CAPE TOWN, South Africa — The secretary general of APPO, the African Petroleum Producers Organization, has come out in support of OPEC’s recent decision to cut output by about 2%, on the sidelines of Africa Oil Week in Cape Town.
“It’s a decision well made,” said APPO Secretary General Dr. Omar Farouk Ibrahim. “I think it’s the right thing to do to save the industry and also to provide stability for today and tomorrow.”
The decision by OPEC, which includes major oil producers Russia and Saudi Arabia, as well as African countries and APPO members Nigeria, Algeria, Angola, Congo and Libya, saw the price of Brent crude oil rise 1.5% to over $93 a barrel.
“Every country has a responsibility to protect the interests of its citizens and if by cutting production they consider it to be in their best interests, so be it. When developed countries make decisions, they don’t sit and reflect [about] how this will affect developing countries. The interests of their citizens are paramount.
The OPEC (Organization of Petroleum Producing Countries) decision came after the 33rd OPEC and non-OPEC ministerial meeting on Wednesday. In a statement, the organization said it would “reduce overall production by 2mb/d, starting in November 2022”.
He said the adjustment was being made “in light of the uncertainty surrounding the global economy and oil market outlook, and the need to improve long-term guidance for the oil market.”
The move comes against the backdrop of a global economic slowdown, war in Ukraine and the recent G7 cap on the price of Russian oil exports, part of a new round of sanctions against Moscow.
Dr Ibrahim’s comments reflect a growing assertion among African oil producers that the region has the right to chart its own energy course.
Africa Oil Week, taking place in Cape Town this week, saw the continent speak with one voice on the defining energy challenge of our times: that Africa will determine how best to balance its own development with durability.
Keynote speakers, government officials, analysts, industry leaders and panelists all said the challenges of energy poverty are just as dangerous as the risks of climate change. In this context, Africa is best equipped to determine how it can meet its climate commitments while giving its people access to the energy needed to provide a better future for its people.
“We must all remember that more than half of the population of our continent does not have access to modern energy, especially electricity,” said HE Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy of the African Union Commission, official partners of Africa Oil Week. “Africa’s low levels of access to modern energy mean that Africa will have to use all forms of its abundant energy resources to meet its energy needs.
Abou-Zaid said the AU was guided by Africa’s Agenda 2063, a development plan that calls for universal access to affordable and reliable energy for production and domestic use in Africa.
The AU recently adopted the African Common Position on Energy Access and Just Transition, which charts Africa’s development pathways to accelerate universal energy access and transition without compromising its imperatives. of development.
Rashid Ali Abdallah, executive director of the AU’s African Energy Commission (AFREC), said Africa’s energy transition is about moving the continent from “no power to , to close the energy access gap”.
“Decarbonization or the goal of reaching zero emissions by 2050 is not suited to the African context,” he said. “It may be suitable for other parts of the world. For this reason, as Africa, we need to push development and exploration in the oil and gas market.
The AU estimates that more than 600 million Africans live without electricity, while 900 million lack access to clean cooking facilities. The African common position encourages finding a balance between ensuring access to electricity for socio-economic growth and the smooth transition to an energy system based on renewable energy sources.
Paul Sinclair, Vice President of Energy and Director of Government Relations, Africa Oil Week and Green Energy Africa, said, “We are delighted to have partnered with the AU this week to ensure we drive regional markets oil and gas in an Afrocentric energy transition”.