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Oil prices are up 70 percent over the last 12 months, with US$100 a barrel now within reach. That opens opportunities for African oil and gas producers to fast-track projects that were shelved just two years ago when the Covid-19 economic crash plunged prices to just above US$20 per barrel (bbl).
Two years later, African oil and gas producers are dusting off stalled projects and ramping up exploration. There seems little doubt that prices of around US$100/bbl won’t last.
But a sustainable price of about US$60/bbl seems a reasonable bet, in which case billions of dollars of exploration funding could soon find its way to prospects that were deemed non-viable just a few years ago.
A sustainable oil price above US$57/bbl is a game changer for Africa, says NJ Ayuk, chair of the African Energy Chamber.
“High oil prices of around $100/bbl are not sustainable. At prices like this, new supply is going to flood the market and that will push prices down again. Volatile prices are good for no-one. — Moneyweb.
Online Reporter