R/€ = 14.21
R/$ = 11.26
Au 1214.64 $/oz
Pt 1283.00 $/oz
Oct 09, 2008
Minister calls for a more stable, transparent oil priceBack
SECURITY|Africa|PetroSA|Security|System|Systems|Africa|South Africa|Security|Energy|Logistics|Oil|Oil And Gas|Oil Price|Products|Proper Energy|Security|Stable Oil Price|Systems|Transparent Oil Pricing System|Nompumelelo Siswana|Security|Energy Technologies
© Reuse this
Speaking at the Oil Summit in Midrand, the minister noted that the volatility of the oil price impeded planning and budgeting, which were "critical ingredients" of a stable economy.
She added that high oil prices earlier this year had highlighted the importance of oil in the modern economy.
Sonjica emphasised that the recent drop in the oil price should not "give us false hope" and should allow the country to "fall victim" to future price escalations.
National oil and gas company PetroSA trading, supply and logistics vicepresident Dr Nompumelelo Siswana said it was difficult to predict future oil prices, but that the price of oil and petroleum products were forecast to continue rising until 2020.
With demand for oil set to grow, and with the price expected to continue increasing, technology innovation would be an "important tool" to ensure greater energy security, climate protection and economic growth, Sonjica suggested.
"It may be important that, as a country, we seriously explore energy technologies that can provide for the gradual transition towards energy systems for the longer term," she said.
The minister emphasises that the development of these technologies would require strengthened public-private partnerships.
Sonjica added that the high oil price earlier this year could not be attributed merely to the "mismatch between supply and demand", noting that speculative activity had largely contributed to the problem.
Sonjica said the country had to gain a better understanding of market speculation, but also had to deal with the "fundamental issues" of rising demand, low investment in the supply of oil, and the depletion of oil reserves.
The minister also stressed the importance of reaching bilateral agreements with regard to energy, such as that signed between South Africa and Venezuela earlier this year, as part of a mitigating strategy against the high oil price.
She noted that such "mutual relations" would advance global growth.
Edited by: Irma Venter© Reuse this Comment Guidelines (150 word limit)
Other Video News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu. Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.