What does the future hold for South Africa’s oil and gas market?

South Africa has one of the largest economies in Africa based on the gross domestic product (GDP), and the country’s oil and gas market is a massive contributor to the economy. The country’s oil and gas upstream sectors are mostly dominated by the wholly state-owned Petroleum Oil and Gas Corporation of South Africa, while the downstream sectors are made up of a mix of organizations, such as BP, Total and Chevron. Over the past year, the oil and gas market has faced a range of challenges and uncertainty, but some key developments are driving the sector forward that could even pave the way for more oil and gas job roles. So what does the future look like for the oil and gas market?

A new era for oil and gas

It’s no secret that South Africa is heavily reliant on coal for its energy production, but there’s now a greater demand for different energy sources. While the future of the industry is highly uncertain, South Africa’s oil and gas sector is set to undergo massive changes over the next few years. For example, a new Gas Master Plan is in development with objectives that include boosting the natural gas fuel share and doubling liquified petroleum gas (LPG) consumption. Both LNG and LPG have the potential to create more jobs in South Africa. While there’s already a wide range of oil and gas jobs in South Africa, such as offshore machinist and project engineering manager, the increase of natural gas fuels could lead further to job creation. Also, much has been said about hydrogen serving as the energy of the future. According to Power Engineering, hydrogen is set to be cost-competitive by 2030 and the government are expected to provide emergency funds to ensure hydrogen development, in the form of new gas turbines. Therefore, the future of oil and gas in South Africa could be defined by a mix of fuels that power the economy.

Role of oil and gas in the economy

When the Brulpadda and Luiperd gas condensate fields were discovered in 2019 and 2020, this marked a significant step forward in South Africa’s much-anticipated energy transformation. These discoveries raised the prospects of an increased level of gas in South Africa, which has long been dominated by coal production. But what do the nation’s gas discoveries mean for the future of the sector? The extra resources have the potential to increase production at existing fields, but the government will need action the initiatives and support the projects with investment. The oil and gas sector has a significant role to play in South Africa, particularly in the post-covid world where the economic future is still uncertain. However, oil levels in South Africa are expected to reach pre-pandemic levels by 2022. The nation’s refinery output reduced by 30% due to the pandemic, but the future now looks more positive as there are some clear signs of recovery.

How can TRS Staffing help your business?

TRS Staffing is a leading recruiter that specializes in hiring the best professionals for roles within the oil and gas sector, including mining jobs. We have years of experience in connecting businesses with the best talent all across South Africa. We’re able to recruit candidates at all levels of seniority and we have an expert understanding of the market. Our specialist recruiters have built great relationships with clients and candidates and we’ve provided a quality service ever since we first established in 1984. If you would like to know more about our services, contact our team today.