Cape town: The government is actively engaging with stakeholders in the petroleum sector to ensure fuel supply stability and security as global disruptions impact the market. This was highlighted by Mineral and Petroleum Resources Minister Gwede Mantashe during his keynote address at the 5th Southern Africa Oil and Gas Conference in Cape Town.
According to South African Government News Agency, Mantashe emphasized the ongoing challenges posed by the conflict in the Middle East, which has led to supply disruptions and a steep increase in fuel prices. The minister assured that the department is in constant dialogue with industry players to explore all possible supply sources, aiming to maintain uninterrupted fuel availability without immediately resorting to the country’s strategic reserves.
Mantashe noted that countries heavily reliant on oil imports are particularly vulnerable to global market shocks. He stressed the importance of domestic production as a sustainable long-term solution to these challenges, advocating for the exploration and responsible exploitation of South Africa’s petroleum resources. However, he acknowledged that legal challenges from environmental groups have hindered these efforts.
The minister pointed out that South Africa has significant offshore petroleum potential, including major gas discoveries in the Outeniqua Basin and potential oil reserves in the Orange Basin. Despite this, ongoing blockages against oil and gas development in the name of environmental protection have impeded progress.
Highlighting the socioeconomic impact of rising oil and gas prices, Mantashe argued that the lack of access to these resources exacerbates energy poverty, unemployment, and inequality. He asserted that South Africa must harness its natural resources responsibly to drive inclusive economic growth and alleviate poverty.
Mantashe further emphasized the need for legislative reforms to promote the petroleum sector’s contribution to the economy. He cited the enactment of the Upstream Petroleum Resources Development Act as a critical intervention, separating petroleum from mining legislation and establishing a regulatory framework to accelerate exploration and production.
The government is also advancing the modernization of the Petroleum Products Act, with the draft Petroleum Products Bill undergoing certification processes ahead of submission to Cabinet and Parliament. These reforms aim to ensure equitable access to and sustainable development of the nation’s petroleum resources, reducing reliance on imports.
Additionally, Mantashe mentioned ongoing engagements with the ministers of Environmental Affairs and Water and Sanitation to finalize regulations for shale gas development. The government stands ready to lift the moratorium on shale gas development once these regulations are in place, promoting fairness and regulatory certainty in the oil and gas sector.
The minister concluded by reaffirming the government’s commitment to responsible development of South Africa’s petroleum resources, emphasizing the need for the country to actively participate in the evolving global energy landscape and unlock the full potential of its petroleum sector.