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Africa's oil and gas industry is facing extraordinary
circumstances. An ongoing energy transition and new efforts to
decarbonize the world are weighing on oil demand. The shale
revolution is exacerbating these pressures. And of course, the
COVID-19 pandemic has wrought havoc on markets around the world,
accelerating and intensifying existing trends. External headwinds
are forcing African petroleum producers to re-examine their
strategies. Conventional petroleum resources here should be
globally competitive, but growth has lagged because of conditions
above the ground, not below. Restrictive fiscal regimes,
inefficient and carbon-intensive production, and difficulties in
doing business are preventing the industry from reaching its full
potential. As companies delay projects and cut costs, planned
capital expenditure in 2020-2021 has fallen from $90 billion
pre-COVID-19, to $60 billion now. To remain competitive, African
producers and governments must adapt. But how can they do it when
the economic order is being remade? The Road to Recovery addresses
these challenges head-on, detailing all of the major challenges
facing African oil and gas stakeholders, as well as workable
solutions that will keep the industry on a strong and stable growth
path. Again and again, our oil and gas sector has proven its
resilience and adaptability. The world still needs oil and gas, and
Africa still holds enormous untapped potential. The African Energy
Chamber will remain a committed partner of choice for the industry
as we advance into an uncertain future.
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