EnerGeo Alliance published a report analysing the prospective economic benefits and opportunities that would stem from a robust expansion of offshore oil and gas exploration and production in South Africa.
South Africa is currently experiencing a prolonged period of economic stagnation, characterised by slow GDP growth, declining investment, a contracting productive base due to de-industrialisation, and persistently high unemployment. This context underscores the urgent need for new economic drivers.
The domestic oil and gas industry in South Africa presents a transformative opportunity to strengthen energy security, stimulate industrial development, create high-quality jobs, and generate significant fiscal revenue.
Nikki Martin, President & CEO of EnerGeo Alliance, highlights how “the findings of this economic study underscore the critical importance of regulatory and legislative efficiencies in enabling nations to fully harness their energy potential. Such reforms are fundamental to advancing economic development, enhancing quality of life, and expanding equitable access to reliable energy resources.”
Dr. Ross Compton, Senior Director of Global Policy at EnerGeo Alliance, said: “Our members bring decades of responsible operational excellence to South Africa. As the voice of geoscience companies, innovators, and energy developers that harness science to power our world, we are committed to partnering with the government and local communities to build a secure, reliable energy with lower emissions future for South Africa.”
The new economic impact report highlights that:
- Developing a domestic upstream industry will significantly reduce South Africa’s reliance on volatile foreign fuel supplies;
- The upstream oil and gas sector is expected to foster extensive industrial linkages, stimulating growth in manufacturing, heavy construction, transportation, and specialised services; and
- The Block 11B/12B project has the potential to create over 20,000 direct, indirect, and induced jobs, and boost South Africa’s annual GDP by almost R23 billion.
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