South African oil and gas industry can contribute from one billion dollar to $1.5 Billion to the country’s GDP and can create around 50000 more jobs in the country.
According to present Chief Director of the Department Trade and Industry, Nigel Gwynne-Evans, the South African offshore oil and gas industry can contribute from one billion dollar to $1.5 Billion to the country’s, as reported by iAfrica
Nigel Gwynne-Evans also disclosed that the current industry’s share in the South African GDP is half billion dollars (R3.6 Billion). Moreover, the present employee strength of the industry is 5700 with multiplying effect of eight it will create around 50000 more jobs. As per the forecast for 2014, industry will create from 12000 to 20000 jobs.
The main reason for high growth in the South African oil and gas industry is support from the department of trade and industry. It is supporting industry at national level through specific economic policies at regional level and through a priority task team.
Another reason for high growth in the South African oil and gas market is increasing fuel demand within country and outside. Besides, the export of oil and gas from South Africa is rising which in turn taking industry to its peak. The highest demand for oil and gas is coming from fast developing Asian countries. These industries are witnessing huge growth in industrial and automobile sectors, which are main consumers of oil and gas. Including this, South Africa provides fuel at lower cost as compared to other countries and the Asian countries import fuel from South Africa.
In addition to this, technological advancements have facilitated oil and gas companies to run offshore platforms and produce fuel from deep water around the coastal line of South Africa. A new shipyard is also opened in South Africa that will help in building a platform for the production of oil and gas in the country. It is also creating opportunity for the South African economy to contribute to the oil boom in the West African region.
According to a research analyst at RNCOS, “As the demand for oil and gas is increasing worldwide, the production of oil and gas by South Africa is increasing. Additionally, South Africa provides fuel at low price rates in comparison to other countries which in turn boosting growth in the industry. Indirectly, South Africa is also increasing the popularity of oil and gas at the international level.”
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