Energy experts say the growing oil crisis around the world is a warning for the African continent to become less dependent on foreign oil supplies.
Fuel costs have risen sharply, with Brent crude hitting a 14-year high in recent weeks. It remains firmly above $100 per barrel at the time of publication.
With the military conflict in Ukraine, concerns arise around the world’s ability to meet its energy needs. The United States and Britain have banned imports of Russian oil, with the European Union under pressure to follow suit.
“Nobody really anticipated the need to grow significantly,” Vicki Hollub, chief executive of Occidental Petroleum said during a recent conference in Texas (https://nyti.ms/3NCxrG3). “That’s the challenge now. If you don’t plan for growth, you won’t be able to achieve today’s growth.”
Regardless of the outcome, the pressure is felt all over the world. Some governments have decided to subsidize their citizens’ energy bills, or to reduce the cost of public transport, as is the case in New Zealand (https://bit.ly/3NDe5QQ).
What about Africa?
“African countries are re-evaluating their energy mix options,” said Paul Sinclair, vice president of energy for Africa Oil Week (Africa-OilWeek.com/Home), the continent’s leading energy conference.
“There are untapped oil and gas reserves in Africa which we believe should be developed with sound carbon management strategies. Oil and gas offers solutions to regional and international energy demands,” said Sinclair.
“As the world transitions to low carbon, it is imperative that Africa develops its upstream capabilities together with renewable energy solutions that will result in a win-win for all”
Sinclair said African countries were rethinking their approach to energy.
“I hope we will see major changes in policy in many countries to meet their energy needs, amid this crisis, when heads of state, ministers, business leaders and stakeholders gather at Africa Oil Week 2022 in Cape Town, October 3.rd – date 7.”
Sinclair said Africa’s energy needs need to take into account the continent’s economic interests.
According to the United Nations (https://bit.ly/3IUviBN), an estimated 490 million people live below the poverty line and less than half of African countries have experienced inclusive growth for more than twenty years,” said Sinclair. “By adding the energy crisis to the mix, I have little doubt that we will see a strategic review of the sector.”
However, oil and gas are not the only options for Africa. African Green Energy Summit, also in Cape Town 3 Octoberrd – The 7th, will be sent in conjunction with African Oil Week to ensure the overall energy mix is handled from country to country. The joint event will allow delegates to get a 360-degree view of the sector during times of disruption.
Only 18 (https://bit.ly/3DslCgE) of the 55 African countries currently producing oil, led by Nigeria, Angola, Algeria and Egypt. Together, they make up less than 10% (https://bit.ly/36YlcCH) of world output.
“When you study the numbers, you can see that Africa has no choice in the current situation to improve its energy security,” said Sinclair.
It’s already happened. South Africa has been exploring potential gas deposits off its coast, while Gambia is seeking permits for two oil exploration sites in the coming months.
Mozambique and Tanzania are reported to have discovered crude oil, while exploration (https://bit.ly/373AWek) has been carried out in several other African countries, such as Chad, Sudan, and Namibia.
About 2,400 hydrocarbon deposits (https://bit.ly/3tUuNUj) have been found in Africa, 700 of which are large enough for significant exploration.
“2022 will be a significant year in Africa’s energy sector” predicts Sinclair. “The continents know that they need to expand hydrocarbon production and renewable energy production if their economy is to remain competitive. We hope this will be a high investment area,” he said.
About African Oil Week and the African Green Energy Summit
African Oil Week Deals 4 days of pioneering insight, from ministerial panels to strategic views designed to encourage investment upstream of Africa for the benefit of the continent. At the heart of the event are some of the most interesting insights into the upstream strategies of governments from across the continent.
These vast and diverse networking opportunities have resulted in an unprecedented return of delegates year after year.
AOW is globally renowned for bringing together the most senior delegates each year. In 2021, AOW welcomes 30+ Ministers and Government Leaders, 2,000+ C-level delegates, representativesand hundreds of SVP and VP Africa, Exploration and New Ventures – making this event the most influential energy conference in Africa.
Meanwhile African Oil Week will maintain its own identity as a pure Hydrocarbons event to advocate for upstream development. The Green Energy Africa Summit will also play its part in fostering an enabling environment to ensure foreign direct investment is deployed into game-changing projects that will reduce energy deficits and provide energy access for the entire continent.
To learn more about how you can get involved, whether to exhibit, sponsor, or attend as a delegate, click here (https://bit.ly/3wVxc2L). Ask now (https://bit.ly/3uGkiTI) to secure savings early by 2022.
Distributed by APO Group on behalf of Africa Oil Week.
Group Accounts Director, AOW at Ogilvy PR South Africa
Mobile: +27 76 449 1271
Email: [email protected]
Vice President of Energy & Director of Government Relations, African Oil Week
Mobile: +44 7825 311791
Email: [email protected]
This Press Release has been issued by APO. Content is not monitored by the Business Africa editorial team and is not content that has been vetted or validated by our editorial team, evidence readers or fact checkers. The publisher is fully responsible for the contents of this announcement.
What the Global Oil Crisis Means for Africa
Source link What the Global Oil Crisis Means for Africa