As the world navigates through a global transition, the Oil and Gas sector are facing their own transition. With Hydrogen being the buzz word making waves in the oil and gas industry, the concept still needs to be mastered theoretically and implemented and work towards a renewable energy solution that will address opportunities and challenges of investment on the continent and create an enabling environment.
We were privileged enough to get a direct outlook where the future of the continent’s Oil and Gas sector is headed towards. Mr. Abdur Rasheed Tunde Omidiya outlined positive outcome Africa will see; the Continent should prioritize advocating for sustainable investments within the sector, free markets, individual liberty, and enabling environment for investors to inject more financing investments into oil and gas that will aggregate the markets ensures that Africa’s oil and natural gas industry and Africans stand to benefit, rather than continuing a reliance on foreign aid and assistance.
STEPS TO AN AFRICAN ENERGY BANK
The steps to an Energy Bank might not be the easiest but an actualized dream for Africa in Infrastructure and utility can become a reality soon. will come true building and financing and financing projects in infrastructure and investment. The history of energy projects It’s a premium route we ought to be focusing on. Energy bankruptcy took place way too due to foreign investments done by foreigners who were the Original off takers which in essence left no space for Africa to partake in without relying on financial aid. As we slowly shy away from being dependent for decades on financing a lot needs to be happy.
We need to help ourselves by having energy for Africa by Africans.
Countries that have set goals for 2050 and have committed themselves that energy projects that they will implement should take roughly 20 years to indicate ROI. All projects proposed should be piloting before 2030 to show commitment. All the investment on the ground should Be able financed by the Energy Bank to build countries in Africa, the old models should slowly be erased as new ones are introduced that focus on pushing for energy projects in Africa done by Africans to be on ground constructing all these contracts instead of citing them for foreign companies to lead the projects.
In the next 8 years, Africa should be an industrialized continent that can independently take on projects because regulations, policies and advanced technological techniques that have been put in place will be based on the continents own accord that will sign mega energy projects that will build green energy, facilities that will be needed such as gas and oil.
The Energy Bank should start working as soon as possible to get the energy required.
PROCESS OF FUNDING
If Africa could be able to work with one currency it could eliminate the complexities which most African currencies struggle with. When we look at the value of a dollar it remains a dollar therefore if we want the African Bank to truly prosper and see projects being taken by Africans for Africans, the conscience should be that the Bank should guarantee ROI for investors who are willing to see the bank succeed. Partners of the energy Bank should be able to demonstrate a concise policy framework that outlines the purpose of the funds that will be allocated to yield more energy projects and assure the Investors that the long term goal is to see that Talking about funding, investors are looking to where they can invest their money. A dollar is always a dollar irrespective of what you put in for investment purposes. With ROI. The strategic process in the oil and gas industry must demonstrate that it has a good strategic economic structure and policy framework to grow the reserve bank and guarantee the investors they will get their money back.
Africa is considered a premium risk when it comes to investments but it is our duty to change the narrative by following the trends and develop other channels that give investors the opportunity to see their ROI when they see that the projects open to investment are feasible.
Africa has been divided and segmented for too long. And some of the demands for energy cannot be met by some individual countries that simply put sets us for failure as a continent, therefore we must come up with a strategic way that will allow for the oil and gas to work for all countries which could maximize production and prospects with good returns. When MSGBC was formed it comprised countries that showed growing international investment interest that positioned them for foreign direct investment(FDI). African countries lack a structured policy framework that can benefit the countries to become key role players and have the final say with the raw material extracted within the countries by being able to build infrastructure which these countries can share pool. Although there is room for improvement, as with any emerging market economy the overall trend is positive to continue strengthening regulatory frameworks that can give way to building stronger institutions and promote transparency. The one policy structured framework will push for the original off takers such as the MSGBC collectively to play a vital role in the economy and the environment in which aligns with the COP26 and Paris Agreement giving room for curated projects to offtake and being able to pilot Gas, hydrogen and energy hubs in and around Africa.
Africa cannot adopt or transition to Hydrogen when the majority do not even know about it, the markets are not conducive nor friendly enough for us to adapt to it now. The continent still lacks core technical skills that can run the operations of Hydrogen plants. However, we simply cannot deny that Hydrogen and Renewable energy is the promise land the continent works towards. The reality still remains whether it will be feasible and affordable to be adopted as an alternative energy option now. Politicians in African countries should see to it that they do not become greedy but put the continent first and apply a robust system that indicates the direction that will be taken towards adopting Hydrogen as an alternative Energy.
Carbon Tax is a relatively new Tax concept that will influence majority of the impact carbon (CO2) affects the environment, Africa has so many opportunities to reform and become one of the key players when it comes to combating climate change and eliminating high carbon footprints, but what is needed mostly are facilities to capture and store gas emitting high carbons into the environment. We should be able to build and facilitate hydrogen and gas hubs that capture carbon or storage that is in conjunction with the carbon tax rules.
Companies are starting to adopt ESG standards but for Africa it seems like a slow process, and Africa cannot afford to be behind again in future to incompetence hat can be evaded now. When we look at ESG reports we have to look at ESG policy and compliance and see how can Africa adopt the source of products produce in Africa and align them with the global standards by being able to technologies that can measure carbon footprint, we cannot simply follow rules and regulations that don’t speak to the continent which could be detrimental in the future. We have to track back from supply chain and calculate the carbon footprint of all the resources extracted and produced by implementing certain policies that will come into play through the three carbon scopes that identifies the intensity of carbon emission by certain heavy industries, this will eliminate any complexities that companies find themselves facing today, we simply cannot afford to discontinue businesses that are not aligned with the ESG standards an implemented gas and economic model could lower costs for companies to adapt without any losses. Developed countries are trying to industrialize Africa and keep us in the dark again so we lag behind, Africa should find a holistic approach for gas, oil and energy companies that are in-sync with carbon tax compliance that will also benchmark your carbon footprint by adopting more technologies, IOT, Data and ESG certifications.
TECHNOLOGY IN AFRICA
Technology is here to stay whether we like it or not, it is time to do away with traditional systems that do not serve the industries, the 4th Industrial Revolution has fast-tracked the adoption of technology which has proven to maximize production in business and how efficient it is for the oil and gas to adapt to it. The reality is that the Energy Sector is highly competitive and is driven by performance which reduces time constraints, predicts production accurately with less costing due to adopting technology such as Machine Learning, Business Intelligence, Forecasting analysis these all indicate the positive trajectory we are moving towards.
Blockchain Evolution has also taken a great mark within the technology space and can revolutionize the Oil and Gas sector by completely assuring liability for any corruption that might be attempted, Blockchain supplies ledger transaction that cannot be forged nor duplicated and eases off any complexities that might occur where companies are in dispute as it will cater to smart contracting and IOT and sets Africa to compete in future markets and scale up to global standards. If we can adapt now we are setting ourselves for greatness as the world evolves we can keep up with the changes.
The looming climate change will be among some factors driving a heightened use of Hydrogen by Africa as a potential technology to reduce their reliance on fossil fuels, accelerate access to electricity for millions of Africans by increasing the exploitation of renewable energy resources, and to meet their global climate commitments.