African Entrepreneurship Record-Chapter 710 - 14: Petroleum Industry Layout

East Africa has finally discovered oil, which has allowed Ernst to breathe a sigh of relief. The first step is always the hardest, and only by completing it can East Africa's energy security be truly in its own hands.

At least for the next few decades, East Africa's energy security is assured. Firstly, there are coal mines, which are enough for East Africa's own use. The coal mine resources in South Africa, Zimbabwe, or Botswana would not be considered inferior even in Europe. Now that oil has been discovered, although the reserves are not yet clear, the first well begets a second, and there will be more in the future.

More important now is how to utilize this oil. East Africa has virtually no foundation in this area. Previously, East Africa's refined oil products were mainly imported from the Austria-Hungary Empire, Romania, and the United States.

Thus, East Africa practically lacks an oil industry, necessitating the help of the Heixinggen Consortium and the return of East African students studying abroad to conduct relevant theoretical research at home.

Cooperation between the Heixinggen Consortium and the East African government is quite common in East Africa, with both parties jointly setting up East Africa's industrial framework, and this time is no exception. 𝑓𝑟ℯ𝘦𝓌𝘦𝘣𝑛𝑜𝓋𝑒𝓁.𝑐ℴ𝓂

"Your Highness, the military has already taken over the oil fields in Turkana province. We will try to keep this news controlled domestically. Although Turkana province is also a border province, it's adjacent to the Abysinnia Empire and the Ethiopian Highlands, with mountains as obstacles, making this oil field location very conducive to maintaining confidentiality."

The East African military holds the oil fields in high regard, raising the level of automotive, internal combustion, and Defense Army industries, all of which are closely related to the oil industry.

After all, East Africa previously relied on imported oil, and the import routes face the risk of being cut off by foreign countries. The main channels for East Africa's oil imports are the Mediterranean and the Red Sea.

Yemen once demonstrated how to leverage strategic geographic locations to hold this crucial global trade route hostage.

Now, domestically produced oil from East Africa solves this problem, so the military must ensure its security from the perspective of energy security.

This is related to the future development of the military. The advent of the automobile has opened unlimited possibilities for the military, and now with a secure oil supply, the East African military can fully invest in this area.

"Very well, this isn't just for energy security; there's also the technological aspect where we need to accumulate expertise. Firstly, relying on local oil resources, we should build refineries. Oil is not only an energy source but also a crucial chemical raw material. We need to intensify our research efforts in this field to break the American monopoly, which requires time. We are currently the pursuers, so research needs to remain confidential to continue lulling our competitors."

The American oil industry has developed for decades now, and in other regions, only the Austro-Hungarian Empire and the Heixinggen Consortium, using the talents and technological accumulation from German and Europe, have established a relatively basic oil refining industry chain in a comparatively short time.

"First, gather a group of experts to go to Turkana province to study the causes of the oil fields and deduce theories. Afterwards, we need to increase our exploration efforts in Turkana province."

"At the same time, select some of our workers from the Austro-Hungarian Empire and Romania, and have them prepare to possibly stay permanently—relocating their families and industries to East Africa."

"The most important thing right now is the machinery and equipment. We need to quickly place orders in the German region, purchasing under the guise of supplying to the Romanian oil fields, and then transport them to East Africa."

In this area, East Africa finally doesn't have to worry about technological issues, as Ernst had already set up related arrangements in Europe.

"Your Royal Highness, there remains a problem of oil transportation and urban development. You must understand that the southern environment of Turkana province isn't very favorable, so if we are to invest in local construction, there will certainly be challenges."

The climate environment in Turkana province is relatively extreme. The north, due to the uplift of the Ethiopian Highlands, receives abundant rainfall and has a humid climate, while the southern plains are just the opposite.

The oil fields are located in the south of Turkana province this time, so overcoming the adverse climate conditions is one issue; another is the transportation problem. Like the Somali Region, Turkana province holds certain standing within East Africa's economy but lacks a railway.

According to Von der Leyen's idea, it's better to construct a railway directly running through the oil fields to the border between East Africa and the Abysinnia Empire.

After all, the Abysinnia Empire is East Africa's largest land trade partner. This not only facilitates the southern transportation of oil but also improves Turkana province's transportation infrastructure, further expanding trade between East Africa and the Abysinnia Empire, accelerating economic development in Turkana province.

"Agreed," Ernst consented to the matter without much deliberation.

The northeast does indeed require such a railway, just as initially the construction of the Dodoma to Bujumbura railway was to transport rubber resources from the inland to other areas in East Africa.

Apart from this, the railway can significantly enhance local living comfort. The oil industry is closely related to the Second Industrial Revolution and, like electricity, automobiles, and rubber in East Africa, is part of emerging industries.

With the discovery of oil resources in Turkana province, East Africa's oil industry layout should commence promptly. The oil industry in new industries is among the later developments, not to mention that East Africa's oil industry is still in a "zero" state.

"We must ensure the living quality of experts and oil workers. Given that globally, the oil industry is an emerging sector, and the northern regions are not as livable as the highland areas—with even basic living supplies and food categories inferior to the east—even though Romania and eastern Austria-Hungary aren't what one might call developed, they certainly have better conditions than East Africa's north."

"Therefore, we should improve the local living conditions, at least to ensure the essential supplies can be delivered to Turkana province with reasonable speed," Ernst said.

Oil production sites universally don't lack associated living facilities, easily forming industrial clusters. Relying on oil can drive the development of numerous upstream and downstream industries, so Turkana province should see decent development through oil dividends in the future.

Though challenging, overcoming the arid desert and semi-desert environment is feasible. Ernst believes this could also build East Africa's experience in constructing railways in desert conditions.

East Africa possesses millions of square kilometers of tropical desert climate areas, particularly in the resource-rich provinces along the Nile River to the north (South Sudanese oil resources), southwestern Africa (Namibian oil, coal, iron, uranium, etc.), and the Somali Region.

Seemingly, East Africa's main desert regions have relatively rich mineral resources, and mineral development is inseparable from railway construction. Until now, East Africa has yet to build a railway in desert areas, so constructing a railway in Turkana province at this time is also a good choice.

Moreover, Turkana province's population is not insignificant, differing from several other regions. East Africa has a relatively long history of developing Turkana province, and this railway, considering the active trade expansion efforts and trade with the Abysinnia Empire, evidently holds profit potential. It can simultaneously resolve the historic lack of railway in northeastern East Africa.