Africa Final Exam Study Guide

Africa Final Exam Study Guide - Africa Final Exam 1....

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Africa Final Exam 1. Identify the major political and environmental regions of modern Africa 2. Describe the impact of uncertainty on daily life in a variety of African locales 3. Compare and contrast African views of development with Western understandings of the concept 4. Express well reasoned opinions about how climate change can impact long term resilience of African peoples' health and their environment 5. Describe some of the tools used by scientists and policy makers to measure and evaluate environment and social development. 6. Explain the possible roles local, national and international institutions might play in promoting long term improvements in environmental sustainability and health outcomes. 7. Evaluate development programs to determine if they support resilience and sustainability. Unit 4: Energy and the Resource Curse As a continent, Africa is blessed with a huge amount of natural resources, from minerals to timber to wildlife. Yet some economists and development specialists suggest that this is instead a curse and does not lead to improved livelihood outcomes. Energy is of particular concern--both because African petroleum resources are an investment hotspot and because improved access to energy is critical to achieving any and all of the Millennium Development goals. By the end of this unit you should be able to: 1. Identify the major players in the rush for African resources. a. National Oil Companies (NOCs): vertically integrated, countries that have them own all of the oil produced-> Aramco (Middle East) is the biggest in the world. b. Majors: large, vertically integrated, publicly traded oil companies like Shell and Exxon. c. Wildcats: independent, highly mobile oil companies that just do oil exploration and production c.i. Africa is made for Wildcat oil companies… good contractual context, they have a high tolerance for risk, often able to negotiate very low PSAs so they get the majority of the money and the government only gets a small cut. d. All of the agreements are made with the national government; local leadership and voices are not taken into account. e. Major countries involved: Nigeria, Gabon, Chad, Sudan (especially South Sudan), Angola (Cabinda) 2. Describe why African oil is such a critical resource globally and distinguish the current rush for this resource from earlier periods of investment. a. We are reaching peak oil in a lot of the places that historically have produced a lot of our oil. Additionally, the United States is trying to reduce its dependence on Middle Eastern oil and Africa is a new frontier. Governments are starved for cash and are willing to sell rights to oil exploration and drilling very inexpensively. Much of the oil in Africa is of high quality and is not too expensive to drill and refine (light and sweet). A lot of the oil is offshore, which is another perk, but because of this the resource has not been heavily invested in the past; new technology has made it economical to drill deep and offshore. Oil is so expensive to buy right now that it is worth exploring and producing in Africa:
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Africa Final Exam Study Guide - Africa Final Exam 1....

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