DTN urges African energy markets to meet social and economic responsibility challenges

Engr. Dozie Obi (MNSE,COREN,ChPMC), Managing Director, DTN Integrated Services, wrotes: One indispensable input for economic growth and social development is energy. And two-thirds of required global energy is met with oil and gas supply. If this is used strategically, Africa’s Oil and gas resources can help accelerate growth on the continent.

Oil, natural gas and coal are three non-renewal energies that constitute about 90 per cent of commercial energies consumed globally. Africa is said to have about 15 percent of the world’s population, yet it consumes only 3 percent of global commercial energy.

On the contrary, Africa shares 12 percent of global commercial energy, and this is rising Oil-and gas-producing countries in Africa get an inadequate share of large rent from oil and gas production, which is a result of contracts and regimes designed to extract poor rents from the Oil market. One major challenge faced by oil-producing countries in Africa is attaining and maintaining a sufficient, reliable and environmentally responsibility supply of Oil at prices that reflect market basics. In our view, contracts should reflect state interest and support sustainable extraction and principles, which is a responsibility of government.

Additionally, social responsibilities of oil and gas companies should do well expressed in contracts in order to ensure communities benefit.

Furthermore, it is of great importance that local companies become more heavily involved in contracts and investing back into the economy.

In conclusion, enlightenment on the role of oil and gas energy in the continent’s development should be used as a tool to encourage local companies and individuals to invest in the sector, which will expand the sector, create job opportunities, and help in social growth and development globally.