From
fragile
to agile
Chris Bredenhann, PwC, South Africa, takes a look at what 2016
holds for the oil and gas industry in Sub-Saharan Africa.
consensus is that lower oil prices would be around for longer. OPEC
predicts that oil prices will stay below US$80/bbl until 2020.
At the moment the environment has been described as a fight
between the oil Sheiks and the American shale cowboys. The
question is how long can the Sheiks or the American shale cowboys
keep going at low oil prices. Who will yield first? Fiscal deficits
in some traditional producing nations are starting to hurt. This
is especially noticeable in countries such as Nigeria and Angola,
where production costs are higher than Arab OPEC countries where
the marginal cost per barrel is less than US$10/bbl.
Overall, activity in the oil and gas industry across the
African continent has slowed in the wake of the low oil price
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