Our neighbours such as Uganda and South Sudan have been there before. Uganda is expected to start producing 20,000 barrels per day(bpd) soon; South Sudan has just shut down its 355,000 barrels per day wells.
News in Kenya is that the crude oil potential exceeds expectations. In Tanzania reports of new finds of natural gas wells are almost a weekly thing.
We should cheer the new finds. After oil are causes for abundance elsewhere. But these news began to worry me. No I am not worried about civil strive. I am worried about Economics of fuels: Could we be fueling a fuel glut in future? But I thought I was just letting my mind run wild until I stumbled on a review of a paper by a senior fellow at Harvard University, who thinks in the same lines.
He argues that new oil finds coupled with advances in extraction technologies could pump 110 million barrels per day by 2020 just when the oilfields in East Africa are expected to come on stream. At that time production could exceed demand leading low crude prices.
Could our investment go to waste? or are our imaginations running wild?
Read the review at http://www.thenewamerican.com/economy/markets/item/11942-harvard-senior-fellow-peak-oil-is-history