LAGOS – Mr Jonathan Shortis, Vice President for DHL’s Energy Sector (Europe, the Middle East and Africa), has said that Africa’s transforming energy sector required new approach from the industry’s players.
DHL said in a statement on Friday in Lagos, quoted Shortis was as saying that there was the need to develop new technologies to meet the challenges in the sector.
According to the statement, growth in the conventional energy sector currently hovers around one to two per cent per annum, while unconventional segment is booming.
It said the global energy industry was undergoing a seismic shift, in part driven by development of new, unconventional sources of energy, such as shale, coal, seam gas and oil sands.
The statement recalled that the BP Energy Outlook 2030 predicted that shale gas production would triple and that tight oil production would increase more than six-fold by 2030.
It said that it expected the sector’s executives to employ traditional energy supply chain models and implement a highly integrated approach to drive down logistics costs and enhance profit margins.
The statement said that in Africa, there had been significant growth in oil and gas exploration and production due to its untapped resources and potential of new discoveries.
It added that as in many other parts of the world, the development of unconventional reserves in the region was still in its infancy.
“While there is a view that reserves in areas such as North Africa and South Africa are substantial, little development has taken place,” it said.
It added that due to the ongoing shift in geographies of energy production and demand, energy firms were required to adjust their approach to supply chain management. (NAN)