Catalysts: Indigenous Companies & Low Oil Prices
The theme of Africa Oil & Power, Catalysts for Change, encompasses the major changes that African governments and firms are undergoing in 2017, and the significant developments in the oil, gas, power and finance industries in response to the oil and gas price down-cycle. We asked the leading voices in the African oil, gas and power business to give us their views on the drivers for change in the energy industry.
Senior Investment Manager
The biggest shock to the system has been the crash in the oil prices. That has forced a re-think across the energy sector, and has shifted the balance of power between consuming countries and producers. The drivers behind the collapse in the oil prices, such as the oversupply of crude and the shale gas revolution, will likely continue. We expect the sustained low prices will remain for some time.
It is both a challenge and an opportunity. Producers are having to find efficiencies and for consumers it presents an opportunity to access cheaper fuel sources. We are very optimistic about Africa. The energy requirements of the continent are significant, so we are very, very focused on Africa.
Energy Practice Leader
Centurion Law Group
I believe indigenous African energy companies will be the catalysts for change in Africa’s energy supply chain. Local African companies are excelling as much as the majors all over the continent, for example; in the execution of projects in the areas of engineering, fabrication and construction; marine and subsea services; pipeline system, pipeline leak/clamping; operation and maintenance. Utilizing local capacity creates job opportunities and reduces the skills gap of national employees. This will ensure there is less reliance on expat labour and guarantee that there will be less petro-dollars leaving the continent. The money being made can be re-invested into the countries where the resources are being taken from, as opposed to being exported en masse.