South Africa should not rule out oil and gas exploration, an international industry group says, arguing global supply shocks and domestic refining shortfalls heighten the need for more fuel security and clearer regulation.
Industry view: exploration remains necessary
Ross Compton, senior director for global policy at the EnerGeo Alliance, told reporters that a combination of geopolitical and climate-related events continues to pressure international oil and gas markets. He said that, against that backdrop, exploration and seismic surveying must remain part of discussions on South Africa’s energy future.
“Providing resources that facilitate centralised power are certainly very important. Natural gas sits within that nucleus, with all the different elements that you would have seen in the integrated resource plan,”
Compton emphasised the challenge of delivering sufficient centralised power to a growing and urbanising population. He noted South Africa’s population sits at between 59 and 60 million people, placing extra demand on energy infrastructure.
Regulatory certainty and recent court rulings
The EnerGeo Alliance urged the government to finalise regulations under the Upstream Petroleum Resources Development Act to provide clarity for investors and operators. Compton said recent court processes had reinforced the importance of public consultation and environmental assessment in licensing, and that these legal decisions highlighted the need for consistent regulatory rules.
He described the Western Cape High Court decisions as supportive of the requirement for robust public participation and environmental scrutiny in exploration licensing.
Drivers of supply pressure
Compton listed a set of external and domestic pressures that, in his view, make oil and gas part of a balanced near-term energy strategy:
- Geopolitical conflict: wars and strategic strikes affecting major producers and supply routes.
- Weather risks: climate-related impacts on refining infrastructure abroad.
- Domestic limitations: constrained refining capacity and what he described as a looming “gas cliff”.
| Pressure | Effect cited by EnerGeo Alliance |
|---|---|
| Gulf conflict and strategic strikes | Reduced global supply stability |
| Weather impacts on refineries | Interruptions to fuel processing and distribution |
| Domestic refining constraints | Greater reliance on imports; supply vulnerability |
Context and consequences
The remarks come amid broader debates about South Africa’s integrated resource mix and the speed of transition away from fossil fuels. While the EnerGeo Alliance framed gas as supporting centralised power and complementing decentralised renewables, its position intersects with environmental and community concerns over exploration activities.
Compton acknowledged legal challenges connected to exploration in recent years but said those disputes had underlined the importance of transparent regulatory processes rather than blocking exploration outright. He argued that clearer implementing rules under the Upstream Petroleum Resources Development Act would reduce uncertainty for companies and communities alike.
Policy decisions on whether to prioritise additional oil and gas development will influence investment flows, the pace of gas infrastructure rollout, and the balance between imports and domestic production. The government’s next steps on regulation will therefore be closely watched by industry players, environmental groups and electricity planners.
Some details in this story are still developing. The EnerGeo Alliance’s position reflects industry perspectives and does not represent government policy.
