Safety, health and the environment are the lowest priorities for oil and gas executives for the next three years — although in 2013 they were the top future priority — as companies struggle to survive in a tough pricing environment and BP’s 2010 Macondo well disaster has largely faded from memory, according to the global advisory and audit firm PwC’s sixth oil and gas review, which surveyed the views of 60 executives in the sector on current and future challenges.

Africa has 7.6% of the world’s proven oil reserves and 7.5% of proven gas reserves, according to PwC. After years of exploration on other continents, Africa has attracted more attention. Potential industry investments in Nigeria, Egypt, Libya, Angola and Mozambique are expected to be worth $40bn a year over the next five years.

In 2015, nine of the world’s biggest 20 oil and gas finds were in Africa — mainly gas fields in Egypt, Angola and Mozambique.

The annual review showed that oil and gas executives’ biggest concern over the next three years was oil and gas prices, followed by the regulatory environment in which they operated. These were also the top concerns last year.

The review states there have been major shifts in the operating environment for oil and gas companies, which required them to adapt. These included climate concerns and changes in society and economic power.

Most executives in the survey expected average crude oil prices this year would be $51-$60 a barrel, rising to $61-$70 a barrel in 2017 and 2018.

Source: Business Day Live http://www.bdlive.co.za