South Africa’s New Oil Discovery Will Change Country's Economy

South Africa’s New Oil Discovery Will Change Country’s Economy

Business

South Africa is that country which doesn’t have any significant industries in it due to which economy of this country hasn’t grown at a higher rate from last many decades. However, now it seems like the proper time for country’s economy because according to recent reports South Africa’s offshore has just found significant resources to produce oil at tremendous quantity. According to reports, the reported place could hold more than one billion gallons of natural gas and other resources. Now major petroleum companies like Qatar petroleums are trying to get a license to discover significant oil field in that region.  If companies get a license, then they can explore at least four oil wells by taking proper permission. This deepwater discovery might change the country’s economy forever, and that’s why the African energy Chamber is pleased about this new oil fields discovery.

Currently, South Africa imports most of its oils from other countries and this discovery will help the country to reduce its cost. There are many essential countries whose economy solely runs from petroleum and natural gases; it seems like now it’s South Africa’s time. Currently, the state is working to bring new legislation on oil exploration which might give more power to government over these new oil fields. From the last few years, many major oil companies have shown their interest in African offshore regions because of growing oil exploration opportunity these companies are finding in this region. South Africa has so far been many major oil companies favorite region, and that’s why country saw lots of oil exploration last year. However, now government of South Africa wants to use this opportunity to scale up their economy, and that’s why implementing new regulations on oil exploration. However, it will be interesting to see how South Africa is going to use this newly discovered oil fields.

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