A fall in the global oil prices
has led to a reduced level of activity across the African continent and has
affected countries that rely on oil and gas revenue. Despite this, there are
still significant opportunities for Africa’s oil and gas sector.
Chris Bredenhann, PwC Africa Oil & Gas Advisory Leader, said that the
industry needs to look further than the challenges caused by low oil prices and
evaluate the other factors which are shaping the industry. PwC’s ‘Africa Oil & Gas
Review 2016’ reported
that continued cost reduction strategies in the industry, will see an increase
in the demand for innovation in technology.
PwC’s ‘Africa Oil & Gas Review 2016’ analyses
what has happened in the last 12 months in the oil & gas industry within
key African markets. Africa has a proven natural gas base of 496.7 trillion
cubic feet (Tcf) down marginally from 2014, with Nigeria, Libya, Algeria and
Egypt totalling 90 per cent of the continent’s natural gas
production.
Bredenhann
said: “The complexities and challenges facing Africa’s oil & gas
industry have become daunting. As uncertain regulatory frameworks, taxation
requirements and corruption continue to rank at the top of industry’s
challenges in Africa, it also high time that governments made significant
changes. Furthermore, players must look at the current state of the industry as
an opportunity to reinvent themselves. Given the state of the industry, we
think that stakeholders must also consider making changes to their business
models. Change is the way to survive in the ‘new energy future’. We need to see
new business models, new products, new energy sources and new strategies to
meet the new reality.” (Oil Review Africa)
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