We rarely have time to pause and look at bigger picture of our industry.
The trends that are likely to transform our industry in the coming years. Threat or opportunity, we ignore them at our peril.
Following the industry trends enable us to keep pace with change, to see the opportunities ahead, and to prepare to embrace them.
Here are five megatrends shaping the potential future of the oil and gas(energy) industry in Tanzania
1.Strong Population Growth
The population of this country is growing.
The growing number of people drive the demand of energy in the region.
The population of 2030 will need 50 % more of energy. This means there sufficient demand to justify entry into the energy sector.And creates excellent opportunities for entrepreneurs and investors looking to capitalize on the country’s recent surge in demand for energy by starting new project or expanding their business operation into the energy sector.
2. The rise of venture capital opportunities from abroad and within Tanzania and Africa.
This trend create more opportunities for access to investment in the oil and gas (energy) industry. Obviously, the credit system in many sub Saharan African countries has not been to great so its very expensive to raise capital and that also created a bit barrier to entry for potential entrepreneurs in the oil and gas (energy) business.
But now there a lot of opportunities. Banks are aware that business in the energy sector are lucrative and have great likelihood to succeed due to the growing energy demand in the region. You hear a lot
more about pitch competitions and angle investment networks. This has given a lot of encouragement to new entrepreneurs to enter the business in the oil and gas (energy ) sector.
3.We are now in the “age of petroleum”
Tanzania has evolved from the age of traditional fuel to the age of petroleum and gas. We are no longer in the stone age where people cook with logs of wood. Now, they simply buy kerosene from a petrol station for their cooking. Those who don’t use kerosene use LPG(cooking gas), which they buy from petrol stations
4.Government enter as a competitor.
Several years back, if you start petroleum products marketing business, you would compete with Total energy, Puma energy or any private oil marketing companies. Now, State owned national oil company are also marketing petroleum products. They sell fuel via its network of filling stations.
As the government authorities become a competitor, private companies should employ different marketing strategies to satisfy their customers.
5.Opportunities are everywhere but training and certification are a key component to success in the industry..
The proposed oil and gas projects such as East African crude oil pipeline project, LNG are expected to create excellent opportunities for local workers. The projects need welders, pipefitters, NDT inspectors etc. As the industry adopt technology you need skills and know how to do crude oil pipeline welding to run machine and equipment .
Anybody can learn to fire up the two piece of iron, but you can’t do amateur welding in petroleum pipeline welding.
Oil and gas pipeline welders know the porosity and the temperature of the welds. Welders have education institutions that train and certify them to become pipeline welders. Welders need to be a highly trained.
I hope this helps.