Tuesday, 31 July 2007

New broom at Sapia

NEW broom at the South African Petroleum Industry Association (Sapia) Connel Ngcukana, has certainly given the organisation a boot up the proverbial since his appointment in June. From all accounts oil industry relations with Government (the department of Minerals and Energy, the Minister of Minerals and Energy etc al) were not exactly glowing when he took over. The industry tends to get nervous when it drifts too far from the centres of political power, especially in a regulated fuels market like ours. The DME has become tougher on the empowerment agenda, among other things, and not quite so grateful for the presence of multinationals in the country. To remedy this, Connell has set up monthly meetings on key industry issues with the DME and smoothed the way for more regular contacts between the Ministry and oil company executives. Sapia's External Affairs sub-committee has become busier, too. Contacts with the Parliamentary Portfolio Committee on Energy have also improved. Nothing like regular networking to dispel common mis-perceptions about the industry. Surfacing once more is that hoary old belief that dividends should be kept in the country rather than paid to multinational company shareholders. (After all, why should they benefit from their investments, the capitalist swine?) Actually, networking is not enough. What is needed is a consistent, ongoing campaign of public information about the realities of the oil industry. Only such a commitment will eat into the crazy perceptions that exist out there -- especially among the newly enfranchised -- that, for example, manufacturing and selling petroleum products is easy. That would mean the oil industry abandoning its traditions of secrecy, of course. Don't hold your breath.

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