Nigeria is at the genesis of a heartfelt depreciation of its traditional American-driven oil revenue, if the United States withdraws completely from its traditional dependency on the West African country’s reserves, after it resuscitated its domestic oil reserves, a top official said in Abuja, Tuesday.
Projections show that the US production share of the oil market in the globe may be the highest, of any nation, by the year 2020, courtesy of new technologies including fracking.
Early this year, President Barrak Obama told an excited Congress that the Federal state was on the verge of self-dependency as far as gains in the entire energy sector are to count, of which oil and gas have much to account for.
Nigeria ranks as the highest net exporter of the natural resource to the other side of the Atlantic, and has the continent’s biggest production capacity that verges on 2m barrels, everyday.
the country continuously sees $6b per annum go down the gutter as a result of unrefined petroleum thievery.
Even as the Washington DC shadow looms over the stakes of Nigeria oil, a major exploiter of the riches of the Niger-Delta, Shell, has already provided a blueprint on how the country needs to boost its production and investment potential.
According to the multinational, the government ought to first address the financial side of the bargain by tipping the unsavory scale that puts permit-acquisition in Nigeria a prolonged and dear affair, in comparison to the planetary margins of a similar nature.
Secondly, the investment in the Niger-Delta can improve, in the long run, when the terror and communal animosity against oil giants ceases to be, a matter that has plagued the sector since its founding days of the 1950s, 60s, 70s and 80s, when perpetual warfare against unequal oil-sharing by marginalized communities, would relentlessly rear its head.
The current menace of insecurity comes from a group non-affiliated to the oil sector, Boko Haram, but which still traces its cause to oil-revenue sharing.
The Petroleum Industry Bill (PIB) is also at the heart of reform, for as Shell says, the government has to grapple with the factors of insecurity and financial disadvantages through the all-important legislation. For instance, the country continuously sees $6b per annum go down the gutter as a result of unrefined petroleum thievery. This is due to destruction of pipelines by groups that fight with the excuse of the infringement of their ecological resources.
On the other hand, companies lament on how much of their expenditure goes towards overhauling pipelines and other on-shore machinery that fall from acts of sabotage.
In any case, Nigeria may need to exploit its huge oil basket by advanced techniques as the United States has been using to resuscitate its black gold.