Capacity constraints and the availability of capital to invest in new technologies are some of the obstacles impending the African continent from developing and producing its own oil and gas resources.
This is despite the fact that the continent has an estimated over three hundred billion barrels of crude oil and gas which have never been explored.
These views emerged at the end of a three-day Future Energy Africa conference which was held in Cape Town this week.
With fuel prices rocketing to their highest levels since 2010, Africa and other emerging markets are suffering the consequences.
Participants at this conference say policy initiatives from countries such as the US, which imposed unilateral sanctions against Iran, are beginning to be felt throughout the world, especially among non-oil producing markets.
The sanctions on Iran have resulted in 2 million barrels of oil being taken off these markets.
Futurist & Technology Strategist Pieter Geldenhuys suggests innovative ways to mitigate against these external factors.
“Trump, worrying about Iran that doesn’t have a nuclear weapon, than North Korea that has nuclear weapon, it boogles the mind that become unforeseen and unpredictable and for more agile to react to these changes.”
Oil & Gas head at Standard Bank Paul Eardley-Taylor says all is not lost, given the immense oil and gas resources that have recently been discovered on the continent.
“The Mozambique gas discovery since 2010 are enormously exciting because what it means is that of a total of u$55 billion by our estimation.”
Delegates emphasized that the demand for oil remains, despite gas discoveries and new technologies such as electric and battery cars.
The conference will return to Cape Town again in October next year, to review the progress made.
