Opinion: South Africa’s energy debate has skipped a step
In this opinion article, Dr Ross Compton, who is Senior Director of Global Policy for the EnerGeo Alliance, argues that South Africa has oil and gas geological potential and that an enabling environment for responsible seismic surveys and exploration should, thus, be created.
To many people, oil and gas can feel like a distant industry, something debated in policy circles and global markets, far removed from everyday life. But the reality is much closer to home. Oil and gas are woven into the fabric of daily life, powering the industries, jobs and conveniences that make our livelihoods possible.
Petrol and diesel power the cars, taxis, buses and trucks that carry people, food and goods across the country. Oil and gas also underpin the manufacturing of products South Africans rely on every day: fertilisers, medicines, paints, clothing, cleaning products, packaging and construction materials. They are central to industrial activity like mining, agriculture, logistics and heavy industry, which all depend on reliable access to fuel, electricity, gas and petroleum-based inputs. When these inputs become more expensive or unreliable, the effects ripple across the economy through higher transport costs, pricier food, reduced factory output and greater pressure on household budgets.
This is why South Africa’s energy debate cannot be oversimplified to a single energy source. The country needs a diversified energy system. One capable of supporting economic growth and industrialisation, while supporting a responsible move to a lower-carbon economy, without compromising reliable access to energy.
Gas a bridge to a stronger grid
Natural gas has a particular role to play. Gas-fired power generation can be brought online quickly when electricity demand spikes or when variable alternative sources such as wind and solar fall short. It complements alternative energy, strengthens grid stability and reduces reliance on more carbon-intensive emergency generation.
The benefits extend well beyond the grid itself. More reliable electricity significantly improves quality of life: it supports businesses, protects jobs, reduces disruptions to schools and hospitals, and keeps the cost of producing and transporting goods more predictable.
The case for domestic production
There’s a major strategic advantage for developing South Africa’s own oil and gas resources. The country currently imports a significant share of the fuel and petroleum products it consumes, which means that when global prices rise or the rand weakens, households and businesses pay the price. Domestic production would not eliminate this exposure entirely, but it could improve energy security, attract investment, create specialised jobs and support new industries across the value chain.
Other countries offer instructive examples of what responsibly managed resources can achieve. Norway built industrial capabilities and local expertise from its petroleum sector and channelled the proceeds into a sovereign wealth fund to benefit its citizens. Qatar and the United Arab Emirates used energy revenues to invest in infrastructure, logistics, education and economic diversification. On the continent, Nigeria, Angola, Mozambique and Ghana have used oil and gas projects to support infrastructure development, export earnings and local supply chains.
Facts before assumptions
Much of the public debate starts with assumptions about what development would look like before the country has established what resources exist, where they are located, whether they are commercially viable, or how they might be developed responsibly.
That is precisely why exploration matters.
Seismic surveys are the first step in understanding whether South Africa’s offshore geology holds meaningful energy potential. They allow scientists and geologists to map rock formations beneath the seabed and identify areas that may warrant further investigation. Only after that data is gathered can companies determine whether exploratory drilling is justified to confirm the presence of oil or gas and assess whether any discovery could be commercially viable.
That process is not outside environmental oversight. Before seismic or exploratory activities can proceed, companies must complete an environmental impact assessment, or EIA, a formal review that identifies potential environmental and social impacts, evaluates risks, consults affected stakeholders and sets out measures to avoid, reduce or monitor those impacts. Government authorisation depends on that evidence-based process.
Environmental concerns must be taken seriously. Every stage of energy development operates within a regulatory framework informed by scientific evidence and subject to appropriate monitoring and mitigation measures. In turn, responsible regulation should enable evidence-based exploration rather than block it outright. Seismic technology is well established, having been used globally for more than 50 years and in South Africa since the 1970s. The question should not be whether exploration is allowed at all, but whether it is conducted responsibly, transparently and in line with scientific evidence.
Weighing the potential
South Africa faces persistent unemployment, weak economic growth, strained public finances and an electricity system that continues to constrain development. Given these pressures, the country cannot afford to close off potential sources of investment, energy security and industrial growth without first understanding what is actually at stake.
Oil and gas will not solve every economic or energy challenge on their own. But they can form part of a balanced energy and industrial strategy that recognises the realities of the country’s economy and its development needs.
South Africa has geological potential. The next step is to determine what that potential means in practice. Creating an enabling environment for responsible seismic surveys and exploratory activities will allow the country to establish the facts, assess the risks and opportunities, and decide, based on evidence, not assumptions, whether these resources can help build a more secure, affordable and prosperous future.
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