US Shale: What Now For Africa's Oil Giants?

US Shale: What Now For Africa’s Oil Giants?

On October the 2nd 2014, African Enterprise Investor ran a post on the cut in oil imports to the USA from Africa by 90 per cent. It asked the question is that bad?

Shale is a game changer. The big opportunity for African countries to have developed their economies on the back of high oil prices has gone and is rapidly declining further with falls in the price of a barrel by up to 40 per cent over the course of the last year which will adversely affect oil export dependent countries drastically. The new paradigm presents a different opportunity for the African oil giants to rethink their development agenda. Diversify or die!

Terry Chapendama of Seymour Sloan in a post on Linkedin captures the new world of low oil prices and a resurgent USA no longer dependent on what it considers to be unstable parts of the world.

Read: OPEC v The US: A Shifting Balance Of Power

Image credit: Oil Painting, CC BY