What does the future hold for Africa’s oil and gas sector?
The African Energy Chamber is delighted to announce the official release of its 2021 African Energy Outlook.
Johannesburg, November 10th, 2020: It has been a year like no other for African oil and gas. The COVID-19 pandemic shattered domestic and external energy markets, prices tumbled, and the industry experienced an unprecedented downturn.
Prior to the pandemic, capital expenditure in African oil and gas was set to hit $90 billion in 2020/21. As companies race to cut costs and major projects are delayed, that number has fallen to $60 billion. The industry was already grappling with strict fiscal regimes, chronic regulatory challenges, competition from the shale industry, and a global transition to greener production practices. The global pandemic came at a particularly difficult moment.
But hope is on the horizon.
In its second annual Africa Energy Outlook report, the African Energy Chamber offers a look into what the future holds for oil and gas development across the continent. Building on the success of last year’s inaugural edition, the 2021 Africa Energy Outlook is a must-read for any oil and gas stakeholder active in Africa. It is the most comprehensive report available on the future of African oil and gas, in 2021 and beyond.
“Oil and gas activities have undoubtedly taken a hit in 2020, but the outlook for African projects, fiscal regimes, and investment remains optimistic. Africa’s energy potential is enormous, and remains largely untapped. The world still needs oil and gas. As we look to the global recovery, we see significant opportunities for new development, which are detailed in-depth in our 2021 outlook,” said NJ Ayuk, Executive Chairman of the African Energy Chamber.
The African Energy Chamber, alongside a team of expert analysts compiled the most intensive and in-depth information covering all aspects of Africa’s energy sector. The report identifies challenges weighing on the industry even before the pandemic struck, and more importantly, offers workable solutions that could steer it back on track. Regulatory reforms, reduced gas flaring, and more favourable fiscal regimes are among its key recommendations.
“When we began work on this year’s report, we were determined to expand and improve in line with our mission to support and promote African energy industry players at the local, regional, and global levels. The advent of COVID-19 brought on challenges none of us had foreseen, making the 2021 outlook an invaluable resource for existing players and potential investors,” said Mickael Vogel, Director of Strategy, African Energy Chamber.
The report provides detailed information in areas of critical importance, and includes chapters examining jobs and employment, cashflow and profit forecasts, the expenditure and investment outlook, carbon emissions, oil and gas market projections, and regional production. Pressing issues including OPEC production cuts, regulatory reforms, COVID-19 impacts by region and country, and offshore drilling demand across multiple continental shelves are analyzed in detail.
“The Africa Energy Outlook 2021 gives readers an unrivalled opportunity to gain valuable insight into one of the world’s most high-potential oil and gas ecosystems, reinforcing the African Energy Chamber’s role as the voice of Africa’s energy industry,” said Mandisa Nduli, Director of Communications and Marketing at the African Energy Chamber.