconventional means in solving the problems of corruption in their regimes.