''Sino-U.S. Energy Competition in Africa''

With oil prices hitting record levels of US$70 per barrel in recent weeks, major energy consuming countries are engaging in an increasingly heated competition for energy resources on the world stage. Nowhere is this more evident than between the United States and China, the world's first and second largest energy consuming countries respectively. In the contest for energy resources, numerous "stages" of competition are emerging, including the Middle East, Central Asia, Latin America, and the East and South China Seas. However, Africa is fast emerging as one of the most volatile stages of Sino-U.S. energy competition, given its vast reserves of energy resources and concentration of internal security crises. [See: "Setting the Stage for a New Cold War: China's Quest for Energy Security"]

Africa owns about eight percent of the world's known oil reserves with Nigeria, Libya and Equatorial Guinea as the region's leading oil producers. Seventy percent of Africa's oil production is concentrated in West Africa's Gulf of Guinea, which stretches from the Ivory Coast to Angola. The low sulphur content of West African crude makes it of further strategic importance.

However, the region is also vulnerable to instabilities ranging from piracy to terrorism, interstate and tribal conflict, AIDS and political uncertainties. Given the weak governments and significant Muslim populations of the region, the African continent may also emerge as a hub for al-Qaeda-linked terrorist groups.

Finally, oil-rich countries in Africa have been unable to escape the "curse of oil," which has fueled corruption, conflict, and environmental degradation across the region. For instance, while Nigeria has earned US$300 billion in oil revenues over the last 25 years, per capita income remains below US$1 per day. Nigeria is also subject to ethnic violence, oil strikes and sporadic attacks on oil infrastructure by the Niger Delta People's Volunteer Force. Adding Sino-U.S. energy competition to this volatile mix could further destabilize the region.