Experts in Oil and Gas Industry have disclosed that the Organisation of Petroleum Exporting Countries, OPEC, Global Oil Outlook favours Nigeria as the Organisation stated that Oil will be relevant up to the year 2045.
This discourse has been on the front burner as the campaign for Energy Transition is thickening.
Racting to the projection by OPEC in Good Moring Nigeria, a programme in Nigeria Television Authority, NTA, last Wednesday, the Group Managing Director, IIPEP, Tim Okon, who is also former Director of Transformation & Group General manager, Corporate Strategy, the Nigerian National Petroleum Corporation, NNPC, said that Nigeria is not out of Oil and that the undeveloped and developing nations require Oil to grow their economies. And so there is no need to panic. He added that the focus is on Gas utilization. So also that Aviation transport will pick up to its former level before COVID-19 pandemic. The year 2022, 2.2 million barrels per day according to him will make up for the shortage experienced in the past.
Okon noted that the challenge is how to invest to bring production to optimal level. “We need all the energy sources. Beyond the rhetorics in energy transition, we need the fossil fuel.
Another energy expert, the CEO of New Hampshire Capital Limited, Odion Omonfoman, pointed that the report in general says that Oil remains the main source of energy, adding that Oil remains the dominant fuel type. He noted that Energy Transitions is on but gas will blossom in Nigeria.
NNPC according to him is in the right direction as it focuses on Gas. “Energy demand will be meet by Fossil fuel and non-fossil fuel. So we should maximize our focus gas as Oil still remain the dominant fuel type”, he said.
Speaking in the same vein, the Ghana National Petroleum Corporation Chair in Oil and Gas Studies at the University of Cape Coast’s Oil and Gas Institute, Ghana. Wumi Iledare, who is also the Executive Director, Emmanuel Egbogah Foundation, stated that attention is on Population, Industrialisation and Climate change, adding that emphasis is on electric vehicles. OPEC projection according to him remains valid. The reduction in Oil demand is as a result of shift to electric vehicles. He pointed out that they are trying to replace Fossil fuel vehicles to Electric vehicles but oil is not a participant in the transportation. The transition to replace Oil according to him is a myth as Fossil fuel accounts for 81 percent of the global energy demand.
Oil he said remains relevant, so no panic on Oil in the entire energy value chain.
Also supporting this view, the MD/CEO, Gacmork Nigeria Limited, Alex Eyim, said Energy Transition is like a game that is going on. So we still have hope in Nigeria.
“We should look at how to develop our gas to optimal utilization as there are better future for Oil in the global Oil demand. We should indigenise the Industry, drill, refine and sell. The myth we had 40 years has disappeared as Oil is still relevant up till now”, he stated.
Speaking further, Okon noted that this is the time to manage the transition. “We need to process our Hydro Carbon as we did in Cement”. He noted that we have succeeded in Cement Production as we no longer import Cement. “So we need to develop our Hydro Carbon her in Nigeria”, he opined.
“We have a nation Industrial Revolution plan, this is the tie to make a change. We have to develop the mechanism to clean the pollution in Oil producing Communities. We captured the necessary incentives to encourage people to go into gas production for the domestic market”, he stressed.
Omonfoman pointed out that investment was stalled in the past as a result of delay in passage of the Petroleum Industry Bill, now Petroleum Industry Act. But the good news according to him is that Dangote has invested Petrochemical Refinery, so also the Chairman of BUA, Abdul Samad Rabiu and some have invested in Modular Refineries.
He maintained that we need investment in the Midstream Sector. “Petrochemicals and Aviation should be given attention to grow our Industries. We should use our Oil to invest in renewables as big money is chasing renewables”, he stressed.
Speaking further, Iledare said that the PIA may not be hundred percent but it is an excellent beginning.
So, he noted that implementation is important with regards to funding as the world will need 110 million barrels per day in 2045.
The petroleum economist stated that Nigeria has 37 billion barrels of Oil reserves. He maintained that there is a problem as Energy development is essential to economic development. So also that people will go to where they get value to their money. “Energy poverty is there to take note of. The world according to him will look at the board of NNPC to know where to invest their money. “The board of these institutions should put things in order. So also the Implementation Committee of PIA. The board must be effective, efficient and accountable to the people in order to take the sector to a higher level.
“So, Oil is going nowhere because there is no optimal supply of energy mix without Oil. If not, it will collapse. Oil account for 59 percent of transportation. So, electric vehicle is an assumption, as it is not about growth”, Iledare maintained.
Neyim stated that we must invest on the development of our Oil here in Nigeria without looking for investment from outside the shores of this country. “We cannot be expecting investment from the people who don’t want us to produce Oil. Nigeria has trained enough people to drive the Oil and Gas Industry. Just encourage and enhance them to run the system here in Nigeria. The manpower is here. We should put the right people in the board. We should use our resources to develop this country”, he noted.
“We should utilize our resources to develop, let’s do the right thing, use the right people, invest our money well and churn out good graduates to handle the resources, let’s be honest as a country. Do the needful to develop this country. Modular refineries coming up were not envisaged in the past”, he stressed.
