By Adedapo Adesanya
Energy experts say the growing oil crisis across the globe is a wake-up call for the African continent to become less dependent on foreign oil supplies.
The cost of fuel has risen sharply, with Brent crude oil hitting a 14-year high in recent weeks and has so far remained firmly above $100 per barrel.
With the invasion of Ukraine by Russia, concerns have arisen about the world’s ability to meet its energy needs. The United States and the United Kingdom have banned Russian oil imports, with the European Union (EU) under pressure to follow suit.
Regardless of the outcome, the squeeze is being felt across the globe. Some governments have decided to subsidise their citizens’ energy bills, or to reduce the cost of public transport, as has been the case in New Zealand.
Evaluating Africa, Mr Paul Sinclair, the vice president of energy for Africa Oil Week said that African countries are re-evaluating their energy mix options.
“There are untapped oil and gas reserves in Africa which we believe should be developed with good carbon management strategies. Oil and gas offer solutions to regional and international energy demand.
“Whilst the world transitions to low carbon it is imperative that Africa develop its upstream capabilities alongside renewable energy solutions which will result in a win-win for all,” he said.
Mr Sinclair noted that African countries are re-thinking their approach to energy, pointing out that Africa’s energy requirements need to factor in the economic imperatives of the continent.
“According to the United Nations, an estimated 490 million people live below the poverty line and less than half of African countries have experienced inclusive growth in over twenty years. By adding an energy crisis to the mix, I have little doubt that we will see a strategic review in this sector,” he stated.
However, oil and gas are not the only options for Africa as pointed out by Mr Sinclair, who explained that only 18 of Africa’s 55 nations currently produce oil, led by Nigeria, Angola, Algeria and Egypt which together produce less than 10 per cent of the world’s output.
“When you study the numbers, you can see that Africa has no choice in the current circumstances to increase its energy security,” said Mr Sinclair.
This is already happening as South Africa has been exploring potential gas deposits off its coastline, while the Gambia is looking to license two oil-exploration sites in the coming months.
Mozambique and Tanzania have reportedly discovered crude oil, while exploration has been undertaken in some other African countries, such as Chad, Sudan, and Namibia.
Approximately 2,400 hydrocarbon deposits have been discovered in Africa, 700 of them large enough for significant exploration.
“2022 will be a significant year in the African energy sector” predicts Mr Sinclair. “The continent knows it needs to expand its production of hydrocarbons and renewable energy production if its economies are to remain competitive. We expect this will be an area of high investment,” he noted.
Dipo Olowookere