This article looks at supply trends in recent years and the evolving position of (esp. Sub-Saharan) Africa. With proven oil reserves rising to equal Iraq’s, its relative proximity to the US means that more US oil is sourced there. At the same time, Middle East oil has been increasingly directed eastward. That’s not to say that China isnt also pumping out of Africa.
More interesting perhaps is developed nations pleading for OPEC to raise output. They already have (effective this month). And, as i’ve said before, i dont think that there’s enough room in there to significantly affect global prices. Especially with global stockpiles shrinking over a period when they were historically replenished.
What could lower, aside from the (again, previously mentioned) tapping of new sources (such as Africa and the Arctic) is the negative drag high energy prices inflict on the global economy. And, indeed, reducing subsidies in Asian (like China’s recent 10% price hike) and Middle Eastern countries (as well as raising taxes in the US).
[…] the ME region has recently been topped by Africa as the largest provider of oil to the US. Yes; the ME is a (the?) critical region for oil […]