The oil and gas (O&G) industry remains a cornerstone of the global economy. It plays a vital role in driving economic growth, providing energy needs, creating employment opportunities, and driving both domestic and international investment. The industry operates through extensive global supply chains (GSCs), which coordinate the development, production, and distribution of goods and services across multiple countries. These interconnected systems are inherently complex and dynamic, often subject to disruptions caused by geopolitical tensions, market volatility, environmental factors, and logistical constraints. Because of this interconnectedness, disruptions in any part of the chain can have widespread impacts on the flow of materials, information, and capital.
In South Africa, the O&G industry is a critical driver of economic growth, contributing substantially to national output, job creation, and industrial activity. The O&G industry underpins essential sectors such as transport, production and manufacturing. However, in recent years, the South African O&G supply chain has been increasingly vulnerable to both domestic and global disruptions. Factors such as the COVID-19 pandemic, persistent electricity shortages, civil unrest, and international conflicts have severely affected production, distribution, and overall supply chain performance. Load shedding, in particular, has caused operational setbacks, financial losses, increased safety risks, and rising costs, which have further constrained the industry’s productivity. These challenges have also had ripple effects on essential public services and infrastructure, including healthcare, education, telecommunications, and water supply systems, revealing the broader socio-economic implications of supply chain instability.
In addition to internal constraints, external pressures from global energy markets have intensified the sector’s vulnerabilities. South Africa’s growing dependence on imported fuels has exposed it to fluctuating international prices, logistical challenges, and supply uncertainties. The decline in domestic refining capacity, limited technological advancement, inadequate investment, and regulatory inefficiencies have further weakened the country’s energy resilience. Rising operational costs, increasing shipping expenses, and labour market constraints have compounded these issues, leading to reduced competitiveness and a decline in investor confidence. Collectively, these factors create a challenging environment for both industry players and...
- Resilient oil and gas supply chains in South Africa : identifying disruptions and strategies
- Nomonde Sgogo
- Hemisha Makan
- University of Johannesburg; MCom
- MCom, University of Johannesburg
- 9964906807691
- University of Johannesburg
- University of Johannesburg; Department of Business Management; College of Business & Economics (CBE)
- English
- Thesis