As efforts to stabilize global oil markets intensify, a dedicated OPEC-Africa roundtable during African Energy Week 2023 will explore the supply-demand nexus, and how African producers are set to play a much larger role in stabilizing global markets.
In 2023, fluctuations in global oil markets have presented newfound challenges for countries worldwide, drawing attention to the rising role African crude oil plays in global supply chains. For years, major oil producers across the continent such as Angola, Libya and Nigeria have relied on groups such as the Organization of the Petroleum Exporting Countries (OPEC) to navigate the shifting global market. Now, as more countries join the list of African petroleum producers, the role African crude plays is expected to strengthen even further.
During this year’s edition of the premier event for Africa’s energy sector, African Energy Week (AEW) – taking place on 16-20 October in Cape Town – a dedicated OPEC-Africa roundtable will explore how African crude will serve as a catalyst for global energy security. Led by OPEC President and Equatorial Guinea Minister of Mines and Hydrocarbons Antonio Oburu Ondo, the roundtable features high-level representatives from OPEC alongside African leaders and industry experts, laying the foundation for further collaboration between OPEC and Africa.
Participating Ministers from OPEC include Angola’s Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo; Libya’s Minister of Oil and Gas, Mohamed Aoun; Algeria’s Minister of Energy and Mines, Mohamed Arkab; and Congo’s Minister of Hydrocarbons, Bruno Jean-Richard Itoua. Additionally, under the Declaration of Cooperation – a framework agreement signed between OPEC member countries and 10 non-OPEC oil-producing nations in 2016 – South Sudan’s Minister of Petroleum, Puot Kang Chol and Egypt’s Minister of Petroleum and Mineral Resources, Tarek El-Molla will also participate in the roundtable.
Representing a group of 13 oil-rich countries including seven African countries that are responsible for nearly 40% of global oil supply, OPEC plays an integral role in advancing market stability by coordinating with both producers and consumers. Post-COVID-19 impacts, geopolitical tensions and threats of a looming global recession have made the global oil market increasingly volatile in 2023, presenting a unique pool of challenges that both current and upcoming producers are required to navigate. In this scenario, OPEC has positioned itself as a reliable partner for Africa, uniting producers with their global counterparts and supporting nations in their quest for energy security.
On the trade front, OPEC’s production quotas, price stabilization mechanisms and research and analysis have supported market stability worldwide. The group constantly monitors the global market, coordinating with member nations to protect oil prices and revenue generation while balancing supply and demand. This in turn has advanced energy security on a global basis while enabling the African oil industry to expand.
On the upstream side, OPEC’s inclusive cooperation and coordination has better equipped countries in their pursuit of enhanced production and security. The organization facilitates technology and skills transfer as well as collaboration among its member countries, a trend which Africa continues to leverage as the continent’s oil industry expands. In the current energy transition landscape, OPEC’s experience and know-how regarding the sustainable development of oil resources has been key, and is supporting countries in their efforts to advance a just and inclusive transition. The organization coordinates dialogue between global actors regarding climate change, spearheading decarbonization efforts while making a strong case for energy security.
As Africa amplifies efforts to enhance the development and monetization of oil resources for energy poverty eradication and industrialization, OPEC’s market influence and experience regarding policy, investment and coordination will be a game changer for both current members and emerging African energy markets. Crude oil is expected to be play a central role in Africa’s development in both the near- and long-term. With over 125 billion barrels of proven reserves, the continent is well-positioned to initiate long-term and sustainable economic growth, improving energy access and industrialization while equipping nations with the finance and technology to drive a just energy transition. For major oil producers such as Angola, Libya and Nigeria, as well as upcoming oil exporters such as Namibia, Senegal and Mauritania, navigating the shifting global market will be made that much more productive through organizations such as OPEC.
As such, the OPEC-Africa roundtable at AEW 2023 will tackle challenges faced by producers, with industry experts and OPEC representatives providing insight into what’s next for the African oil industry. The strategic session will explore Africa’s energy development needs, current market conditions and future expectations, covering key topics such as the role the continent plays in global supply chains.
AEW is the AEC’s annual energy event which unites African policymakers and governments with global investors and project developers. The 2023 edition takes place from October 16-20 at the V&A Waterfront in Cape Town. For more information, visit www.aecweek.com.
