Mr Haitham Al Ghais, Secretary General of the Organization of Petroleum Exporting Countries (OPEC), has stated that the coalition will assist Africa in achieving its energy transition plan despite market uncertainties.
During his speech at the African Energy Week in South Africa, the Secretary-General emphasized OPEC’s global outlook, the key challenges confronting global oil markets, and Africa’s critical role in the organization.
He also provided important insight into the organization’s strategies for driving stability across Africa, as well as the role of the recent Declaration of Cooperation in improving stability.
“With the real potential of a global recession, there was a consensus among the Ministers. I would like to thank the African heads of delegations for their ongoing support to provide lasting stability in global oil markets,” he said.
Touching on the state of play of the global oil outlook and the organisation’s outlook, he stated, “Our actions in the short term most certainly have an impact on the longer term.
“On October 21, we will be launching the next edition of the OPEC World Outlook. This flagship publication provides a detailed overview of the long-term forecasts for global energy markets.
“Energy demand will continue to rise dramatically. Despite a minor decline, oil will still share the largest share of the energy mix by 2025. The combined share for oil and gas is expected to remain above 50 per cent by 2025.”
He explained that climate change would continue to significantly impact global economies in addition to market challenges.
“OPEC supports SDG 7, which seeks to increase access to affordable, reliable and sustainable energy for all. Energy, like education and healthcare, should not be considered a luxury but a basic human right. The overarching issue of climate change and energy transition will have massive implications for Africa.
“Countries worldwide continue to adapt to the industry’s rapidly changing dynamics. In this context, Africa is in a very fragile position. African countries stand to be on the losing end of the consequences of climate change. OPEC will continue to advocate for Africa.”
Mr Al Ghais noted that Africa has a key role in OPEC, highlighting that “With seven members, Africa makes up more than half of OPEC’s overall membership. This increasing presence led to establishing of the first-ever high-level OPEC-Africa energy dialogue. Through this dialogue, we look forward to enhancing our focus on this continent and its energy future.
“Africa’s energy future is bright, and the opportunities are vast. As of 2021, Africa’s proven oil reserves amounted to over 120 billion barrels. There are increased opportunities for enhanced intra-African trade. Despite the many challenges that lay ahead, we will continue to see Africa’s energy sector thrive and develop for years to come.”
