- Short-term outlook for African oil & gas remains marked by Covid-19 and uncertain market conditions expected to result in a $30bn cut in Capex spending (2020-2021).
- South Western Africa expected to emerge as the next energy frontier on the continent on the back of high-impact wells coming up in 2021 and 2022.
- The continent’s production of oil & gas is expected to increase in 2021 as OPEC’s sanctions ease and on the back of increase oil output from Libya and increased gas production from Algeria and Egypt.
The African Energy Chamber has released African Energy Outlook 2021. The report explores the forces shaping up continent’s energy market after the historic shocks of 2020, and analyses the upcoming recovery on the back of the global energy transition and persisting market uncertainties. After a year of historic crisis, the Outlook offers guidance and solutions for African energy stakeholders to navigate troubled waters and support a strong recovery in 2021 and beyond.
The pandemic notably came at a particularly difficult moment in Africa, exacerbating already challenging market conditions on the back of a competitive American shale industry, the delaying of major projects due to regulatory uncertainty, and increasing global attention to decarbonisation. The African Energy Chamber notably expects a CAPEX spending cut of $30bn over the 2020-2021 period, and has identified a further $80bn of investment whose sanctioning will depend on improving market conditions, along with bold policy and fiscal reforms from African regulators.
The report provides detailed information in areas of critical importance, and includes sections examining jobs and employment, cash-flow and profit forecasts, the expenditure and investment outlook, carbon emissions, oil and gas market projections, and regional production outlook. Pressing issues including notably the OPEC’s production cuts, ongoing regulatory reforms, the impact of the COVID-19 by region and country, and offshore drilling demand across multiple continental shelves are analysed in detail.
Link to full report HERE
Author: Bryan Groenendaal
