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Stimulated Economic Growth Spurs the Demand for Oil and Gas in Southern Africa Finds Frost & Sullivan - The revival of the global economy, following the economic crisis in 2008 and 2009, has led to a rebound in the demand for minerals and natural resources from Southern Africa
Stimulated Economic Growth Spurs the Demand for Oil and Gas in Southern Africa Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2010/07/26 - The revival of the global economy, following the economic crisis in 2008 and 2009, has led to a rebound in the demand for minerals and natural resources from Southern Africa.

   
 
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This has stepped-up the demand for oil products within the region, driving growth in the Southern African downstream oil and gas market. Furthermore, the recovery of crude oil prices has resulted in intensified exploration initiatives in the region, particularly in Angola.

New analysis from Frost & Sullivan (energy.frost.com), The Southern African Oil and Gas Market, finds that the countries with the greatest consumption of refined petroleum products are South Africa, Angola, Namibia and Tanzania. The applications covered in this study are: upstream; refining and manufacturing; supply, transmission and trading; and downstream.

If you are interested in more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"Growth in the upstream oil and gas market of the region is expected to be driven by exploration initiatives within Angola," says Frost & Sullivan Research Analyst Ross Bruton. "Growth in the downstream market of Southern Africa, however, will continue to be primarily driven by the growth in demand for oil products in South Africa."

Zambia, Angola and South Africa all have refining capacity, with South Africa representing over 80 per cent of the total refining capacity of the region.

Inadequate infrastructure and inefficient regulatory processes are major restraints for the efficient and economical transportation of refined products to the market. Underdeveloped and neglected road, rail and pipeline infrastructure leads to an unreliable supply of product to the market, increasing the retail cost of fuel and resulting in fuel shortages across countries.

"Old and damaged infrastructure have restrained the ability to operate effective business practices within Southern African countries," explains Bruton. "Underdeveloped and neglected road networks increase the logistical costs of fuel transport, thereby increasing retail costs."

International oil companies entering the Southern African region need to establish a secure and reliable product supply chain with sufficient storage capacity in proximity to the market. Furthermore, a clear understanding of government policy and regulations regarding import of oil products along with a strong relationship with governmental regulatory institutions is essential to ensure an uninterrupted supply of products to retail outlets.

The Southern African Oil and Gas Market is part of the Energy & Power Growth Partnership Services programme, which also includes research in the following markets: East African Genset Market, West African Transformer Market, Renewable Energy Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

The Southern African Oil and Gas Market / M571

 
 
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Stimulated Economic Growth Spurs the Demand for Oil and Gas in Southern Africa Finds Frost & Sullivan

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Contact: Patrick Cairns 
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