Gabon's industry is centered on petroleum, manganese mining, and timber processing. Most industrial establishments are located near Libreville and Port Gentil. Virtually all industrial enterprises were established with government subsidies in the oil boom years of the 1970s. Timber-related concerns include five veneer plants and a large 50-year-old plywood factory in Port Gentil, along with two other small plywood factories. Other industries include textile plants, cement factories, chemical plants, breweries, shipyards, and cigarette factories. Gabonese manufacturing is highly dependent on foreign inputs, and import costs rose significantly in 1994 when the CFA franc was devalued. Increased costs and oversized capacity have made the manufacturing sector less competitive and it mainly supplies the domestic market. The government has taken steps to privatize parastatal enterprises.
Due to the fact that the Gabonese economy is dependent upon oil (crude oil accounts for 80% of the country's exports, 43% of GDP, and 65% of state revenue), it is subject to worldwide price fluctuations. Gabon is sub-Saharan Africa's third largest crude oil producer and exporter, although there are concerns that proven reserves are declining and production has declined as well. Thus the country has taken steps to diversify the economy, and to engage in further petroleum exploration. The Sogara oil refinery at Port Gentil is the sole refinery in Gabon. The country produced 302,000 barrels of oil per day in 2001, which was a decrease of 9% from 1999 production levels. Gabon's proven oil reserves were estimated at 2.5 billion barrels in 2002, and its proven natural gas reserves were estimated at 1.2 trillion cubic feet (Tcf).