Africa’s oil and gas potential despite fall in crude prices
Oil and gas is of critical importance to the African economy. In fact, it is estimated that 57% of Africa’s export earnings are derived from hydrocarbons. Within the continent, North and West Africa are host to the most renowned producers; some of the countries in those regions are also among the most dependent on oil and gas revenues in the world. In recent years, East Africa has also emerged as an exciting prospect for international oil companies. The sharp drop in international oil prices since mid-2014 will have varying effects on African economies: a group of about nine countries will be severely negatively affected; many others will however benefit from the drop in oil prices, as it will provide a boost to consumers’ purchasing power and will reduce fuel subsidy costs for those governments that still provide subsidies.
Africa’s oil and gas industry continues to attract global investment, despite the challenges which include a sharp downturn in crude prices over the last year. The clip below shows highlights from the 22nd Africa Oil Week that recently took place in Cape Town, South Africa and discussed the industry landscape with Edward Voelcker, Partner in Energy and Natural Resources at KPMG Nigeria and Gor Semelang’o, CEO of PetroKenya Oil Company.