ENB Publisher Note: This is an outstanding article from Ronald Stein. I have thoroughly enjoyed my podcast interviews with Ronald, and his expertise has always been well-received. He mentions Chris Wright, US Secretary of Energy, and NJ Ayuk, Executive Chairman of the African Energy Chamber, and they have fantastic points about Africa’s needs to be decided by Africans. All three men have been great guests on the podcast several times. Please follow Ronald at American Out Loud.
Oil, coal, and gas are foundational to the global economy, contributing to thousands of products — estimated at over 6,000 — that underpin modern living standards. These fossil fuels drive economic activity by providing energy and raw materials for industries, transportation, and manufacturing, while their derivatives permeate everyday life, from plastics to medicines.
- Electricity came AFTER oil, as ALL electrical generation methods from hydro, coal, natural gas, nuclear, wind, and solar are ALL built with the products, components, and equipment that are made from the oil derivatives manufactured from crude oil.
- All EV’s, solar panels, and wind turbines are also built with the products, components, and equipment that are made from the oil derivatives manufactured from crude oil.
- All transportation fuels for cars, trucks, merchant ships, aircraft, and military are made from refined crude oil.
- Getting rid of crude oil would eliminate electricity and all the products that need electricity to operate, and ground all transportation!
Today, we have more than 50,000 merchant ships, more than 20,000 commercial aircraft, and more than 50,000 military aircraft that use fuels manufactured from crude oil. The fuels to move the heavy-weight and long-range needs of jets moving people and products, the merchant ships for global trade flows, and the military and space programs are also dependent on what can be manufactured from crude oil.
The IEA Oil Market Report – March 2025 forecasts global oil demand reaching 103.9 million barrels per day (mb/d) in 2025, up 1 mb/d from 2024, with non-combusted uses (e.g., plastics, chemicals) growing from 15 mb/d in 2022 to 20 mb/d by 2050 (BP).
US Energy Secretary Chris Wright affirmed that Africa must be free to harness its vast energy resources without interference. NJ Ayuk, Executive Chairman of the African Energy Chamber, says Secretary Wright’s message is a long-overdue recognition that Africa needs investment, not interference. “Africa’s energy future must be decided in Africa, not dictated by foreign governments pushing policies that undermine our economic potential. The AEC welcomes this shift in U.S. policy and calls on African leaders to capitalize on this moment by accelerating oil and gas development, creating jobs, and driving industrialization.”
Contributions to Living Standards
These products profoundly enhance living standards by powering modern infrastructure, mobility, and health. Transportation fuels the logistics that deliver EVERYTHING that people need to live productive and prosperous lives. The IEA Oil Market Report – March 2025 notes Asia, led by China, accounts for 60% of 2025 demand growth, driven by petrochemical feedstocks critical for plastics and fertilizers.
Plastics improve food preservation and healthcare affordability (e.g., medical devices 30-50% cheaper than alternatives), while gas-derived fertilizers boost crop yields by 50%, feeding half the world’s population. Coal’s role in steel and cement supports urban housing for 4 billion people, and synthetic fabrics (oil-based) cut clothing costs by 20-30%, benefiting billions. Pharmaceuticals from petrochemicals have historically extended life expectancy, and lubricants enhance industrial efficiency, stabilizing supply chains.
Since 1900, fossil fuel products have doubled living standards by enabling industrialization and access to goods.
South Africa’s Energy Mix
The green factions are becoming louder in South Africa as their funding dries up from sources such as USAID and the JET. China is laughing all the way to the bank, building 95 GW of new coal and manufacturing subsidized renewables using products made from oil and ethically questionable rare earth minerals.
This while President Donald Trump has vowed to reboot the US coal industry to counter the economic advantage China has gained: “After years of being held captive by Environmental Extremists, Lunatics, Radicals, and Thugs, allowing other Countries, in particular China, to gain tremendous Economic advantage over us by opening up hundreds of all Coal Fire Power Plants, I am authorizing my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL,” President Trump wrote on social media platform Truth Social.
Equally concerning is the refining capability and gas cliff situation in South Africa, as Sasol projects the LNG supply from Mozambique to run dry by 2027. Sasol’s CTL process exemplifies coal’s added value, producing synthetic fuels and chemicals, contributing over $10 billion yearly to South Africa’s economy, and supporting 30,000 jobs. Why would the country not exploit the opportunity to make use of its rich coal supplies and further reduce its reliance on imported refined products?
Local petrol, diesel, jet fuel, and gas (LNG) prices are exacerbated by USD/ZAR exchange volatility, and drastic price increases in refined fuel products will immediately put inflationary pressure on consumers. South Africa currently only has two operating refineries left, Astron in the Western Cape and Natref in Gauteng (Interior). The rest have been mothballed or shut.
The South African state-owned utility, Eskom, with its coal fleet, earned the Best Power Company in the World in 2001, but has since been hollowed out by failed policies, corruption, and mismanagement. Coal still provides over 80% of South Africa’s energy supply, but it has been under extreme pressure from the EU and other pro-renewables organizations to transition to purely renewables that can only generate electricity but CANNOT make any products or fuels. This is simply not an option for South Africa. It will lead to the continuation of the rolling blackouts that the country has been facing, despite 14 years of an extensive Renewable Independent Power Producer program that has cost billions of dollars.
The so-called “renewables” ONLY generate electricity but CANNOT make anything. Thus, the country needs all the products and transportation fuels that renewables CANNOT provide, along with Nuclear Power stations. This is the only viable option that will lead to a fair and equitable chance to prosperity for the 62 million in South Africa and the 1.2 billion people living in Sub-Saharan Africa who rely on essential goods and services.
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