South Africa is often seen as undervaluing its oil and gas resources, but investments in this sector could reach over R200 billion in the next few years. These investments could help the country address its energy crisis and stimulate economic growth. However, South Africa's energy environment is highly litigious, which hinders the development of these resources. To address this, the Upstream Petroleum Resources Development Bill, which aims to bring regulatory certainty and reduce litigation, is currently under consideration.

The bill seeks to facilitate the orderly development of the country's petroleum resources. Public consultations on the bill have been completed, and it is expected to be finalized next year. South Africa also requires additional refinery capacity, as the PetroSA facility in Mossel Bay is currently idle. Plans for a refinery refurbishment partnership are expected to be announced by the end of the financial year, with recommissioning within two years.

Gas has been classified as an appropriate resource in South Africa's just energy transition. The recent discovery of 4.9 trillion cubic feet of gas near Secunda is significant for several of Eskom's coal-fired power stations in Mpumalanga. This discovery is near the Rompco pipeline, which can transport gas to these power stations. As an engineer, Ayanda Noah, Chair of the Central Energy Fund, emphasizes the need for gas to stabilize the energy system alongside renewable sources like wind and solar, nuclear, and clean coal.

South Africa holds substantial oil and gas resources, including 27 billion barrels of oil offshore and 60 trillion cubic feet of gas offshore, as well as an additional 200 trillion cubic feet of gas onshore. Developing these resources could provide energy security, reduce imports, improve the balance of payments, create jobs, and advance climate change goals. The viability of a new refinery on the Cape West Coast is confirmed by oil discoveries in the Orange River basin, which borders South African waters. These finds could underpin the development of a new refinery, reducing import dependence and increasing price control. South Africa may even become an exporter of petroleum products to other African countries based on its available resources.