Oil boom in Africa could be a mixed blessing

WASHINGTON — The oil boom in Central and West Africa could result in prosperity or disaster in the region, depending on how wisely the revenues are spent, according to a study released Wednesday.

The report by the Center for Strategic and International Studies said the growing oil exports of Nigeria and Angola will significantly enhance the global position of the two countries.

Also, greater attention will be focused on “emergent, unstable producers” in the region — Equatorial Guinea, Chad and Sao Tome and Principe, the report said.

“With proven reserves of more than 60 billion barrels, the region today provides one in four new barrels of oil coming into world markets from outside the Persian Gulf,” said the report, titled “Rising U.S. Stakes in Africa.”

Secretary of State Colin Powell will address a Capitol Hill conference today at which the report will be discussed.

The study said the region could add 2.5 million to 3 million barrels a day to world markets in the next 7 to 10 years.

The rise in oil production “could bring prosperity or disaster to a fragile region and to complex and expanding U.S. interests there,” the study said.

The benefits, it said, will be felt throughout the region if the exporting nations achieve greater stability, invest wisely, improve governance and respect the rule of law.

Alternatively, the report said, if these nations “fall victim to the pattern of resource-rich developing nations, corruption will deepen, wealth will be squandered, competition for oil wealth will aggravate internal stability and cross-border violence, and the health, environmental conditions, and life chances of the region’s 200 million citizens will remain stalled.”