{"id":27771,"date":"2022-08-16T17:22:55","date_gmt":"2022-08-16T17:22:55","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia"},"modified":"2022-11-03T13:34:28","modified_gmt":"2022-11-03T13:34:28","slug":"navigating-the-global-energy-transition-economic-imperatives-for-namibia","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia","title":{"rendered":"Navigating the Global Energy Transition: Economic Imperatives for Namibia"},"content":{"rendered":"

Wayne Rukero<\/strong><\/p>\n

Africa-Press – Namibia. <\/strong><\/span>NAMIBIA HAS made its biggest oil discoveries since independence and these could potentially help double our country’s economy by 2040.<\/p>\n

Within three weeks of each other, ShellPlc and TotalEnergies SE announced in February this year they had made \u201csignificant\u201d oil discoveries off Namibia’s coast.<\/p>\n

To date, explorers have drilled more than a dozen exploration wells in search of oil and gas. Wood Mackenzie consultants estimate that the combined recoverable finds amount to almost four billion barrels of oil.<\/p>\n

At their peak, these two discoveries could generate about US$5,6 billion for Namibia’s economy post full production.<\/p>\n

Nevertheless, TotalEnergies and Shell executives have cautioned that the discoveries still await an appraisal stage to accurately determine their size.<\/p>\n

With countries and companies pledging to hit net zero climate targets around 2050, Namibia has about a decade to develop and make the most of the recent finds in helping transform the country’s economy.<\/p>\n

At the same time, global trendsetters such as the World Economic Forum (WEF) are invested in the mission of accelerating energy transition.<\/p>\n

The WEF is committed to helping limit global warming to less than 1,5 degrees Celsius above pre-industrial levels, while ensuring that the energy of the future is affordable, secure, and inclusive.<\/p>\n

It specifically aims to nurture industry actions, initiatives, and outlooks necessary to catalyse the transformation of the energy landscape \u2013 and to help accelerate the overhaul of national energy systems and key industrial sectors.<\/p>\n

STRIKING A BALANCE<\/strong><\/p>\n

However, navigating the energy transition requires a balanced approach.<\/p>\n

This approach brings into equilibrium the three crucial (economic) dimensions of the energy triangle, namely economic development and growth, energy security and access, and environmental security.<\/p>\n

Thus, a bold move away from fossil fuel exploration in the spirit of energy security and access and environmental security without considering the other pillars, namely, economic development and growth, will result in lopsided outcomes.<\/p>\n

Smaller economies such as Namibia, having made major inroads into the oil and gas sector, will seek to bank on their precious findings to save a stuttering economy.<\/p>\n

In addition, unprecedented events such as the Covid-19 pandemic and the Russia-Ukraine war have caused severe economic downturns globally \u2013 in both developed and developing countries.<\/p>\n

Russia’s invasion of Ukraine constituted a perfect storm, creating headwinds for all three imperatives of the energy triangle.<\/p>\n

High energy prices pose risks to economic growth and have raised the cost of basic commodities and cost of living everywhere.<\/p>\n

In countries whose economies rely on fossil fuels and produce oil and gas, investment and extraction activities can directly increase economic activity from the oil and gas sector.<\/p>\n

Thus, the production of oil and gas for domestic consumption and export is perceived by many governments in low-and middle-income countries as a way to attract foreign investment, boost economic growth, and provide revenue to support economic development in other sectors.<\/p>\n

Industrialisation may also be powered by energy sources and make things move.<\/p>\n

It is, however, conceded that the world now has alternative technologies using renewable energy sources.<\/p>\n

These alternatives, and progress in the transition to renewable energy, vary between different energy uses across the world.<\/p>\n

‘RESOURCE CURSE’<\/strong><\/p>\n

Experts argue that the economies of countries rich in oil and gas resources have generally performed unsuccessfully in the past compared to resource-poor countries.<\/p>\n

Many oil-and gas-producing countries have not been able to take advantage of their resource wealth and invest in increasing productivity in other sectors or in establishing strong sovereign wealth funds.<\/p>\n

The ‘resource curse’ and ‘Dutch disease’ are often given as reasons for the poor economic performance of countries rich in natural resources.<\/p>\n

Dutch disease describes the paradox which occurs when good news, such as the discovery of large oil reserves, harms a country’s broader economy.<\/p>\n

The relationship between oil and gas production and economic growth in low-and middle-income countries has not always been complementary.<\/p>\n

It is affected by governance conditions and the efficacy of regulatory institutions, amongst others.<\/p>\n

To harness its oil and gas discoveries sustainably, it is vitally important for Namibia to navigate the energy transition successfully.<\/p>\n

Scrupulously probing adverse governance conditions and monitoring the effectiveness of regulatory institutions is key.<\/p>\n

Although alternative technologies now exist globally, using renewable energy sources towards a just energy transition, economies such as Namibia’s must be given an opportunity to pursue its oil discoveries in an attempt to stimulate economic recovery, growth and industrialisation.<\/p>\n

On an industry level, exploration and production plans must be revised and reviewed to complement contemporary technologies using renewable energy sources in the oil and gas sector.<\/p>\n

* Wayne Rukero is an international economic law and policy researcher and candidate attorney. Email: [email protected]; Twitter: @SelwynWayne<\/p>\n

Within three weeks of each other, ShellPlc and TotalEnergies SE announced in February this year they had made \u201csignificant\u201d oil discoveries off Namibia’s coast.<\/p>\n

To date, explorers have drilled more than a dozen exploration wells in search of oil and gas. Wood Mackenzie consultants estimate that the combined recoverable finds amount to almost four billion barrels of oil.<\/p>\n

At their peak, these two discoveries could generate about US$5,6 billion for Namibia’s economy post full production.<\/p>\n

Nevertheless, TotalEnergies and Shell executives have cautioned that the discoveries still await an appraisal stage to accurately determine their size.<\/p>\n

With countries and companies pledging to hit net zero climate targets around 2050, Namibia has about a decade to develop and make the most of the recent finds in helping transform the country’s economy.<\/p>\n

At the same time, global trendsetters such as the World Economic Forum (WEF) are invested in the mission of accelerating energy transition.<\/p>\n

The WEF is committed to helping limit global warming to less than 1,5 degrees Celsius above pre-industrial levels, while ensuring that the energy of the future is affordable, secure, and inclusive.<\/p>\n

It specifically aims to nurture industry actions, initiatives, and outlooks necessary to catalyse the transformation of the energy landscape \u2013 and to help accelerate the overhaul of national energy systems and key industrial sectors.<\/p>\n

STRIKING A BALANCE<\/strong><\/p>\n

However, navigating the energy transition requires a balanced approach.<\/p>\n

This approach brings into equilibrium the three crucial (economic) dimensions of the energy triangle, namely economic development and growth, energy security and access, and environmental security.<\/p>\n

Thus, a bold move away from fossil fuel exploration in the spirit of energy security and access and environmental security without considering the other pillars, namely, economic development and growth, will result in lopsided outcomes.<\/p>\n

Smaller economies such as Namibia, having made major inroads into the oil and gas sector, will seek to bank on their precious findings to save a stuttering economy.<\/p>\n

In addition, unprecedented events such as the Covid-19 pandemic and the Russia-Ukraine war have caused severe economic downturns globally \u2013 in both developed and developing countries.<\/p>\n

Russia’s invasion of Ukraine constituted a perfect storm, creating headwinds for all three imperatives of the energy triangle.<\/p>\n

High energy prices pose risks to economic growth and have raised the cost of basic commodities and cost of living everywhere.<\/p>\n

In countries whose economies rely on fossil fuels and produce oil and gas, investment and extraction activities can directly increase economic activity from the oil and gas sector.<\/p>\n

Thus, the production of oil and gas for domestic consumption and export is perceived by many governments in low-and middle-income countries as a way to attract foreign investment, boost economic growth, and provide revenue to support economic development in other sectors.<\/p>\n

Industrialisation may also be powered by energy sources and make things move.<\/p>\n

It is, however, conceded that the world now has alternative technologies using renewable energy sources.<\/p>\n

These alternatives, and progress in the transition to renewable energy, vary between different energy uses across the world.<\/p>\n

‘RESOURCE CURSE’<\/strong><\/p>\n

Experts argue that the economies of countries rich in oil and gas resources have generally performed unsuccessfully in the past compared to resource-poor countries.<\/p>\n

Many oil-and gas-producing countries have not been able to take advantage of their resource wealth and invest in increasing productivity in other sectors or in establishing strong sovereign wealth funds.<\/p>\n

The ‘resource curse’ and ‘Dutch disease’ are often given as reasons for the poor economic performance of countries rich in natural resources.<\/p>\n

Dutch disease describes the paradox which occurs when good news, such as the discovery of large oil reserves, harms a country’s broader economy.<\/p>\n

The relationship between oil and gas production and economic growth in low-and middle-income countries has not always been complementary.<\/p>\n

It is affected by governance conditions and the efficacy of regulatory institutions, amongst others.<\/p>\n

To harness its oil and gas discoveries sustainably, it is vitally important for Namibia to navigate the energy transition successfully.<\/p>\n

Scrupulously probing adverse governance conditions and monitoring the effectiveness of regulatory institutions is key.<\/p>\n

Although alternative technologies now exist globally, using renewable energy sources towards a just energy transition, economies such as Namibia’s must be given an opportunity to pursue its oil discoveries in an attempt to stimulate economic recovery, growth and industrialisation.<\/p>\n

On an industry level, exploration and production plans must be revised and reviewed to complement contemporary technologies using renewable energy sources in the oil and gas sector.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Wayne Rukero Africa-Press – Namibia. NAMIBIA HAS made its biggest oil discoveries since independence and these could potentially help double our country’s economy by 2040. Within three weeks of each other, ShellPlc and TotalEnergies SE announced in February this year they had made \u201csignificant\u201d oil discoveries off Namibia’s coast. To date, explorers have drilled more […]<\/p>\n","protected":false},"author":84,"featured_media":27770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,8,16],"tags":[234,236,233],"class_list":["post-27771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nNavigating the Global Energy Transition: Economic Imperatives for Namibia - Namibia<\/title>\n<meta name=\"description\" content=\"Wayne Rukero NAMIBIA HAS made its biggest oil discoveries since independence and these could potentially help double ou ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Navigating the Global Energy Transition: Economic Imperatives for Namibia\" \/>\n<meta property=\"og:description\" content=\"Wayne Rukero NAMIBIA HAS made its biggest oil discoveries since independence and these could potentially help double ou ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-16T17:22:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-03T13:34:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/08\/postQueueImg_22-62fbd758a1614.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"624\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Navigating the Global Energy Transition: Economic Imperatives for Namibia\",\"datePublished\":\"2022-08-16T17:22:55+00:00\",\"dateModified\":\"2022-11-03T13:34:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia\"},\"wordCount\":1525,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/08\/postQueueImg_22-62fbd758a1614.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"files\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/navigating-the-global-energy-transition-economic-imperatives-for-namibia\",\"name\":\"Navigating the Global Energy Transition: Economic Imperatives for Namibia - 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