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AFRICOM The U.S. Military in Africa

GoG Oil Production: The GoG is the third largest source of US oil imports, after the Persian Gulf and South America The GoG provides roughly 55 percent of US imports of light, sweet crude oil Over the next 10 years, GoG oil production will grow by 40 percent By 2020, the GoG will be one of the world's top four oil producers The importance of oil production in the Gulf of Guinea is increasing because the GoG produces light, sweet crude oil which is preferred by US refineries. Current trends in Chinese oil production suggest that competition for light, sweet crude will intensify, as China moves towards the same slate of high value products as the US and Europe. Economic impact on the EU and US economies from a loss of oil from the GoG would be significant. Modeling done by the National Commission on Energy Policy and Securing America’s Future Energy shows that a disruption of 600,000 barrels a day of Nigerian production could produce prices above $100/barrel and gas prices above $3.25/gallon in likely winter 2005 market conditions. No linkage has been shown as of yet between oil theft that occurs in the Niger Delta and terror organizations—but it is a possibility.

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