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Nigeria Can Achieve 40bn Barrels Oil Reserves by 2020 – NAPE

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  • Nigeria Can Achieve 40bn Barrels Oil Reserves by 2020

The Nigerian Association of Petroleum Explorationists on Wednesday said that Federal Government has the capacity to achieved 40 billion barrels oil reserves projection target by 2020.

The association’s President, Mr. Abiodun Adesanya, gave the assurance in Lagos against the backdrop of government’s plans to boost oil production.

Adesanya said that government Economic Recovery Plan and Growth Plan targets to restore oil production to 2.2 mbpd in 2017, increase it to 2.5 mbpd by 2020 is achievable if monitored adequately.

He, however, believed that Nigerian need to increase exploration activities in order to achieve that lofty target.

The NAPE president said that Federal Government had targeted 40 billion barrels reserves and three million barrels per day production by the year 2020.

According to him, the Nigerian oil and gas industry is currently experiencing declining reserves owing to reduced exploration due to militancy, a situation that has caused much concern.

He said that successful exploration and development of new oil fields would require the use of novel integrated technologies.

Adesanya said that government was committed to meet the 40 billion barrel oil reserve target, but decried the rate of crude oil theft and pipeline vandalism in the country.

He said that it was in the best interest of the government to increase production.

He said, “It is for all of us as stakeholders to work together, minimize the distraction and face the business of boosting the reserves production to 40 billion barrels.”

The association boss said that exploration successes in other African countries had put pressure on Nigeria as a competing destination for oil and gas investments.

He stressed the urgent need to examine the effectiveness of existing policies to drive growth in the oil and gas industry as well as the development of roadmaps and new policy initiatives.

Adesanya said the association was committed to providing other learning opportunities, including short courses and field trips to the carbonate sedimentation areas in the Eastern Dahomey Basin in South West Nigeria.

On the Petroleum Industry Bill, the NAPE president said the association would continue to advise the government on the need to pass the bill into law.

He said, “Stakeholders believe that as exploration and production experts in the oil and gas industry, NAPE should have made greater impact to ensure the passage of the bill into law.

“The only thing the body can do is to advice and cannot force the government to do what they have to do.

“Passage of the bill by the National Assembly would addressed all aspect of the petroleum industry’s challenges and attract investment.”

Federal Government on March 7 released its Economic Recovery and Growth Plan with a view to restoring macroeconomic stability and unleashing various sectors towards achieving the nation’s full economic potentials.

The ERGP’s core vision of the plan is sustained inclusive growth through structural economic transformation with emphasis on improving both public and private sector efficiency in order to increase national productivity and achieve sustainable diversification of production.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Decline for Third Consecutive Day on Weaker Economic Data and Inventory Concerns

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Oil prices extended their decline for the third consecutive day on Wednesday as concerns over weaker economic data and increasing commercial inventories in the United States weighed on oil outlook.

Brent oil, against which Nigerian oil is priced, dropped by 51 cents to $89.51 per barrel, while U.S. West Texas Intermediate crude oil fell by 41 cents to $84.95 a barrel.

The softening of oil prices this week reflects the impact of economic headwinds on global demand, dampening the gains typically seen from geopolitical tensions.

Market observers are closely monitoring how Israel might respond to Iran’s recent attack, though analysts suggest that this event may not significantly affect Iran’s oil exports.

John Evans, an oil broker at PVM, remarked on the situation, noting that oil prices are readjusting after factoring in a “war premium” and facing setbacks in hopes for interest rate cuts.

The anticipation for interest rate cuts received a blow as top U.S. Federal Reserve officials, including Chair Jerome Powell, refrained from providing guidance on the timing of such cuts. This dashed investors’ expectations for significant reductions in borrowing costs this year.

Similarly, Britain’s slower-than-expected inflation rate in March hinted at a delay in the Bank of England’s rate cut, while inflation across the euro zone suggested a potential rate cut by the European Central Bank in June.

Meanwhile, concerns about U.S. crude inventories persist, with a Reuters poll indicating a rise of about 1.4 million barrels last week. Official data from the Energy Information Administration is awaited, scheduled for release on Wednesday.

Adding to the mix, Tengizchevroil announced plans for maintenance at one of six production trains at the Tengiz oilfield in Kazakhstan in May, further influencing market sentiment.

As the oil market navigates through a landscape of economic indicators and geopolitical events, investors remain vigilant for cues that could dictate future price movements.

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Commodities

Dangote Refinery Cuts Diesel Price to ₦1,000 Amid Economic Boost

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Aliko Dangote - Investors King

Dangote Petroleum Refinery has reduced the price of diesel from ₦1200 to ₦1,000 per litre.

This price adjustment is in response to the demand of oil marketers, who last week clamoured for a lower price.

Just three weeks ago, the refinery had already made waves by lowering the price of diesel to ₦1,200 per litre, a 30% reduction from the previous market price of around ₦1,600 per litre.

Now, with the latest reduction to ₦1,000 per litre, Dangote Refinery is demonstrating its commitment to providing accessible and affordable fuel to consumers across the country.

This move is expected to have far-reaching implications for Nigeria’s economy, particularly in tackling high inflation rates and promoting economic stability.

Aliko Dangote, Africa’s richest man and the owner of the refinery, expressed confidence that the reduction in diesel prices would contribute to a drop in inflation, offering hope for improved economic conditions.

Dangote stated that the Nigerian people have demonstrated patience amidst economic challenges, and he believes that this reduction in diesel prices is a step in the right direction.

He pointed out the aggressive devaluation of the naira, which has significantly impacted the country’s economy, and sees the price reduction as a positive development that will benefit Nigerians.

With this latest move, Dangote Refinery is not only reshaping the fuel market but also reaffirming its commitment to driving positive change and progress in Nigeria.

The reduction in diesel prices is expected to provide relief to consumers, businesses, and various sectors of the economy, paving the way for a brighter and more prosperous future.

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IEA Cuts 2024 Oil Demand Growth Forecast by 100,000 Barrels per Day

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The International Energy Agency (IEA) has reduced its forecast for global oil demand growth in 2024 by 100,000 barrels per day (bpd).

The agency cited a sluggish start to the year in developed economies as a key factor contributing to the downward revision.

According to the latest Oil Market Report released by the IEA, global oil consumption has continued to experience a slowdown in growth momentum with first-quarter growth estimated at 1.6 million bpd.

This figure falls short of the IEA’s previous forecast by 120,000 bpd, indicating a more sluggish demand recovery than anticipated.

With much of the post-Covid rebound already realized, the IEA now projects global oil demand to grow by 1.2 million bpd in 2024.

Furthermore, growth is expected to decelerate further to 1.1 million bpd in the following year, reflecting ongoing challenges in the market.

This revision comes just a month after the IEA had raised its outlook for 2024 oil demand growth by 110,000 bpd from its February report.

At that time, the agency had expected demand growth to reach 1.3 million bpd for 2024, indicating a more optimistic outlook compared to the current revision.

The IEA’s latest demand growth estimates diverge significantly from those of the Organization of the Petroleum Exporting Countries (OPEC). While the IEA projects modest growth, OPEC maintains its forecast of robust global oil demand growth of 2.2 million bpd for 2024, consistent with its previous assessment.

However, uncertainties loom over the global oil market, particularly due to geopolitical tensions and supply disruptions.

The IEA has highlighted the impact of drone attacks from Ukraine on Russian refineries, which could potentially disrupt fuel markets globally.

Up to 600,000 bpd of Russia’s refinery capacity could be offline in the second quarter due to these attacks, according to the IEA’s assessment.

Furthermore, unplanned outages in Europe and tepid Chinese activity have contributed to a lowered forecast of global refinery throughputs for 2024.

The IEA now anticipates refinery throughputs to rise by 1 million bpd to 83.3 million bpd, reflecting the challenges facing the refining sector.

The situation has raised concerns among policymakers, with the United States expressing worries over the impact of Ukrainian drone strikes on Russian oil refineries.

There are fears that these attacks could lead to retaliatory measures from Russia and result in higher international oil prices.

As the global oil market navigates through these challenges, stakeholders will closely monitor developments and adjust their strategies accordingly to adapt to the evolving landscape.

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