TEXT D Many A decade ago, at a
time when places like Ivory Coast and Equatorial Guinea were being largely
ignored by the petroleum world majors in favor of proven mega-sources like
Nigeria and Angola—and when their drilling sites could thus be leased for a
relative song—Joe Bruso helped put these states back on the map. Bruso was part
of a small team working for United Meridian Corp. (later acquired by Ocean
Energy) that helped discover and develop the big Zafiro field off Equatorial
Guinea. The impact for that country of half a million people, Bruso said in a
phone interview from Houston, "has been extraordinary", it was not uninteresting
for United Meridian either. Meantime, Ivory Coast, where Bruso and his partner,
Coy H. Squyres, discovered the Panthere gas condensate and Lion oil fields, went
within a few years from being a net energy importer to a net exporter, and from
being an overlooked bit of West African real estate to a place where "you just
can’t get acreage" for drilling. Those findings, facilitated by
the use of exploration data left behind by the majors, were made on a $1 million
annual budget over just four years. The huge returns on a relatively small
layout sparked a kind of offshore land rush. While the impact of
such finds has been uneven—some of West Africa’s poor say they have seen little
of the new wealth—oil and gas are expected to flow for years in ways that are
making this one of the world’s more significant producer regions. Hundreds of
sites remain to be explored. "It’s amazing the leap to prosperity that the whole
place has made," Bruso said of Equatorial Guinea. He is now president of
Sovereign Oil Gas, a small Houston-based firm. American boosters
say African oil can help lessen U.S. dependence on Middle Eastern oil. Indeed, a
group representing the industry and its backers in Congress and government have
called for the Gulf of Guinea to be declared of vital strategic interest. Its
waters border Cameroon, Congo, Gabon, Equatorial Guinea and Nigeria. West
Africa, led by Nigeria and then Angola and Gabon, now supplies the United States
with roughly 15 percent of its oil, but that figure is expected to reach 25
percent over the next decade. West African crude oil tends to be of good
quality, selling just below the Brent benchmark. It can reach refineries in the
Gulf of Mexico in just 20 days, half the time required from the Middle East, at
savings of 35 cents per barrel, according to Petroleum Intelligence
Weekly. Representative William Jefferson, Democrat of Louisiana,
has called for a "full-fledged makeover of the U.S. strategic relationship with
Africa" to take advantage of its petroleum potential. "The United States stands
to benefit by having a stable, abundant and relatively inexpensive source of
high-quality oil; Africa benefits in that it will receive billions of dollars in
badly needed investment and government revenue," he said. "It is a classic
win-win situation." West African oil production is now about 3.5 million barrels
per day, said Michael Rodgers, senior director of upstream services at PFC
Energy in Washington. West African reserves are forecast to
reach 40 billion barrels by 2010, according to Petroleum Intelligence Weekly.
All this, Rodgers said, is not going to lead to a new Middle East-size source of
oil for the West. His own estimate of total African reserves of 80 billion
barrels is a fraction of the 650 billion to 700 billion barrels in the Middle
East. Still, he said, it will diminish "the importance of the Middle
East". For Bruso, the development of West African oil is far
from complete. A spate of" billion-barrel discoveries" in Nigeria and Angola are
yet to be developed, he said, adding that there are seven big sites in
development, each likely to produce around 250 million barrels a day. "That’s a
huge new volume that will be hitting the market starting between 2004 and 2007,"
he said. The Gulf of Guinea is strategically important to the United States because ______.
A.roughly 15% of oil production of West Africa is supplied to the United States B.West African reserves are forecast to reach the Persian Gulf size C.its oil can help lessen U.S. dependence on Middle Eastern oil D.its waters border Cameroon, Congo, Gabon, Equatorial Guinea and Nigeria