2023, Vol. 4, Issue 2, Part C
Empirical comparison of oil demand of African oil producing countries with OPEC in the 21st century
Author(s): Bailey Saleh and Fatima Shehu Liberty
Abstract: The discovery of petroleum oil in Africa over the past six decades has seen to the exports of much crude oil, which served as the major foreign revenue earner for African oil producing countries. However, as the African continent keyed into the fast unwinding technological and industrial development, coupled with the nature of growing more complex societies; it brought about phenomenal increase in the local consumption of refined oil and other petroleum products. In view of all these dynamics, African oil producing countries had to evolve deliberate policies of refining and processing of some of their crude oil locally to meet up with the expanded demand for refined oil and petroleum products by their societies. South Africa a non-oil producing country is actively involved in refining and processing activities where it is ranked 3rd after Egypt 1st and Algeria 2nd; where they outperformed traditional African producing oil countries of Nigeria (4th position) and Libya (5th position). In spite of the building of these refineries (increased refining activities) on the continent, Africa paradoxically found itself as a major importer of refined oil and other petroleum products from foreign countries that are buying its crude oil. The lackadaisical performance of African countries in terms of refining of oil and processing of petroleum products is largely attributable to leadership failures; where those that rule and are still ruling most countries in the continent are surrogates in power who are ill-equipped, unpatriotic and bereft of vision. The avoidable consequence of this is that when there is problem in the home countries of foreign refiners of oil or any other contingencies such as COVID-19 as well as other problems of transportation of refined oil, it automatically generates scarcity of the product in the domestic environment of African countries. It is because of this inability of African countries to take advantage of their membership of OPEC to leverage on their refining capacities and the processing of petroleum products to meet up with the continent’s local consumption needs and generate more employment and empower greater numbers of our citizens that forms the motivation for this study. The study is a qualitative one where data was generated through secondary sources such as academic journals, bulletins, textbooks, scholarly papers, and internet materials. Data was analyzed through descriptive and explanatory method.
Pages: 260-267 | Views: 199 | Downloads: 71
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How to cite this article:
Bailey Saleh, Fatima Shehu Liberty. Empirical comparison of oil demand of African oil producing countries with OPEC in the 21st century. Asian J Manage Commerce 2023;4(2):260-267.
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