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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: elmatador who wrote (57324)12/20/2004 6:29:41 PM
From: RealMuLan  Read Replies (1) of 74559
 
West African Oil Gives U.S. New Security Challenge
Mon Dec 20, 2004 11:25 AM ET

By Nick Tattersall

NIAMEY, Niger (Reuters) - Sent from China to hunt for oil under the Sahara desert, Wenhui Tan looked distinctly uneasy as the conversation turned to security fears ranging from the spread of Islamic radicalism to cold-blooded banditry.

"What have you heard?" asked the China National Petroleum Corp. executive, lighting a cigarette and gesturing at a map of the West African desert country Niger, with two huge exploration blocks outlined in black ink.

The United States shares his concern as it ventures into remote corners of West and Central Africa in search of alternative oil supplies to the turbulent Middle East, a move that could also act as counterweight to OPEC's monopoly power.

The world's biggest energy consumer hopes the African region will provide up to a quarter of its oil imports within a decade, up from 14 percent now, and is working to guarantee stability in one of the most volatile parts of the planet.

From coup attempts inspired by dreams of petrodollars to concerns over Islamic extremists, political anarchy, civil war and piracy, the region around the Gulf of Guinea is seething with tensions that would faze the most intrepid investor.

"We are in no position to endure a serious oil supply disruption from the Gulf of Guinea today. The global oil market is stretched to capacity," said David Goldwyn, a former assistant energy secretary in the Clinton administration and head of a Washington-based strategy think tank.

"We are not ready for trouble, but trouble is on the horizon," he told a U.S. Senate committee earlier this year.

Washington is particularly concerned that militant Islamists may gain a foothold in its new oil haven, where policing is often lax, millions of youths are unemployed and the sheer size of territories makes maintaining full control almost impossible.

"It's a good place for people who want to be left alone to operate outside the reach of the law -- to go unnoticed, to take time to recruit, to regroup," General Charles Wald, deputy commander of U.S. European Command, told Reuters.

RING-FENCING NIGERIA

Fearing that militants may exploit the lack of authority in vast countries on the southern fringe of the Sahara, Washington has sent Marines and special forces to train troops in four countries.

Continued ...

reuters.com

BTW, elmat, hope you have a nice visit home.
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