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The Forum > Article Comments > All eyes on Kenya: the next big oil exporter > Comments

All eyes on Kenya: the next big oil exporter : Comments

By James Stafford, published 26/9/2014

Six of the last 10 biggest finds have been in Africa, where - all told - there are some 130 billion barrels of crude oil waiting to be tapped by more than 500 companies.

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To avoid a volumetric oil peak (the net energy peak has passed) these discoveries would need to add 5-10 million barrels a day before 2020 with an extraction cost less than $80 a barrel. A trickle of high cost oil doesn't change much.
Posted by Taswegian, Friday, 26 September 2014 11:05:42 AM
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The spectre of Islamic extremism doesn't bother some!
Well bully for them,and may they lose an absolute bundle, if only to restore some sanity to this market.
Africa is already a melting pot of extreme seething discontent!
So, what do you suppose will ensue, when the usual suspects, horde this new wealth for themselves and their cronies?
Personally, I think we Aussies and anybody with the brains they were born with; would be far better served, by investing in our own far safer resources, and indeed, much much cheaper alternatives.
A troubled Africa, is likely to be less reliable than the already volatile, tinder keg M.E!
Rhrosty.
Posted by Rhrosty, Friday, 26 September 2014 11:43:38 AM
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Don't anyone get too excited. 130 billion barrels does not go all that far.
The world uses 85 to 90 million a day !
It works out that if the find could be brought to maximum output in one year
it would offset the decline for that year, but not the next.
That would need another find of that size, and so on each year.
It will produce just 4.19 million barrels a year IF it could be brought to
maximum output immediately.

The decline in crude oil after about 2017 is expected reach about 3.5 million
barrels a day from about 2020. This rate will be relentless and may in fact
be worse because of the export land factor.
The export land problem is because exporters are selling their fuel at very low prices.
Petrol at the Saudi Arabian pump is 13 cents a litre.
Their population and consumption is increasing with their young population
and the purchase of large vehicles.
This reduces the fuel for export, which is our problem.
Posted by Bazz, Monday, 29 September 2014 2:37:02 PM
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