Crude Oil

Oil Reserves Under Threat from Climate Change?

Climate Change is a global battle that has been fought for years now, amidst fears that lack of care for the environment could negatively impact human beings and living conditions in years to come. The oil market is also under threat from the phenomenon, as there are predictions that rising sea levels could affect oil reserves in Nigeria. 

In a study, risk consultancy firm Verisk Maplecroft discovered that climate change may lead to difficulty in Nigeria’s production of its large oil and gas reserves. Nigeria, Africa’s number two exporter, has most of its reserves in the Niger Delta region, which has a river system around it. This leaves the reserves vulnerable to possible drought and flooding due to climate change.

Apart from Africa, the report also said that the oil reserves in the rest of the world are in danger. The report cited problems like storms, rising tides and rising temperatures as possible affectors of the oil market.

An estimate of about 60 million, or a total of 40 percent of the world’s oil recoverable oil and gas reserves are under threat from the wild and volatile weather, according to the firm’s research. The most vulnerable to the attacks would include Saudi Arabia, Iraq and Nigeria.

However, Nigeria has come out to say that it has climate-related problems under control. The Minister of State for Environment, Sharon Ikeazor has said that the Federal Government of Nigeria has taken multiple steps as interventions in climate change, set to curb the problem. According to her, steps have also been made to increase the country’s resilience, to avoid strong consequences from climate change situations.

The Minister mentioned the Climate Change Bill which was passed by the National Assembly, which includes a long-term plan for the country to achieve a net zero carbon emission, national climate resilience and adequate financing for national development in the climate area.

Investors King Contributor

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