Angola has extensive hydroelectric power resources that far exceed its present needs. The Capanda Dam, on the Cuanza River, provides Luanda's industries with cheap power. Two dams on the Catumbela River produce power for the Lobito and Benguela areas (Lomaum Dam). Matala Dam 180 km of Lubango provides power to Lubango and Namibe. The Ruacaná Falls Dam, near the Namibian border, was completed in the late 1970s, but the power station is in Namibia. A 520 MW hydroelectric station on the Cuanza River at Kapanda was tentatively scheduled to have begun production in early 2003. As of late 2002, only three of the country's six dams (Cambambe, Biopo, and Matala) were operational; US$200 million has been allocated to repair the remaining dams, which suffered major damage in the civil war. In 2002, electricity generation was 1.728 TW·h, of which 34.5% came from fossil fuels and 65.5% from hydropower. In the same year, consumption of electricity totaled 1.607 TW·h. Total capacity in 2002 was 700 MW. Electricity is produced by Empresa Nacional de Electricidade de Angola.
Crude oil, in the production of which Angola ranks second in sub-Saharan Africa, has been Angola’s chief export since 1973; it is also the leading source of government revenue, accounting for $2.9 billion in exports in 1994, or 95% of the total. As of end 2004, Angola had proven oil reserves of 8.8 billion barrels (1.40 km3). Oil reserves are along the Atlantic coast, mostly off shore Cabinda and the northern border area between Quinzau and Soyo. In 1999, several oil companies were engaged in production, of which the largest was a subsidiary of Chevron, Cabinda Gulf Oil Company. This company has a 49/51% participation agreement with Sonangol, the state oil company. Other firms included Fina Petróleos de Angola (a Belgian subsidiary), Elf Aquitaine, and Texaco. In 2004, crude oil production averaged 991,000 barrels per day (157,600 m3/d). ExxonMobil subsidiary Esso began development of a section of the Xikomba offshore oilfield in August 2002. Development was planned for a new 200,000-barrel-per-day (32,000 m3/d) refinery in the city of Lobito, on the coast.
Gross natural gas production totaled 8.4 km3 (3.0×1011 cu ft) in 2002. Total natural gas reserves were estimated at 45 km3 (1.6 trillion cubic feet) as of 2002. Domestic demand for refined petroleum products is expected to increase as the economy gradually rebuilds following the end of the civil war. As of 2002, Sonangol and Chevron Texaco had joined forces in a $2 billion project to develop liquefied natural gas from natural gas in Angola's off shore fields. Production was slated to begin in 2007.