While the move away from fossil fuels towards more sustainable alternatives is well on the way in many industries, the world still relies on crude oil for the production of different fuel types, plastics and wax.
In 2020, the world produced 4,165 million metric tons of oil.
Africa was responsible for 327 million metric tons.
The Middle East, North America, CIS (Commonwealth of Independent States) and the Asia Pacific region including China individually produced more than Africa as a whole.
Africa oil production hotspots are mainly situated in countries with coastlines, with Nigeria taking the top spot.
According to data from BP’s yearly report, the Western African nation produced more than a quarter of the continent’s oil production.
This stands in stark contrast to Nigeria’s reputation of fostering major technology hubs like Lagos, showcasing the divide between a more traditional, oil-based economy and a more progressive one.
This divide, however, is not unique to African countries: Gulf states like Saudia Arabia and the United Arab Emirates, whose economies still rely mainly on fossil fuel production, are also aiming to restructure their economy into a future-proof one.
Taking the second spot in oil produced as well as oil exported in Africa is Angola.
Overall, global oil production around the world declined by 7% in 2020.
The decrease is especially harsh in OPEC countries, where 12% less oil was produced.
When it comes to the most lucrative oil companies, Chinese corporations occupy the top spots.
The state-run Sinopec generated roughly $332 billion in revenue in 2021, with PetroChina coming in second with $309 billion. Taking third place is US-based Exxon Mobil with annual revenue of $181 billion this past year.
Disruptions in global trade are about to go from bad to worse.
With Russia’s invasion of Ukraine early Thursday, energy costs are soaring, stocks are plunging, Western sanctions are being sharpened, and central bankers already worried about inflation face additional drags from weaker consumer confidence and bigger potential shocks to fragile European economies.
This will not be good for energy prices, production, or trade. We are already seeing, a spike in energy prices. This will have knock on affects on production, especially in Europe, which will dent the recovery of trade from the Covid recession.
Russia is the world’s 16th largest goods exporter, with petroleum, coal and gas being the biggest categories.
Ukraine ranks 48th led by shipments of grain and iron ore, according to 2020 data from the World Trade Organization.
Undermining the rule of law and increased risk always means increased uncertainty and costs for firms operating in trade. Hopefully though, the rest of the world will come together and show a unified front in terms of hard-hitting sanctions towards Russia that will work as a deterrent from further escalation and humanitarian as well as economic losses.
For global supply chains, a kinetic conflict in Ukraine could generate a wide range of challenges. The risks extend beyond higher energy costs to include disrupted air space in the region, higher rates for shipping insurance and cyber attacks.
Energy spike: Oil surged above $100 a barrel for the first time since 2014, triggering fears of a disruption to energy exports at a time of already tight supplies.
Key commodities: Beyond gas, Ukraine has a vast network of infrastructure that’s key to supplying raw materials from crops and steel to Europe and beyond.
Economic headwinds: The energy-cost spike represents a double-blow to the world economy by further denting growth prospects and driving up inflation.
Punitive sanctions: The U.S. and Europe have pledged a harsh package of penalties that go beyond punishments inflicted on Moscow after the Russian annexation of Crimea in 2014.
In the immediate vicinity, there are already shipping disruptions. Russian ports on the Black Sea account for 15% of container imports and exports, its Baltic ports account for close to 50% and its far eastern ports – which are the least likely to get impacted — account for 35%.
The important thing for all in shipping is to stay clear of breaching sanctions. This goes for operators, owners and shippers.
While the full impact of western trade sanctions remains to be seen, they’re likely to have less bite than a decade ago.
Over the past 10 years the % of Russia imports sourced from the EU has fallen to 34% from 38%, while the share of Russian imports sourced from China has risen to 21% from 15%, he said.