Power
May 3, 2023 No Comments

TotalEnergies sues Greenpeace over emissions report

The civil complaint, served on April 28, seeks a ruling that the November publication contains “false and misleading information,” a judicial order to withdraw the publication and cease all references to it under penalty of 2000 euros in fines per day, plus 1 symbolic euro in damages.

A first procedural hearing will take place on Sept. 7 at the Paris judicial court to set a calendar for arguments, though it will be several months before a judge begins to rule on the merits of the case.

Greenpeace and Factor X accused the oil major of having emitted about 1.64 billion tonnes of carbon dioxide equivalent in 2019 but only disclosing 455 million tonnes in public statements.

TotalEnergies countered that the report double-counted emissions by knowingly using dubious methodologies, which were morally prejudicial to the listed company.

“This is a question of principle, and a judgment from the court will not prevent Greenpeace from continuing to criticize us and our climate strategy if they wish, but will remind them that public debate on issues with such high stakes concerning a listed company require rigor and good faith,” a TotalEnergies spokesperson said.

The TotalEnergies spokesperson added that the company’s main goal was to have the court recognize the knowingly false nature of the report, since the Factor-X firm behind the math presents itself as an expert in the field of carbon emissions accounting.

Factor-X could not immediately be reached for comment.

Greenpeace said the lawsuit was an attempt to muzzle the NGO ahead of the May 26 TotalEnergies general assembly, where activist shareholders will push for stricter climate commitments and environmental groups have called to block entry in protest of the company’s global oil and gas projects.

“TotalEnergies wants to drag Greenpeace through a long legal process … erase our reports and prevent us from denouncing their misleading and climate-killing practices,” said Greenpeace France Director Jean-François Julliard. “We will continue to lift the veil on their responsibility in global warming.”

Uncategorized
April 25, 2023 No Comments

OPEC+ cuts risk oil supply deficit, threaten economic recovery -IEA

LONDON, April 14 (Reuters) – Output cuts announced by OPEC+ producers risk exacerbating an oil supply deficit expected in the second half of the year and could hurt consumers and global economic recovery, the International Energy Agency (IEA) said on Friday.

OPEC+ and the IEA have jousted in recent months over their outlooks for global oil supply and demand.

Consumer countries represented by the IEA have argued that tightening supplies drive up prices and could threaten a recession, while OPEC+ blames Western monetary policy for market volatility and inflation which undercuts the value of its oil.

“Oil market balances were already set to tighten in the second half of 2023, with the potential for a substantial supply deficit to emerge,” the IEA said in its monthly oil report.

“The latest cuts risk exacerbating those strains, pushing both crude and product prices higher. Consumers currently under siege from inflation will suffer even more from higher prices.”

The IEA saw 2023 demand at a record 101.9 million barrels per day, up 2 million barrels per day on last year and on par with its prediction last month.

OPEC+ called its surprise cut decision a “precautionary measure” and in a monthly oil report published on Thursday OPEC cited downside risks to summer oil demand from high stock levels and economic challenges.

The IEA said it expected global oil supply to fall by 400,000 bpd by the end of the year citing an expected production increase of 1 million bpd from outside of OPEC+ beginning in March versus a 1.4 million bpd decline from the producers bloc.

Gains outside the producer alliance were due to be led by the United States and Brazil, with Norway and Ecuador also making significant contributions.

Rising global oil stocks may have influenced the OPEC+ decision, the IEA added, noting the Organisation for Economic Cooperation and Development (OECD) industry stocks in January hit their highest level since July 2021 at 2.83 billion barrels.

Meanwhile Russian oil exports in March hit their highest levels since April 2020 on robust oil product flows, the IEA said, despite a seaborne import ban from the European Union and a price cap sanctions policy spearheaded by the United States.

Russia’s March revenue rose by $1 billion month on month to $12.7 billion, but was still 43% lower than a year earlier partly due to capped prices on its seaborne oil exports.

Uncategorized
April 25, 2023 No Comments

Nigeria’s Oil And Gas Sector Hit By $21 Billion In Divestments

The oil and gas production in Nigeria is being severely impacted by the Western ESG strategies that are forcing IOCs to reconsider their upstream and downstream operations worldwide, resulting in major reshuffling and divestments of assets. Nigeria, one of OPEC’s leading oil producers, has already seen $21 billion worth of assets divested, putting its future in jeopardy. In contrast to Western NGO’s strategies, NGOs in Nigeria, such as “We, the People,” are calling for a government moratorium to prevent further divestments in the Niger Delta.

The NGO is concerned that if oil companies are allowed to divest without cleaning up the entire Niger Delta region, the environmental issues in the area will never be addressed. Despite the ongoing divestments, African nations, including Nigeria, need to be given time to transition to using gas as their transition fuel, according to Ainojie Alex Irune, CEO of Oando Energy Resources. More investments and production are needed to counter expected demand growth in the future on the continent. In addition, NJ Ayuk, Executive Chairman of Africa Energy Chamber, believes that the continent needs to leverage its immediate resources to eliminate energy poverty, as Africa is a gas continent.

The regulatory uncertainty of Nigeria’s oil and gas sector prior to the enactment of the Petroleum Industry Act 2021 and ESG-related fossil fuel divestment schemes forced by energy transition and COVID-19 are the main reasons for the divestments, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Nigeria’s yearly capital expenditure in the upstream arm of the oil sector decreased by over 70% within a period of eight years. The country’s total annual upstream capital expenditure decreased by 74% from $27 billion in 2014 to less than $6 billion in 2022, and competition from regional peers has led to a decrease in the proportion of the overall upstream investment attracted by

However, there is still hope, as Nigeria is showing increased natural gas reserves and oil reserves in the short term. The NUPRC has reported that Nigeria’s oil and condensate reserves are 31.060 billion barrels for oil and 5.906 billion barrels for condensate. Associated gas reserves are 102.32 trillion cubic feet, non-associated gas reserves are 106.51 trillion cubic feet.

The future of Nigeria and Sub-Saharan Africa is at stake, and according to a growing amount of Southern leaders and analysts, it is time to reassess strategies and policies pushed by the North without delay. The divestment strategies being pushed by Western climate change and IPCC/IEA reports are not only controversial but now counterproductive for most developing countries.

Uncategorized
April 25, 2023 No Comments

Global Oil & Gas Market Rises To $7bn In 2023

The global oil and gas market reportedly grew from $6,989.65 billion in 2022 to $7,330.80 billion in 2023 at a compound annual growth rate (CAGR) of 4.9 per cent.

The Russia-Ukraine war however disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.

The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe.

The oil and gas market is expected to grow to $8,670.91 billion in 2027 at a CAGR of 4.3 per cent.
The oil and gas market consists of sales of crude oil, natural gas, refined petroleum products and asphalt, lubricating oil and grease.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.

Oil and Gas extraction is the exploration and production of petroleum and natural gas from wells.
Asia-Pacific was the largest region in the oil and gas market in 2022.North America was the second largest region in the oil and gas market.

The regions covered in the oil and gas market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The main types are oil & gas upstream activities, oil downstream products.Oil and gas upstream activities include exploration activities, such as creating geological surveys and obtaining land rights and production activities, such as onshore and offshore drilling.
The various drilling types include offshore; onshore that are used for residential, commercial, institutions and other applications.

Low interest rates in most developed countries will positively impact the oil and gas industry during the forecast period.For instance, in March 2020, UK decreased the interest rates to 0,1 per cent which was the lowest ever.

Furthermore, other Central Banks of countries such as North Macedonia, South Africa, Malaysia, Kenya, Argentina, Ukraine, Sri Lanka, and Azerbaijan, as well as Turkey also decreased their interest rates in 2020.

Oil price volatility is likely to have a negative impact on the market as significant decline and increase in oil prices negatively impacts the government and consumer spending.

The decline in oil prices is having a negative impact on government spending in countries such as, Nigeria, Saudi Arabia and the UAE (United Arab Emirates) which are largely dependent on revenues generated through crude oil exports; whereas significant increase in oil prices had resulted in rising inflation, current account deficit and fiscal deficit in countries such as; India and China, which predominantly import oil.

For instance, the Saudi government is expected to cut down its spending from 1.05 trillion riyals ($280 billion) in 2019 to 1.02 trillion riyals ($270 billion) in 2020, to 955 billion riyals ($255 billion) by 2022, due to significant decline in revenues generated from oil exports, thereby, affecting the market. This high volatility in oil prices is expected to negatively impact the market going forward.

Major companies in the oil and gas industry are looking into big data analytics and artificial intelligence (AI) to enhance decisions making abilities and thus drive profits.

Major companies in the oil and gas market include; Royal Dutch Shell, BP plc, Saudi Aramco, Exxon Mobil, Gazprom PAO, Chevron, Iraq Ministry of Oil, PJSC Lukoil, Total SA, and Rosneft.

The companies gather huge amounts of raw data relating to the working of refineries, pipelines and other infrastructure through a large number of sensors placed across the oil rig.

Using big data analytics, the companies can detect patterns which can allow them to quickly react to unwanted changes or potential defects, thus saving costs.AI allows the companies to take better drilling and operational decisions.
Companies such as ExxonMobil and Shell have been increasingly investing in AI technology to have a centralized method of data management and support data integration across multiple applications.

Other companies such as Sinopec, a Chinese chemical and petroleum corporation, has announced its decision to construct 10 intelligent centers to help in reducing operation costs by 20 per cent.

This oil and gas market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry

The countries covered in the oil and gas market are, Nigeria, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.

News Power
September 28, 2022 No Comments

Hungary says Russia to deliver more extra gas

Hungary said Wednesday that Russian energy giant Gazprom will further increase natural gas deliveries to the EU member in September and October.

The announcement by Hungarian Foreign Minister Peter Szijjarto comes as Moscow has reduced or halted deliveries to most European nations which have slapped sanctions on Russia over its invasion of Ukraine, sending both gas and energy prices soaring.

Following a July visit to Moscow by Szijjarto, Gazprom supplied Hungary with an additional volume of 2.6 million cubic metres per day in August “above the already contracted quantities”.

Now “an agreement has been reached” with Gazprom for additional supplies in September and October, said Szijjarto in Prague after a meeting of EU counterparts.

The additional volume “is now increased to 5.8 million cubic metres (per day) from September 1st,” he said in a video posted on his Facebook page.

Like in August, the gas will arrive via the TurkStream pipeline which passes through Turkey, Bulgaria, and Serbia.

The increase further bolsters Hungary’s energy supply security and means that Hungary will not have to introduce supply restrictions due to lack of gas, he added.

“Hungary’s energy supply is safe,” said government spokesperson Zoltan Kovacs in a Twitter message after Wednesday’s announcement.

The agreement follows the start Wednesday by Gazprom of a three-day suspension of gas deliveries to Germany via a major pipeline in the latest in a series of halts or reductions of supplies to European countries.

Prices have soared and EU nations are adopting measures to reduce gas consumption amid concerns of shortages this coming winter that could force rationing supplies to industrial customers.

Since Russia’s invasion of Ukraine Budapest has sought to hold a broadly neutral stance amid accusations by some EU allies of a pro-Russian tilt.

Hungary, which largely depends on Russian oil and gas, has dismissed the idea of any EU sanctions on Russian gas.

It also secured an exemption from EU sanctions on Russian crude oil imports via pipelines after Prime Minister Viktor Orban said it would be like a “nuclear bomb dropped on the economy”.

News Uncategorized
September 28, 2022 No Comments

Russia has halted gas deliveries to Germany

Russia has halted gas deliveries to Germany via a key pipeline for an indefinite period after saying Friday it had found problems in a key piece of equipment, a development that will worsen Europe’s energy crisis.

Russian gas giant Gazprom said Friday that the Nord Stream pipeline due to reopen at the weekend would remain shut until a turbine is repaired.

In a statement, Gazprom indicated it had discovered “oil leaks” in a turbine during a planned three-day maintenance operation.

Gazprom added that “until it is repaired… the transport of gas via Nord Stream is completely suspended”.

Resumption of deliveries via the pipeline which runs from near St Petersburg to Germany under the Baltic Sea had been due to resume on Saturday.

Gazprom said it had discovered the problems while carrying out maintenance with representatives of Siemens, which manufactured the turbine in a compressor station that pushes gas through the pipeline.

On its Telegram page, it published a picture of cables covered in a brown liquid.

Earlier in the day, the Kremlin warned the future operation of the Nord Stream pipeline, one of Gazprom’s major supply routes, was at risk due to a lack of spare parts.

“There are no technical reserves, only one turbine is working,” Kremlin spokesman Dmitry Peskov told reporters.

“So the reliability of the operation, of the whole system, is at risk,” he said, adding that it was “not through the fault” of Russian energy giant Gazprom.

Following the imposition of economic sanctions over the Kremlin’s invasion of Ukraine, Russia has reduced or halted supplies to different European nations, causing energy prices to soar.

The Kremlin has blamed the reduction of supplies via Nord Stream on European sanctions which it says have blocked the return of a Siemens turbine that had been undergoing repairs in Canada.

Germany, which is where the turbine is located now, has said Moscow is blocking the return of the critical piece of equipment.

Berlin has previously accused Moscow of using energy as a weapon.

The announcement by Gazprom comes the same day as the G7 nations said they would work to quickly implement a price cap on Russian oil exports, a move which would starve the Kremlin of critical revenue for its war effort.

Gazprom also announced the suspension of gas supplies to France’s main provider Engie from Thursday after it failed to pay for all deliveries made in July.

– ‘Much better position’ –
As winter approaches, European nations have been seeking to completely fill their gas reserves, secure alternative supplies, and put into place plans to reduce consumption.

A long-term halt to Russian gas supplies would complicate efforts by some nations to avoid shortages and rationing, however.

Germany said Friday its gas supplies were secure despite the halt to deliveries via Nord Stream.

“The situation on the gas market is tense, but the security of supply is guaranteed,” a spokeswoman for the economy ministry said in a statement.

The spokeswoman did not comment on the “substance” of Gazprom’s announcement earlier Friday but said Germany had “already seen Russia’s unreliability in the past few weeks”.

German officials have in recent times struck a more positive tone about the coming winter.

Before the latest shutdown, Chancellor Olaf Scholz said Germany was now “in a much better position” in terms of energy security, having achieved its gas storage targets far sooner than expected.

Europe as a whole has also been pushing ahead with filling its gas storage tanks, while fears over throttled supplies have driven companies to slash their energy usage.

Germany’s industry consumed 21.3 percent less gas in July than the average for the month from 2018 to 2021, said the Federal Network Agency.

Agency chief Klaus Mueller has said such pre-emptive action “could save Germany from a gas emergency this winter”.

Europe as a bloc meanwhile has been preparing to take emergency action to reform the electricity market in order to bring galloping prices under control.

Fear of shortages of natural gas has driven futures contracts for electricity in France and Germany to record levels.

European consumers are also bracing for huge power bills as utilities pass on their higher energy costs.

News
September 28, 2022 No Comments

Osinbajo: Why Nigeria should benefit more from its gas reserves

The use of gas as a transition fuel will not only help in stemming deforestation but advance Nigeria’s broader development goals, the Vice President, Prof. Yemi Osinbajo has said.

Stating that the country has one of the largest gas reserves in the world, he believes other developing countries will also benefit from the adoption of gas as a transition fuel.

Osinbajo stated this on Tuesday night when he received the U.S. Special Presidential Envoy on Climate Change, John Kerry, at the Presidential Villa in Abuja.

Kerry, who was on a working visit to Nigeria, had met with President Muhammadu Buhari prior to his meeting with Professor Osinbajo, the Vice President’s spokesman, Laolu Akande, said in a statement on Wednesday.

The Vice President, at the meeting with Kerry and the US delegation, highlighted the need for Nigeria to continue the exploration and use of gas as a way of arresting deforestation, transiting away from dirtier fuels like diesel, kerosene, and petrol, while at the same time ensuring that the country has the necessary energy baseload for industrialisation.

He pointed out that Nigeria has one of the largest gas reserves in the world and should benefit from its exploitation, and highlighted the significance of Nigeria’s Energy Transition Plan, which is the first in Africa.

Professor Osinbajo had discussed the Energy Transition Plan during his recent visit to Washington D.C., where he met with his American counterpart, Kamala Harris, at the White House, among other top US government officials.

Before the recent US trip, the Federal Government had launched the Energy Transition Plan at a global virtual event.

In addition to a review of the Energy Transition Plan, including a discussion about its implementation, both the Vice President and Kerry also discussed the issues of renewable energy sources and the global transition.

In his remarks, the US envoy praised the plan and the efforts already being made in Nigeria to step up the use of renewables, especially solar and hydropower, as major components of the energy mix.

While acknowledging that Nigeria ought to benefit from its gas reserves, Kerry urged an even more rapid adoption of renewables, especially electric vehicles which are certainly the next wave in auto manufacturing.

He observed that the technology of renewables keeps improving daily, adding that batteries are already in production which last far more than those that are now on the market.

Upon a request by the Vice President, the Special Envoy promised to assist Nigeria with the necessary expertise to scientifically determine the most appropriate energy mix that would move the country toward the goal of energy for all by 2030 and net zero carbon emissions by 2060, without compromising the country’s energy security.

He also affirmed the readiness of the US government to assist Nigeria in a bilateral partnership to realise its climate change adaptation and resilience capacity, thereby consolidating the nation’s place as a model for other countries on the planet.

Kerry said he looked forward to Nigeria presenting an inspiring position, which would no doubt attract all necessary global support at the upcoming COP 27 in Egypt later in the year.

He was accompanied by other US officials, including the American Ambassador to Nigeria, Ms Mary Beth Leonard.

Uncategorized
September 20, 2022 No Comments

Nigeria to produce additional 255,000 bpd

Nigeria is set to produce additional 225,000 barrels per day, bpd, as Shell Nigeria Exploration and Production Company Limited, SNEPCo, has completed the 2022 Turnaround Maintenance, TAM, of the Bonga floating production storage and offloading, FPSO.

The FPSO was shut down on October 18, 2022, due to the statutory inspections, recertifications and other critical asset integrity restoration activities.

In a statement, yesterday, the company confirmed that the TAM was completed on November 9, 2022, adding the commissioning and start-up activities are currently in progress.

It stated: SNEPCo is pleased to announce that the 2022 TAM of the Bonga floating production storage and offloading vessel (FPSO) has been completed.

“The 225kbopd capacity FPSO was shut down on October 18, 2022,  to carry out statutory inspections, recertifications and other critical asset integrity restoration activities.

“The 2022 TAM which was originally planned for 30 days was completed in 22 days on November 9, 2022,  thanks to the excellent front-end planning and flawless execution.

“Commissioning and start-up activities are in progress and will culminate in ramp up of oil and gas production in the coming days.”

However, in its latest report obtained by Vanguard, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, said that Nigeria’s dwindling average oil output, including condensate, dropped Year-on-Year, YoY, by 7.4 per cent to 1.37 million barrels per day, mb/d in the first 10 months (January – October) 2022, from 1.48 mb/d in the corresponding period of 2021.

This showed a shortfall of 317,940 barrels when juxtaposed against the 1.69 mb/d, which the 2023 budget was based on at $70 per

News Power
September 20, 2022 No Comments

NNPC, TotalEnergies commission model school project in Makurdi

The Nigerian National Petroleum Company Limited, NNPCL, TotalEnergies, operators of OML 130 and partners,SAPETRO, CNOOC & PRIME 130, have constructed and commissioned a model secondary school project at Government College, Makurdi in Benue State as part of their corporate social responsibilities to different communities in Nigeria.

The two floors model secondary school sits on 2,500m2 and is expected to provide the students access to modern-day learning and science experimentation tools.

The school facility is powered by an integrated power supply system consisting of a 35kva solar power generating system, and one 50kva soundproof generator to ensure continuous power supply.

In his welcome address, the Chief Upstream Investment Officer of the NNPC Upstream Investment Management Services, Mr. Bala Wunti, who was represented by Mrs Bunmi Lawson said that the project was part of efforts to mitigate various identified gaps.

He noted that the projects aligned with sustainable development goals, adding that the partners would continue to champion the implementation of SDGs.

“These projects were borne out of the need to mitigate the various identified gaps in line with the relevant Sustainable Development Goals (SDGs). We will continue to consistently champion the implementation of Sustainable Community Development projects that will positively impact the lives of the citizens of this Country.”

Managing Director of TotalEnergies EP Nigeria Limited, Mike Sangster, who was represented by Mr. Lucky Deekor, revealed that in line with his company’s commitment to promoting youth education, TotalEnergies believe that the school project will provide students access to modern-day learning, science experimentation tools and ignite their interest in the study of the STEM courses.

Giving an overview of the project, Sangster said that the school project includes a well-designed administrative block with furnished offices, a sick bay, a first aid room and storage facilities.

“The project we are commissioning today includes all the necessary components for a modern school. These include a well-designed administrative block with 4 fully furnished offices, a sick bay, and a first aid room with all its appurtenances and storage facilities.

“Among other great features, the main school block has 2 floors, 10 offices for teachers and technical rooms, 12 furnished classrooms, 5 cutting-edge science laboratories, two libraries and 1 fully equipped ICT laboratory.

The principal of Government College, Makurdi, Mrs. Aumbur Agena, thanked Total Energies and all other partners for their support in the building of the facility, adding that the intervention to build the facility will provide a better learning environment for the students.

“I thank NNPCL, TotalEnergies and their partners for finding the school worthy to be part of the CSR project. Their commitment to the completion of the project is commendable. The project will solve one of our big problems: providing a better learning environment for the students. I also appeal to the government of Benue state to provide us with a school bus for easy student commute.”

News Production
September 20, 2022 No Comments

2023 budget threatened, as Nigeria’s crude oil output drops 7.4% to 1.37mb/d

Nigeria’s dwindling average oil output, including condensate, dropped Year-on-Year, YoY, by 7.4 per cent to 1.37 million barrels per day, mb/d in the first 10 months (January – October) 2022, from 1.48 mb/d in the corresponding period of 2021.

This showed a shortfall of 317,940 barrels when juxtaposed against the 1.69 mb/d which the 2023 budget was based on at $70 per barrel.

However, on Month-on-Month, MoM, the average oil output increased by 7.8 per cent to 1.23 mb/d in October 2022, from 1.14 mb/d, recorded in the preceding month of September 2022.

Oil theft, others

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, which disclosed this in its monthly Oil Production Status Reports, obtained by Vanguard, weekend, did not specify the cause of the trend.

But checks by Vanguard, yesterday, attributed it to prolonged pipeline vandalism, oil theft, and illegal refining in the Niger Delta.

It indicated that pipeline vandalism, oil theft and illegal refining would still continue next year, despite the efforts of stakeholders, especially the government and oil companies, to tackle them.

Case of Shell

In its briefing notes obtained by Vanguard, Shell, the biggest International Oil Company, IoC, in Nigeria, stated: “Shell companies in Nigeria have a track record of strong production. But in 2021, the combined production from the SPDC JV and SNEPCo (Bonga) fell to 493,000 barrels of oil equivalent per day from 614,000 in 2020.

“The SPDC JV produced 383,000 barrels of oil equivalent in 2021, compared with 497,000 barrels of oil equivalent in 2020. The fall in output was largely as a result of curtailed oil production because of heightened security issues, such as crude oil theft and illegal oil refining.

”Production numbers were also down as a result of divestment action, including the sale of SPDC’s 30% interest in OML 17 for $533 million.

“In the last quarter of 2021, crude oil theft from pipelines across the region increased ostensibly as a result of rising oil prices, which made the activity more profitable. Security risks have heightened and production in some areas has been put on hold.

”The situation is impacting operators across the Niger Delta. The Nigerian National Petroleum Corporation, NNPC, has reported that crude thefts in 2021 reached 200,000 barrels per day – a quarter of onshore production.”

Oil market

The checks also showed that although the Organisation of Petroleum Exporting Countries, OPEC, interventions would make a positive impact, the global oil market would continue to record instability in 2023 and beyond, thereby impacting negatively the economy of nations, including Nigeria.

In its October 2022 Monthly Oil Market Report, MOMR, obtained by Vanguard, OPEC painted a picture of an uncertain oil market when it stated: “For 2023, world oil demand growth is revised down to stand at about 2.3 mb/d.

“Uncertainty about the geopolitical situation remains high, and there is potential for further US shale liquid production.”

Experts

However, commenting on the development, the National President of Oil and Gas Service providers Association of Nigeria, OGSPAN, Colman Obasi, said: “The government and other stakeholders have not done enough to address the various issues currently affecting the nation’s oil production.

”A lot can still be done, including the use of modern technologies, to monitor the nation’s oil and gas assets in the Niger Delta.”

Obasi, who attributed the vices partly to massive unemployment and desperation on the part of the youth to make a living, said: “If concerted efforts were made to industrialise Niger Delta, there would probably be no crude oil theft and devastation of the region. Oil theft has been with us for decades and seems to be gaining momentum.”

Similarly, Executive Director, Emmanuel Egbogah Foundation, Prof. Wunmi Iledare, said: “It seems the price of crude is demand determined. The likelihood to attain and sustain that output in 2023 is less likely. At best, that output may even be the potential because of insecurity, divestment, and onshore basin maturity.”

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