Low oil prices effect on energy in Africa

As we know of recent, the price of oil per barrel drastically dropped from over $100 to about less than $50 a couple of months ago. What does this mean? In developed countries like the United States, gas (petroleum) prices at gas stations are lower, which is at an advantage to the consumers. However it also signifies a shift in the oil and gas employment market. Unfortunately, thousands of employees in the industry have lost their positions, due to the fact that a number of the companies can no longer afford their workers as a result of the wide loss margin they are experiencing. So what does this mean for the oil rich countries in the African continent? There is an obvious shift in the local and international market place. Some countries have experienced a reduction in their trade orders. This can present serious financial issues in some African nations, especially those that lack a diversified energy economy and are oil and gas dependent.

Hopefully, this change and perturbation in the global energy market, can help spark conversations about diversifying local and national energy economies in the African continent. The investment and implementation of conventional and alternative energy projects catered specifically around regional environments of interest, are strongly needed for economic growth and stability in the African energy sector to avoid the negative effects provided by unpredictable changes in the global markets.