By Precious John
Africa Oil Week has launched two complimentary reports, produced in association with Wood Mackenzie that both assess the impact of the latest supply and demand crisis in oil and gas markets, one with a global and the other with an African focus.
Posing the question “what’s next?”, the reports look at what has changed in the upstream and offer future projections, covering areas including:
- Development capex
- Production (liquids and gas)
- Valuations
- Returns on pre-production projects
- Cash flow
Read side by side, the reports offer a unique opportunity to assess Africa’s position in the global hydrocarbons landscape. It’s no secret that the continent has been hit hard by the current crisis, with sweeping cuts and deferrals – particularly in high cost deepwater projects in the west and LNG projects in the east. Nevertheless, with a growing, energy-hungry population, Africa appears to be resilient, with upstream capital expenditure forecast to exceed 2019 levels by 2022.