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.

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About the blog

This website is a commentary blog where I, the author share my personal, professional and academic opinion on topics relating to energy (conventional and alternative) development in the African continent and the rest of the globe. The purpose of this platform is to  create an awareness, educate, contribute and to hopefully inspire you, the reader on the subject of interest. The topics that will be mainly explored on this site include; the challenge of producing new energy resources and exploring practical solutions (big and small) to supply energy to a fast and exponentially growing continent without compromising food security, promoting environmental damage, introducing negative climate change, increasing health risks or impeding economic development. These will be expressed in the form of my analysis of a story or article from several different information sources.

Please, enjoy the read…