One of the most important resources that a country could have during the 20th century and even today is oil or gas. South Africa unfortunately, doesn’t show much promise in that departments as their proven oil and gas reserves are close to nothing. The exploration for these resources started in 1913 and unfortunately has proven quite disappointing. The 1990s were able to show at least some kind of resemblance of an oil and gas reserve. South African Forex brokers were elated to find this out because of the fact how much their currency would be connected to oil prices which were on their way up at that time. Unfortunately, however, for them, the amount of the reserves discovered was quite insignificant for international trade. It was quite convenient for local usage though.
Nothing Too Significant Has Been Disocvered Yet
Don’t take it the wrong way if you’re from South Afric. We acknowledge the fact that there have bee discoveries made around the counry, but unfortunately, they only amount to about 15 million barrels in total. No matter how hard it is to try it is just enough for international trade. Obviously, the country can put up the commodity for sale, but then it would just be harming itself by resorting to more expenseive imported oil. If they keep what they have, then their energy expenditures are going to become close to nothing.
PetroSA is one of the largest companies in South Africa that has dealings with oil reserves. The company is state-owned and is operating throughout the country. The reports of discoveries from PetroSA have also been very poor. The company is able to generate no more than 5,000 barrels of crude oil per day. Most of these generated barrels are coming from the same dig sites like Oribi and Oryz fields that are located on the south coast of South Africa. The amount is quite lowered compared to a few years ago when the maximum amount was at least 160,000 barrels per day.
Pre-drilling exploration has been going on since 2012 and numerous companies have been involved. One of the most notorious ones is Exxon Mobil that is still operating within the country to this day. One of the major additions to the company group was Shell, which was given the green light in October 2015 to start drilling in the Orange basin.