The secretary general of APPO, the African Organization of Petroleum Producers, has spoken in favor of OPEC‘s recent decision to cut production by around 2%, on the sidelines of the African Oil Week (www.Africa -OilWeek.com) in Cape Town. “It’s a well-taken decision,” APPO Secretary General Dr. Omar Farouk Ibrahim said on the sidelines of the African Oil Week being held here.
“I think it’s the right thing to do to save the industry and also to ensure that there is stability for today and tomorrow.”
The decision by OPEC, which includes major oil producers Russia and Saudi Arabia, as well as African countries and APPO members Nigeria, Algeria, Angola, Congo and Libya, caused the price of Brent crude to rise by 1 .5% to more than $93 per year.
“Each country has a responsibility to protect the interests of its citizens and if, by reducing production, they consider it to be in their best interests, so be it.
When developed countries make decisions, they don’t sit back and think [about] How will it affect developing countries?
The interest of its citizens is paramount.” The OPEC (Organization of Petroleum Producing Countries) decision was made after the 33rd OPEC and non-OPEC ministerial meeting on October 5.
In a statement, the organization said it “would reduce total production by 2 mb/d, starting in November 2022.
It said the adjustment was being made “in light of the uncertainty surrounding the global economy and the outlook for the oil market, and the need to improve the long-term orientation for the oil market”.
The move comes against the backdrop of a global economic downturn, the war in Ukraine and the recent G7 cap on the price of Russian oil exports, as part of a new sanctions package against Moscow.
Dr. Ibrahim’s comments reflect a growing assertion among African oil producers that the region has a right to chart its own energy course.
Africa Oil Week, held here this week, has seen the continent speak with one voice on the defining energy challenge of our time: that Africa will determine how best to balance its own development with sustainability.
Keynote speakers, government representatives, analysts, industry leaders and panelists have said that the difficulties of energy poverty are as dangerous as the risks of climate change.
In this context, Africa is better equipped to determine how it can meet its climate commitments while providing its people with access to the energy needed to provide a better future for its people.
“We all need to remember that more than half of the population on our continent does not have access to modern energy, specifically electricity,” said Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the African Union Commission.
, official partners of the African Oil Week. “Africa’s low levels of access to modern energy mean that Africa will have to use all forms of its abundant energy resources to meet its energy needs.”
Abou-Zaid said the AU was guided by the Africa 2063 Agenda, a development plan that calls for universal access to affordable and reliable energy for both production and domestic use in Africa.
The AU recently adopted the African Common Position on Energy Access and Just Transition, which outlines Africa’s development pathways to accelerate universal energy access and transition without compromising its development imperatives.
Rashid Ali Abdallah, executive director of the AU Africa Energy Commission (AFREC) said Africa’s energy transition was about the continent moving from “no energy to energy, to fill the energy access gap” .
“Decarbonization or the goal of reaching zero emissions by 2050 is not appropriate for the African context,” he said.
“Perhaps it is suitable for other regions of the world.
For that reason, as Africa, we must promote development and exploration in the oil and gas market.” The AU estimates that more than 600 million (https://bit.ly/3SL9VIY) Africans live without electricity, while 900 million lack access to clean cooking facilities.
The African Common Position encourages striking a balance between ensuring access to electricity for socio-economic growth and the smooth transition to an energy system based on renewable energy sources.
Paul Sinclair, Vice President for Energy and Director of Government Relations, Africa Oil Week and Green Energy Africa said: “We are delighted to have partnered with the AU this week to ensure we boost regional oil and gas markets in an Afrocentric energy transition.