South African oil industry gains on stimulated economic growth

Analyst Frost & Sullivan notes the impact that stimulated economic growth has had on the gas and oil industry of South Africa.

With a number of different factors affecting the local oil industry during 2010, opportunities have arisen at a variety of stages in the process.

For instance, with crude prices higher, exploration efforts have intensified, with Angola one centre for new initiatives.

As related industries recover from the economic turbulence of 2008 and 2009, Frost adds that oil products are seeing greater demand.

The growth in custom for natural resources and minerals is helping to improve downstream prospects for operators in the region, the analyst says.

Research analyst Ross Bruton explains that demand within South Africa is driving the downstream market, while the Angolan exploration is helping upstream operations to gain ground.

The report comes from Frost's Energy & Power Systems practice, which addresses trends and challenges within the sector to help firms find new growth opportunities.