South Africa is moving ahead with plans to establish strategic crude oil and fuel reserves capable of covering 60 days of demand, as government seeks to strengthen energy security amid growing geopolitical uncertainty and volatile global oil markets.
Mineral and Petroleum Resources Minister Gwede Mantashe announced the proposal during the inaugural Fossil Industry Imbizo in Sandton on Wednesday, saying the country remains exposed because of its heavy reliance on imported fuel products.
The announcement comes as instability in the Middle East continues to influence global energy markets, with Brent crude trading close to the $100-a-barrel level for an extended period, increasing the risk of fuel price pressures for consumers.
South Africa Pushes To Strengthen Strategic Fuel Security
Mantashe said South Africa must take proactive steps to reduce its vulnerability to external supply disruptions and improve its ability to withstand future shocks.
According to the minister, building larger strategic fuel reserves forms part of a broader effort to enhance the country’s energy and economic resilience.
He cautioned that South Africa is not adequately prepared for further major disruptions to global fuel supplies and stressed the importance of strengthening reserve capacity as a safeguard against future crises.
Government Seeks Faster Oil, Gas And Shale Development
Alongside plans for larger fuel stockpiles, Mantashe said the government is working to speed up oil and gas exploration activities, including offshore drilling projects and shale gas development initiatives.
He urged the Department of Forestry, Fisheries and the Environment to expedite processes aimed at lifting the current moratorium on hydraulic fracturing, commonly known as fracking.
“We need regulation for shale gas, we need regulation for shale gas so that we can actually lift the moratorium on shale gas. Those who are interested amongst you can go and drill for shale gas. And technology has improved, we no longer have the fear of water and breaking the rock. Modern technology makes it efficient to access shale gas,” he said.
[Delayed As Didiza Orders Further Talks On Key Disputes]
Mantashe has long supported the expansion of fossil fuel projects and has previously disagreed with environmental groups over the potential development of shale gas resources in the Karoo Basin and other regions.
Environmental organisations have consistently expressed concerns about the potential impact of fracking on underground water resources and other environmental risks.
Despite these concerns, the minister maintains that advances in technology have improved the efficiency and safety of shale gas extraction, making it a viable option for strengthening South Africa’s energy supply.
