The global energy market is in an exciting phase of transition and disruption. Breakthrough technologies are unlocking significant new reserves, processing, transportation and downstream uses that were previously unviable, unknown or inaccessible.
Decarbonisation driven by the environmental sustainability agenda is shifting the energy mix at an accelerating pace, which is particularly evident across North America, Asia and Europe. This seems likely to position gas ahead of coal by 2030 to become the world’s number two fuel.
In this context, Africa’s oil & gas industry is poised for further growth in the wake of new resource finds, technological advances and improved governance. The African oil & gas industry has been through some difficult and challenging years in the wake of the oil price crash.
However, the industry has restructured itself and is more competitively placed in terms of efficiency and operational performance. The outlook for the industry continues to improve with oil & gas companies targeting cautious growth in areas less vulnerable to external volatility while maintaining their cost and operational margins.”
Looking forward, the African oil & gas sector is moving from a cycle of stagnation in exploration, capital expenditure spend and production between 2014-2018 in the wake of the oil price crash, to a more dynamic growth phase. During the downturn the industry restructured itself for improved efficiency and performance and is fitter for this new future.
Oil & gas companies are better placed now to take advantage of shifting geopolitics and trade patterns, new resource finds, a transitioning and decarbonising global energy mix, technological improvements, maturing regulatory environments and improved governance in some countries.
It is critical, however, that the sector retains and builds on its strategic portfolio management, enterprise risk management, capital project delivery, capital sourcing and allocation discipline, market and customer insights and relationships and adopts new technologies and innovations to improve performance if the hard-fought wins in cost savings are to be retained. Progress in addressing corruption and improving corporate governance will also need to be urgently addressed.
Against this backdrop, African NOCs and their partners, contractors and funders must chart a course through increasingly uncertain waters. The future for the African oil & gas industry is exciting as well as challenging and we can look forward to the growing participation of Africa as a global consumer and supplier of energy.
It is this changing context that we are launching the 2020 edition of the Africa Oil Gas Energy Australia Conference (AOGEAC). to take place in Perth from Monday 31st August to Tuesday 1st September 2020 under the theme “The Changing Face of The Oil Gas and Energy sectors in Africa”.
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