The geopolitical tremors of the past month are a sobering reminder of the fragility of global interconnectedness.
As conflict escalates in the Middle East, the immediate spikes in crude oil and the subsequent anxiety in global supply chains have sent an unyielding message: energy security is national security.
For South Africa, the choice is no longer between different ideological energy paths, it is a necessity to secure the economy.
Where there are threats to global supply chains thousands of kilometres away, South African businesses and consumers pay the “uncertainty tax” at the pump. To break this cycle South Africa must pursue national and regional energy independence with a sense of urgency that matches the scale of the global shift.
This imperative was palpable on the ground in Cape Town at the recent Southern Africa Oil and Gas Conference. The event served as a forum, bringing together the oil and gas industry, community groups, policymakers and representatives from environmental NGOs. As industry associations, EnerGeo Alliance and the South African Oil & Gas Association (Saoga) observed an alignment at the conference: a shared recognition that our current vulnerability to global volatility is unsustainable.
The case for domestic exploration
Developing a domestic oil and gas sector is one of the potential safeguards against the geopolitical shocks that dictate South African inflation rates. By unlocking local offshore and onshore resources, South Africa does more than fuel the economy. It creates a strategic buffer. A localised energy value chain ensures the industrial and transportation sectors are powered by a predictable, indigenous supply, largely shielded from the volatility of foreign conflicts.
The introduction of the Gas Bill into the National Assembly is a defining milestone. By intending to create an enabling licensing framework and a comprehensive Gas Master Plan, the government is creating the certainty that our members have long requested
Saoga and EnerGeo advocate for a localised energy value chain that ensures our industrial and transportation sectors are powered by a predictable, indigenous supply. Such a move will help shield our economy from the volatility of foreign conflicts while providing the flexible power needed to stabilise the grid. A predictable and secure supply of energy doesn’t only fuel industry and transportation; it provides the foundation to power economic activity and growth, contributing significantly to government revenues and stimulating much-needed job creation.
New era of regulatory alignment
Fortunately the “wait-and-see” era of South African energy policy appears to be ending. We are witnessing a high level of synchronisation across government departments that signals a pragmatic shift toward investment readiness.
The introduction of the Gas Bill into the National Assembly is a defining milestone. By intending to create an enabling licensing framework and a comprehensive Gas Master Plan, the government is creating the certainty that our members have long requested.
Following an extensive and successful period of industry consultation, the department of mineral & petroleum resources is finalising the Upstream Petroleum Resources Development Regulations. These regulations will operationalise landmark legislation dedicated to creating nuance and clarity for the regulation of upstream petroleum in South Africa. The Gas Bill and these regulations are the bedrock on which long-term capital commitments are built.
Equally encouraging is the newfound collaboration between the departments of forestry, fisheries & the environment and mineral & petroleum resources. The joint effort to reform the environmental impact assessment (EIA) process is a vital recognition that environmental stewardship and industrial progress are not mutually exclusive. With public consultations on these reforms closing on April 30, we have a critical window to ensure regulatory standards are rigorous but do not hinder economic growth.
Support from government
Policy is only as effective as its implementation. In this regard, the stance taken by forestry, fisheries & the environment minister Willie Aucamp is welcomed by the industry. His explicit commitment to ensuring environmental appeals are considered swiftly, and not used as a tool for indefinite obstruction, demonstrates a genuine understanding of the cost of delay.
By promising to clear administrative bottlenecks, the department is signalling South Africa is reclaiming its status as a competitive destination for global energy capital. This leadership is essential to reassure investors the goalposts will not move mid-project.
The events of the past month have made it clear we don’t have the luxury to wait and see. The country can remain vulnerable to the next global shock, or it can accelerate the legislative and regulatory work already underway to help secure its future.
By supporting the Gas Bill and the EIA reforms, we aren’t only supporting responsible energy development; we are investing in the sovereign right of South Africans to power their own progress. Representing members across the oil and gas sector, our associations are encouraged by government’s proactive stance and the pressing drive for progress felt by our communities and stakeholders.
The wind of geopolitical pressure is at our backs; it is time to set the sails.
• Van Liew is SVP global policy at the EnerGeo Alliance and Strydom CEO of the Saoga.
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