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. It remains firmly above $100 per barrel at the time of publication.
With the military conflict in Ukraine, concerns have arisen around 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 under pressure to follow suit.
“Nobody really anticipated needing to grow significantly,” Vicki Hollub, CEO of Occidental Petroleum said during a recent conference in Texas.
“That’s the challenge now. If you didn’t plan for growth, you’re not going to be able to achieve growth today,” she adds.
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.
What about Africa?
“African countries are re-evaluating their energy mix options,” says Paul Sinclair, VP of energy for Africa Oil Week, the continent’s leading energy conference.
“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” Sinclair said.
“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.”
Sinclair said that African countries are re-thinking their approach to energy.
