Markets

‘Nigeria’s Oil Output, Others to Hit 12m bpd’

Published

6 years ago

March 29, 2018

‘Nigeria’s Oil Output, Others to Hit 12m bpd’

Daily oil production from African countries, including Nigeria, has been projected to reach 12 million barrels per day (bpd) in the next few years. The current output is about 10 million bpd,.

African Petroleum Producing Organisation (APPO), formerly African Petroleum Producing Association (APPA), Executive Secretary His Excellency, Mahaman Laouan Gaya, spoke of the projection at a summit in Abuja.

He noted that African producers should have a common platform in terms of policy initiatives and strategy to gain the deserved relevance in the comity of global oil producers.

He advised African oil producers to come together to surmount the global oil and gas challenges and reap the benefits from the petroleum value chain, while also working in partnership with stakeholders in the industry.

Gaya said: “Petroleum exploration started in late 19th Century in America, Asia and the Middle East, but crude oil production started in Africa in the late 1950s and early 1960s. However, more than 50 years later, less than 20 African countries are petroleum producers, producing about 10 million barrels per day. In the few years to come the production is estimated to reach 12 million bpd.

“If Africa should be considered as one producer, for sure our continent will challenge Saudi Arabia, United States of America and Russia. This is the reason Africa must have a common response to global oil and gas challenge. This will measure and determine the place of Africa in the petroleum geopolitics. Africa is the future of the world oil and gas industry.”

He continued: “Petroleum is one of the key catalysts of African development. In some African countries, oil and gas represent more than 70 per cent of the national income. Global oil and gas challenge is an audacious one that should be tackled by African producers.

“From APPO’s point of view, African petroleum producers are better positioned to create maximum leverage from their resources and government when they adopt a common platform for oil and gas policy initiatives and development strategy. Accordingly, Africa’s drive to grow to the global petroleum challenges can be achieved through regional cooperation in all the petroleum value chain, contribute to the understanding of energy situation and policies of Africa and other nations, which will make a better energy mix, assist African net oil importing countries to meet their energy needs.”

Gaya emphasised the need for such cooperation, noting the importance of enhancing the levels of cooperation among all concerned parties including energy producers and consumers, owners of advanced technology, financial institutions and policy makers to promote benefits and mutual interests of achieving partnerships based on unified targets and objectives.

APPO was created in 1987 in Lagos to serve as a platform for African petroleum producing countries to co-operate, collaborate and share knowledge and competences. It has 18 members – Nigeria, Algeria, Angola, Benin, Cameroon, Chad, Democratic Republic of Congo, Congo, Côte d’Ivoire, Egypt, Gabon, Ghana, Equatorial Guinea, South Africa, Libya, Mauritania, Niger and Sudan.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Surge as Hurricane Threat Looms Over U.S. Gulf Coast

Published

15 mins ago

September 9, 2024

Investors King

Oil jumped in Asian trading on Monday as a potential hurricane system approached the U.S. Gulf Coast, and as markets recovered from a selloff following weaker-than-expected U.S. jobs data on Friday.

West Texas Intermediate crude oil rose 72 cents, or 1.06%, to $68.39 a barrel while Brent crude oil was up 71 cents, or 1%, at $71.77 a barrel.

Prices had gained as much as $1 during early Asian trading before pulling back.

Analysts said the bounce was in part a reaction to a potential hurricane in the U.S. Gulf Coast.

A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said on Sunday.

The U.S. Gulf Coast accounts for some 60% of U.S. refining capacity.

“Sentiment recovered somewhat from last week’s selloff,” said independent market analyst Tina Teng.

At the Friday close, Brent had dropped 10% on the week to the lowest level since December 2021, while WTI fell 8% to its lowest close since June 2023 on weak jobs data in the U.S.

A highly anticipated U.S. government jobs report showed nonfarm payrolls increased less than market watchers had expected in August, rising by 142,000, and the July figure was downwardly revised to an increase of 89,000, which was the smallest gain since an outright decline in December 2020.

A decline in the jobless rate points to the Federal Reserve cutting interest rates by just 25 basis points this month rather than a half-point rate cut, analysts said.

Lower interest rates typically increase oil demand by spurring economic growth and making oil cheaper for holders of non-dollar currencies.

But weak demand continued to cap price gains.

The weakness in China is driven by economic slowdown and inventory destocking, Jeff Currie, chief strategy officer of energy pathways at U.S. investment giant Carlyle Group, told the APPEC energy conference in Singapore on Monday.

Refining margins in Asia have slipped to their lowest seasonal levels since 2020 on weak demand from the two largest economies.

Fuel oil exports to the U.S. Gulf Coast fell to the lowest level since January 2019 last month on weaker refining margins.

Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

Published

4 days ago

September 5, 2024

Samed Olukoya

Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

Published

5 days ago

September 4, 2024

Samed Olukoya

Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.