Is Global Energy Transition An Opportunity or Curse for Tanzania and Oil and Gas Sector?

There is a clamor by developed countries to reduce carbon emissions and curb global warming by ending fossil fuels.

This rush to move away from fossil fuels has caused certain international commercial banks to refuse to fund the development of the oil and gas projects and shift the budget to renewable energy projects like solar and wind.

But the demand for fuel is increasing in Tanzania and East Africa. Without new investment and sufficient funding for hydrocarbon development, we will not build new oil and gas pipelines, gas plants, and oil storage facilities that could add up to the fuel supply in Tanzania.

The critical question is whether the current energy transition will kill Tanzania’s oil and gas industry?

No Economy Can Function On Wind and Solar Alone.

Renewable energy has incredible potential and should be exploited to its fullest. But wind and solar alone cannot meet the growing energy demand in Tanzania and East Africa.

 

The global energy transition is an opportunity for Tanzania’s oil and gas industry to contribute to the energy mix rather than cutting the development and utilization of fossil fuels and other forms of energy.

Many developed countries run out of oil and gas(hydrocarbon) reserves. So there should be a balance between fossil fuels and renewable energy investment to avoid an energy supply chain gap in the country, as witnessed in Europe.