Thursday, 06 September 2007
A slow but sure march of bureaucracy
THE slow but steady encirclement of the energy industry in South Africa by politicians and bureaucrats is now obvious. There always has been a strong element of government intervention in this a market -- Eskom, Petronet (now Transnet Pipelines) Sasol, Mossgas (Petrosa) are obvious examples. But think about what has happened lately (especially regarding the liquid fuels industry); a new regulatory body The National Energy Regulator (Nersa) now issues licences( ie permissions) on every aspect of the energy sector, down to who shall, or who shall not, run service stations, operate storage depots, construct pipelines, be employed; the threat of a windfall tax, followed by an increasingly cosy relationship between Government and Sasol who are now virtually compelled to build another coal-to-liquids-plant; the sudden emergence of all kinds of people with a claim to a share in the oil industry (sundry individuals with political connections who announce, on their business cards, that they are oil traders, the "Women in Energy" who claim their gender entitles them to support from the oil companies; shadowy companies who claim loudly that they can build new oil refineries; monster government plans to cover the Eastern Cape with Jatropha plantations to make bio-diesel; alcohol distilleries owned by farmers are popping up in the Maize Belt, people with no experience scrambling for licences to build oil pipelines .... And where, in all this, are the so-called oil majors? Do they plan to build more refineries? Are they planning to extend the ones they have? Are they prepared to follow mouth with money when it comes to the new infrastructure the country desperately needs? Nope. Just deafening silence. Fancy a long-term career with Shell SA, Chevron SA, BPSA, anyone?
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You wonder where the oil majors are--check where they're investing...these companies especially Exxon have been investing in FT fuels as well. The major oil companies are also interested in seeing how much money they can make from this boondoggle.
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