Home Fossil Energy Interview: Africa’s oil & gas, renewables, and low-carbon plays set to flourish in the embrace of digitalization
While Africa is undoubtedly bound to see further growth in oil and gas production, with low-carbon and clean energy sources also on the continent’s menu, one of the key tools of this golden opportunity to boost economic growth lies in the rollout of digital technologies to push production to all-time high levels and enhance the set of offerings to navigate and tackle safety, climate, costs, and regulatory complexities. Will Africa pick up a match to set the blazing bonfire of digital transformation alight, going after low-hanging fruits and the biggest impact items in digitalization’s arsenal?
Coral-Sul FLNG (for illustration purposes); Source: Eni
The worsening climate crisis alongside global population growth, ever-growing spikes in energy demand, supply concerns, geopolitical challenges, and cost inflation are combining forces to shape an era of further innovation in multiple arenas, including technology, to respond to these challenges, giving rise to digital evolution in the worldwide offshore energy industry.
In line with this, Africa’s energy ambitions are gaining ground with significant potential for further growth in the continent’s energy market, which can be unlocked with digital tools.
Rich nations and fossil fuel profiteers must contribute their fair share to clean and equitable energy solutions🫰. Taxing the rich would help fund #JustEnergyTransitions in Africa. Although Africa contributes just 4% of global CO2 emissions, it will suffer the most from… pic.twitter.com/2yD6azOvS0
— Center for Citizens Conserving Environment( CECIC) (@cecic_ug) July 22, 2024
Such endeavors will not only strengthen the energy security across the mother of mankind, as the continent is often called but also position it to become an important player in the global energy arena, spearheading the transition to greener fuels while also promoting further evolution in technology to streamline operations with digitalization at the forefront of such efforts.
This, in turn, will enable untapped energy resources across Africa to spring free, bringing a game-changing opportunity to enhance the economy and energy infrastructure safety, ramp up production flows, and curb the environmental impacts of the continent’s energy boom.
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Posted: about 1 year ago
According to Mordor Intelligence, the Middle East and North Africa (MENA) digital oilfield services market is anticipated to hit around $31.69 billion by year-end, growing to $41.73 billion with the compound annual growth rate (CAGR) surpassing 5.66% during 2024 – 2029. The forecasts show that bringing smaller offshore gas fields in the Mediterranean and the Red Sea online will continue offering a source of growth for the market.
While the boost in upstream production capacity is underway on the world’s energy stage to reap the benefits of the current high-price environment and maximize profits, the jump in renewable energy adoption across the globe is anticipated to curtail the demand for hydrocarbons in the MENA region, restraining the market during the forecast period,