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| Dr. Ibe Kachikwu |
“That’s gone,” Kachikwu
was quoted by Platts to have said during a news conference at CERAWeek in
Houston, Texas, United States. Light sweet Nigerian crude is very similar to
the light oil produced in US shale. As US shale production has grown, the
appetite for Nigerian crude in the US has dropped dramatically.
US imports
of Nigerian crude climbed as high as 1.31 million barrels per day in February
2006, according to the US Energy Information Administration. But as the shale
revolution began and output of light tight oil rose, Nigerian imports fell. In
July and August of 2014 and June of 2015 the US did not import any Nigerian
oil.
US
imports of Nigerian crude averaged 296,000 bpd in December last year, according
to EIA data, the highest monthly import level since 2011. But Kachikwu called
any significant increase in Nigerian shipments to the US “very unlikely.”
Nigeria’s
oil output averaged 1.93 million bpd in January, up 30,000 bpd from December,
according to the latest S&P Global Platts survey.
Reuters
quoted Kachikwu as saying that oil majors operating in both shale fields and in
members of the Organisation of Petroleum Exporting Countries should bear some
responsibility for prices.
“We need to begin to look at companies that are very active in these
areas and begin to get them to take some responsibilities in terms of stability
of oil prices,” Kachikwu told Reuters on the sidelines of the conference,
though he did not name any specific companies. Some of the same companies that
are working in shale are the same companies working in OPEC (member
countries),” he
added.
The
price of oil rose steadily throughout 2017 in the wake an agreement between
OPEC and non-members, including Russia, to cut production by 1.8 million bpd
beginning last year. That surge in prices, however, boosted US production
sharply, which hit a record in November 2017 at more than 10 million bpd and is
expected to surpass 11 million bpd later this year.
Kachikwu
said that the rapid growth in shale supply is “not just
a problem for OPEC, it’s a problem for the entire oil industry. I don’t think
it requires pressure. I think the oil companies would be the first to tell you
that stability in the oil price is important to them,” (Punch)
Hmmm!!! Folks, have
you ever imagined how the financial status of your firm will be when more than
20,000 CEOs and other key decision makers of blue-chip corporations pay for
your products and services or even give you very juicy deals. The link below
will tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
Have you heard
this? Many Nigerian exporters have been defrauded of huge amount of money in
the process of exporting commodities to foreign countries. Do you know why? They
were not trained on export operations, management, documentations and the best
methods of payment in export trade. This is terrible!!! Nigerians cannot
continue to lose money to foreigners in the course of export business.
Exporters, why don’t you get a practical manual that teaches the stages of
export trade from processing and packaging of commodities to receipt of payment
by the foreign buyers. It teaches export operations, export management, export
documentations and methods of payment in export trade? It is a contemporary
step-by-step guide to export trade. It tells all the contemporary dynamics in
export trade. To get it, click on the link below:
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