R/€ = 13.13
R/$ = 11.58
Au 1289.56 $/oz
Pt 1260.50 $/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 Oil and Gas News
Article contains comments
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...