For the Nigerian economy, at a time like this, it does not only rain, it pours, what with the growing list of the woes plaguing its once lucrative oil and gas industry, a major revenue earning source, with weighty consequence for the budget and wellbeing of the nation’s economy, experts warned at the weekend.
First it had always been vandalism and oil theft on the creeks of the Niger Delta with some official collision, the sources of worry today, the experts said, is the country’s declining exploration and the steady decrease in demand for its crude imports.
A shipping list at the weekend showed that Angola had leveled up with Nigeria in crude exports with 1.74 million barrels per day exports in October. The list suggests that Angola could actually surpass Nigeria’s crude export if nothing is done on the raging crude theft in Nigeria.
This came as Benin republic joined the league of other West African countries, which is independent of Nigeria in c rude production and consumption.
The United States (U.S), which was hitherto the biggest consumer of Nigeria’s oil had slashed importation and consumption of Nigeria’s oil due to the production of shale, while China and Chad Republic have also resolved dispute, which had been holding back the production from some fields in Chad.
Explorationists in Nigeria however declared that bad times are ahead of the country if something urgent is not done to revive its declining exploration activities.
Rising under the aegis of the Nigerian association of Petroleum Explorationists (NAPE), the experts said exploration successes in Ghana, Angola and other African countries will invariably put pressure on Nigeria as a competing destination for oil and gas investments.
In a statement jointly signed by NAPE’s President, George Osahon, President-elect, Adedoja Ojelabi and Publicity Secretary, Irewolede Ayodele, the association said: “Exploration successes in other African countries will invariably put pressure on Nigeria as a competing destination for oil and gas investments.
“It has been stated that successful exploration and development of new plays will require the use of novel integrated technologies, some of which have been instrumental in shoring up the profitability of small fields with low estimated recovery.”
Meanwhile, oil production from the six fastest-growing oil and gas regions in the U.S is projected to increase by 60,000 barrels per day in November from October, the U.S. Energy Information Administration said in a new set of data released on Tuesday.
Information from Daily Independent was used in this report.