R/€ = 13.05
R/$ = 11.97
Au 1195.27 $/oz
Pt 1136.50 $/oz
Oct 09, 2008
Minister calls for a more stable, transparent oil priceBack
Africa|Petroleum|SECURITY|System|Systems|Africa|Energy|Logistics|Oil And Gas|Products|Systems
© 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
Updated 11 minutes ago If your country were responsible for only 0.05% of the world's climate-changing emissions, you might not think it worth making a plan to curb that pollution – especially when you still need to get electricity to much of your population. But the Gambian government...
Updated 21 minutes ago The country's biggest local government budget of R52.6-billion was tabled on Tuesday by the City of Johannesburg’s member of the Mayoral Committee for Finance‚ Geoffrey Makhubo‚ with a focus on capital expenditure‚ housing and youth employment. Makhubo presented his...
Updated 56 minutes ago South African chemicals group AECI has entered into an agreement to acquire Southern Canned Products (SCP) for an undisclosed amount, complementing its Lake Foods division and its strategy to grow its Food Additives and Ingredients business in South Africa and,...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...