The US is signaling a stronger push into Africa’s oil and gas sector despite tensions in South Africa

U.S. Companies Deepen Engagement in Africa’s Oil and Gas Landscape Amid Shifting Diplomacy

While high‑level diplomatic and trade ties between the United States and South Africa remain tense, American firms and government officials are signalling a clear intent to expand their footprint in the continent’s oil and gas sector. This momentum was evident at the 20th African Refiners and Developers Association (ARDA) conference held in Cape Town this week, where U.S.–based companies and federal representatives met alongside a modest European private‑sector contingent.

Honeywell’s Commitment to Long‑Term Skills Development

Kelly Seibert, Vice President of Honeywell UOP Refining, told delegates that the company aims to “maximize the monetisation of installed assets” through a multi‑pronged human‑capital strategy. Rather than relying solely on classroom training, Honeywell blends instructor‑led sessions with on‑the‑job mentorship, startup‑to‑program staff connections, and continuous lifecycle engagement.

Seibert explained that this lifecycle approach starts at project conception and extends for 20–30 years, ensuring that skills acquired today remain relevant as facilities age. “We want to use you over the next two to three decades to guarantee that the competencies you gain are applied as effectively as they were on day one,” she said.

Energy Security Concerns Driving U.S. Interest

Ken West, President of Honeywell, highlighted two converging pressures that make Africa an attractive market for U.S. technology and expertise:

• Demographic growth: More than 60 % of global population increase between 2026 and 2050 is projected to occur on the African continent, translating into rising demand for refined fuels, plastics, and household chemicals.^[1]
• Geopolitical volatility: Ongoing tensions between the United States and Iran have pushed fuel price swings of 17 %–30 % and intermittently disrupted supplies, underscoring the need for localized refining capacity.^[2]

West warned that price spikes and supply interruptions are unlikely to abate soon, reinforcing the case for energy‑security investments in Africa.

Policy Headwinds: CBAM and U.S.–South Africa Friction

Despite corporate enthusiasm, external policy factors complicate the landscape. The United States’ recent trade actions—including unilateral tariffs on certain South African exports—have strained bilateral relations. Simultaneously, the European Union’s Carbon Border Adjustment Mechanism (CBAM), which took effect at the start of 2024, levies a carbon‑based tariff on imports such as steel, fertilizer, iron, hydrogen, aluminum, and cement.^[3] Analyses indicate that most African exporters lack the infrastructure to meet CBAM’s stringent emissions thresholds, potentially limiting their access to EU markets.

U.S. Government Focus on LPG and Clean Cooking

Shiyana Gunasekara, lead on global access to clean cooking for U.S. Energy Secretary Chris Wright, emphasized the administration’s commitment to alleviating energy poverty. Wright has repeatedly highlighted liquefied petroleum gas (LPG) as a scalable, clean‑cooking solution, noting that over one billion Africans still lack modern cooking fuels.^[4] Gunasekara pointed out that the United States, as the world’s largest LPG exporter, sees Africa as a frontier for expanding its export model while addressing a pressing public‑health need.

She added that the Department of Energy is working bilaterally with African partners to identify bottlenecks in LPG supply chains and to target U.S. engagement where it can add measurable value—whether through infrastructure upgrades, regulatory support, or technology transfer.

Calls for African Energy Sovereignty

Arda Executive Secretary Anibor Kragha urged African nations to prioritize energy sovereignty, arguing that reliance on external suppliers leaves the continent vulnerable to global shocks—from pandemics to regional conflicts. Kragha noted that while South Africa remains heavily dependent on coal, broader economic development goals often outweigh immediate energy‑transition pressures, making reliable, locally refined fuels a prerequisite for sustained growth.

Key Takeaways

• U.S. firms such as Honeywell are expanding technical training and lifecycle support to deepen long‑term partnerships in Africa’s refining sector.
• Demographic trends and geopolitical fuel‑price volatility create a strong business case for localized refining and petrochemical capacity.
• Policy headwinds—including U.S.–South Africa trade frictions and the EU’s CBAM—pose challenges that companies must navigate.
• The U.S. government views LPG exports and clean‑cooking initiatives as dual pathways to enhance energy security and address energy poverty.
• African leaders stress the need for proactive planning to achieve energy sovereignty amid shifting global power dynamics.

References

1. United Nations, World Population Prospects 2024, https://population.un.org/wpp/.
2. U.S. Energy Information Administration, “Short‑Term Energy Outlook,” August 2024, https://www.eia.gov/outlooks/steo/.
3. European Commission, “Carbon Border Adjustment Mechanism (CBAM) – Overview,” 2024, https://ec.europa.eu/clima/policies/cbam_en.
4. World Health Organization, “Household air pollution and health,” 2023, https://www.who.int/news-room/fact-sheets/detail/household-air-pollution-and-health.