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Not too long ago, if you asked any energy insider where in the world the most exciting energy hot spot was, you would have gotten a surprising answer: Africa.

It's true; Africa was a hotbed of oil activity just a few years ago.

In 2013 alone, six of the world's 10-largest global oil discoveries were made in Africa. Not to mention the huge natural gas fields found offshore of Eastern Africa. The waters off Mozambique, for example, are estimated to hold over 180 trillion cubic feet of gas!

And the oil industry was anxious to develop the resource. In February 2014, there were 154 rigs drilling in Africa, the highest level since 1983.

But oil's 50% plunge over recent months is threatening the bright promise these discoveries once held.

The World Bank, in its 2015 Global Economic Prospects report, labeled East Africa as a “new frontier” for economic growth, thanks to its rich energy resources. Still, the World Bank pushed back the date for growth from 2017 to sometime after 2020, thanks to oil's decline.

Tap on Low

As elsewhere, projects in both West and East Africa are being delayed because of cutbacks made by oil companies in response to lower profits. Africa is especially susceptible to the leaner environment because most of the projects are offshore, where a single well can cost hundreds of millions of dollars.

British oil company Tullow Oil PLC (TUWOY) is among the most active oil explorers on the continent. Yet, even Tullow said in January that it wouldn't drill a single offshore exploration well in Africa this year.

The company also said it would reduce its rig count in Kenya, Uganda, and Ethiopia. And it cut its overall capital budget from $1 billion to about $200 million.

Africa's oil boom is facing other problems besides low oil prices, too.