Energy finds in Africa highlight shifts in sector - DHL report

BUSINESS

|
Image: By DHL
Energy finds in Africa highlight shifts in sector - DHL report

The recent oil and gas finds in Africa will continue to have a positive impact on local economies, if local African suppliers, service providers and other businesses are geared up to service this growth.

This is according to Steve Harley, President of the Energy Sector, for DHL Customer Solutions & Innovations. Harley says that these energy finds provide many possibilities for local businesses, to echo the express operator’s own marked increase in the transportation of energy-related material in the region.

Harley says that forecasts expect African oil supply growth to continue over the next 25 years, with predicted ranges of growth over the period of between 0.5 million and 2.0 million barrels per day. “Africa will need to adapt in order to keep up with the demand, as well as evolving trends in this highly competitive sector.”

He says that globally, the steady and reliable supply of energy is critical to economic activity, and due to Africa’s availability of the resource, it is expected that the continent will see continued and steady economic growth.

“We have also witnessed an increased demand for the resource on the continent, and currently Africa is the region with highest increase in oil consumption globally – 5% in 2012 versus only a 1% increase globally. This is likely to continue as many of the fastest growing economies are situated on the continent.”

Harley does warn though that, as the easily obtainable oil reserves have been has depleted, that most of the new developments are either very remote or technically challenging, which brings issues of infrastructure, transportation and expertise to the fore.

“Forecasts predict that conventional oil production will decline by five percent per year. Extraction from unconventional sources is more complex and relatively more expensive from a supply chain perspective. As such, customers will need complementary expertise from integrated logistics suppliers to meet the challenges of these new geographies and technologies.”

Harley points to DHL’s recent global white paper on Maintenance, Repair and Operations (MRO) supply chain management for energy companies, which shows the oil and gas businesses will require integrated suppliers that are able to support them with end-to-end supply chain solutions. According to the white paper, logistics suppliers need to provide a global footprint in combination with local market expertise. As a trustworthy partner, they also need to drive cost and process optimization and maintain safety and compliance both on and off-site.”

“This is particularly true in Africa,” notes Charles Brewer, Managing Director for DHL Express Sub-Saharan Africa. “While the continent is showing promise, issues around infrastructure, regulatory hurdles, and lack of an integrated supply chain in most markets, can be a major hindrance for energy businesses. Couple that with the need to optimise production and improve supply chain management to enhance service and reduce cost, and you understand the need for integrated suppliers to introduce more robust metrics, optimize the inventory and find cost-effective transport solutions.”

To download the report, please visit: http://www.dhl.com/energywhitepaper

 



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

TNM first quarter net profit jumps to K1.8 billion

Malawi's mobile telecoms network service provider TNM continues to realise an increase in net profit from operations. Read More

Revenues from tablet games to triple

New data from Juniper Research has revealed that by 2019 worldwide revenues from tablet games will reach $13.3 billion – a threefold rise on the 2014 figure of $3.6 billion. Read More

Airtel Uganda hosts high value customers at Business Leaders’ Forum

Enterprise Director, Airtel Uganda, Mr. Oladapo P. Sorinolu Airtel Uganda has hosted an Enterprise Expo in Mbarara district, Western Uganda, as part of efforts to provide practical and modern business solutions to its high value customers.  Read More

Safaricom, Airtel complete yuMobile deal

Safaricom and Airtel have completed the US$120 million acquisition of yuMobile from Essar Telecom. Read More

GrowthAfrica, Usahibu partner to solve SME accounting issues

Kenyan accelerator GrowthAfrica has partnered cloud computing firm Uhasibu in a bid to address the accounting and financial software needs of East African startups and small and medium enterprises (SMEs). Read More

Top 10 risks worth considering when expanding into Africa

Companies planning to expand across Africa must make a concerted effort to understand the risks, and not assume they “know” Africa, says ContinuitySA. Read More

Shop Soko connects Kenyan artisans to lucrative international markets

A new e-commerce platform, Shop Soko, is helping Kenyans access a lucrative international market. Read More

Ricoh SA begins rollout of new services-led strategy, Africa expansion

Jacques van Wyk has been appointed Ricoh SA’s new COO to drive the expanded strategy that will enable the business to become a services-led organisation and see its expansion into the rest of Africa. Read More

Stock Exchange launches news service

A news service by the name of X-News has become the latest product coming from the local bourse, the Botswana Stock Exchange (BSE) recently. Read More

Telkom forays into Botswana through acquisition

South African telecommunications giant Telkom is making inroads into the Botswana market through the acquisition of an ICT company, Business Connexion (BCX).  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Safaricom-Equity battle for mobile banking hots up Safaricom-Equity battle for mobile banking hots up

Equity bank's entry to the mobile banking and telephony industry is still hanging in the balance with London-based global association of mobile operators (GSMA) calling for independent audit. 

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.