KEY POINTS
- South Africa’s Mineral and Petroleum Resources Minister Gwede Mantashe reaffirmed the government’s commitment to oil and gas exploration and development.
- Mantashe emphasized the potential of oil and gas to boost South Africa’s energy security and economic growth, despite environmental concerns.
- The government is focused on balancing energy transition efforts with the development of the oil and gas sector to meet the country’s growing energy needs.
South Africa’s Mineral Resources and Energy Minister Gwede Mantashe has recently reiterated the government’s commitment to the growth of the nation’s oil and gas industry. In his speech at the recent industry event, Mantashe emphasized the role of oil and gas in increasing energy security, employment, and economic development in South Africa while facing increasing pressure to speed up the transition to renewables.
Mantashe noted the concerns raised by environmental groups on the effects of fossil fuels but defended the need for oil and gas in the country’s energy mix. He explained the country’s need to expand the sources of energy and meet the increasing demand while at the same time ensuring adequate supply for industrial and economic uses.
Managing the oil and gas industry with the energy transition objectives
While South Africa is in the process of moving towards lower carbon emissions and the use of renewable energy, Mantashe was very clear that the exploration and production of oil and gas will remain a key part of the country’s energy mix.
He emphasized that the transition to clean energy cannot be at the cost of economic growth in South Africa, particularly at a time when the country is experiencing load shedding and electricity outages.
As reported by Engineering News, the government’s strategy is to achieve a diversified portfolio of oil, gas and renewable energy. Mantashe noted that although renewable energy is on the rise, the country cannot rely on it fully because of issues to do with storage and the fact that it is an intermittent source of energy. He again stressed that oil and gas could guarantee the stability of energy supply and serve as a transition to cleaner energy.
Oil and gas: a driver for economic growth
Mantashe’s comments are made at a time when South Africa is on the lookout for means of increasing its economy and employment opportunities. The exploration, production and downstream activities of the oil and gas sector are considered as one of the most promising areas for economic development.
Mantashe also stressed that the exploration and production of the domestic oil and gas resources could help to decrease the dependence on imported energy sources, increase energy self-sufficiency and promote industrialization.
Also, growth of this sector may create thousands of employment opportunities especially in the exploration of oil and gas, refining and infrastructure. Mantashe also pointed out that cooperation with private investors and foreign companies would be crucial in the development of the South African oil and gas industry.
Conflict and environmental issues
As the South African government continues to advance its oil and gas exploration and production, the sector has been met with opposition from environmentalists who believe that the fossil fuel projects will be catastrophic to the environment especially the marine environment. Some of the concerns have been made in relation to protests against offshore exploration especially in the sensitive environment.
To these concerns, Mantashe said that the government is still keen on sustainable development and that any oil and gas projects will be in accordance with the law. But he argued that the development of South Africa requires a consideration of the environment and stated that the exploration of oil and gas can be done in an environmental friendly way.
South Africa’s energy outlook
With South Africa still struggling to address its energy issues, Mantashe’s statement of support for oil and gas shows that the government is keen on a diversified energy portfolio. Given the current power deficit in the country, the emphasis on the oil and gas sector will continue to be a major feature of South Africa’s energy mix as the country ramps up the generation of renewable energy.
The government strategy will define the pace at which South Africa can transform to a more sustainable energy system and at the same time ensure energy security and economic growth.
