Nasarawa state Governor Abdullahi Sule said last Thursday that the country’s major challenges and problems could be resolved with its gas reserves.
Sule said this in Abuja at the 6th Triennial Branch Delegates Conference/Award of the Department of Petroleum Resources (DPR), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), under the theme: “Petroleum Industry Act (PIA) – Prospects for the Nigerian oil and gas industry”.
The governor said Nigeria was a gas country with oil, going by the volume of her gas reserves.
“When I was working for an oil and gas company in the past, we used to categorise Nigeria as among the various nations of oil and gas, we used to see Nigeria as a gas country with oil.
“With over 200 trillion standard cubic feet of gas that we have, Nigeria is indeed a gas country. And for those who understand the industry, if we develop the gas alone, even without the 40 million barrels of oil we have, the gas will be enough to sustain Nigeria.
“All the problems about power, fertiliser, the challenges we have in agriculture will be resolved easily with the gas reserve that we have.
“I want PENGASSAN to promote gas because a lot of countries survived with gas; it’s gas that made Qatar what it is today, not oil.
“So, this is the opportunity we have that we must develop, if we have to survive as a nation,” Sule said.
Chief Executive Officer (CEO), Mr Sarki Auwalu, (DPR), who was the chief host of the conference, said the focus on the PIA was to highlight the importance of the law to the oil and gas sector.
Auwalu also said that PIA would overhaul the oil and gas industry and eventually set the country on the path of greatness.
“The theme of this conference is a further testament to the critical role played by the constructive unionism in national development, the petroleum industry in particular.
“You will agree with me that President Muhammadu Buhari achieved a monumental feat in advancing the Nigeria oil and gas industry.
“This was enabled through the signing of the PIB into an Act and this took us 20 years to achieve this legacy; president Buhari deserves an applause.
“In spite of the fact that we are going to net-zero, I believe that the PIA has a focus on the future and we will see how that future will be guaranteed with respect to environmental consciousness.
“I believe that the PIA will guarantee the future of our children and grand children,” Auwalu said.
He called for closer collaboration between PENGASSAN and the DPR, especially as it concerned the implementation of the PIA, for the oil and gas industry to continue to thrive.
President of PENGASSAN, Mr Festus Osifo regretted that the PIB was signed into law by President Buhari with some errors, but noted that it could be subjected to amendments for some of the errors to be removed.
“The only snag we have today is that we channel our energy into production of crude oil reserve; if we continue the way we are today, that is 2 million barrels per day and about 37 million barrels reserve, it will take us years to move forward.
“We should be thinking of how to fast track to ensure that the 2 million production is moved to 3 or 4 million barrels.
“If we don’t do that quickly, we are going to be caught in the trap of energy transition or fall into the web of what happened to our coal. Today, coal is trapped in the ground and nobody is interested”, he said.
US Plans To Reduce Gasoline Prices
Selling millions of barrels from the SPR may do precious little to impact the price of gasoline directly
·If the Administration were to opt for an SPR sale to increase the availability of crude, it could likely release up to 60 million barrels of crude oil
·The Biden Administration is considering tapping the Strategic Petroleum Reserve as a potential tool to bring down the gasoline prices in America that have hit a seven-year high this year.
However, selling millions of barrels from the SPR may do precious little to impact the price of gasoline directly, traders and analysts say.
A sale from the SPR could be one of “tools in the arsenal”—as U.S. President Joe Biden said this weekend – which the Administration could use to relieve the burden on households who have been paying in recent months the highest prices at the pump since 2014.
Yet, the U.S. may be able to release up to a tenth of the current stockpile in the SPR, traders have told Bloomberg. That wouldn’t be enough to bring down gasoline prices as much as the Administration possibly hopes, they warn.
Moreover, most of a potential sale could consist of sour crude grades, which currently are not the favorite of refiners because they need more natural gas—whose prices are much higher now—to process those sour grades into fuels.
SPR Release On The Table After OPEC+ Snub
“The SPR is certainly on the table as an option. The president will have more to say about that,” U.S. Energy Secretary Jennifer Granholm said on Friday when asked what America can do now to reduce gasoline prices.
President Biden is considering a release from the SPR as a possible move to reduce gasoline prices in the United States, after OPEC+ ignored on Thursday calls for putting extra barrels on the market, Secretary Granholm told Bloomberg last Friday.
The President could announce measures to address high gasoline prices as soon as this week, Granholm told MSNBC in an interview on Monday.
“Hopefully there will be an announcement or so this week,” Granholm told MSNBC, referring to the President’s possible moves.
“He’s certainly looking at what options he has in the limited range of tools a president might have to address the cost of gasoline at the pump, because it is a global market,” the energy secretary added.
Gasoline Prices Highest Since September 2014
Meanwhile, U.S. gasoline prices continued to climb despite the end of driving season two months ago.
In the week to November 8, “The price at the pump continued its slow climb, rising two cents on the week, with the national average for a gallon of gas hitting $3.42,” AAA said on Monday. That’s the highest since September 2014.
“The latest decision by OPEC and its oil-producing allies to maintain their planned gradual increase in output will not help lessen supply constraints, so any relief will most likely have to come from the demand side,” according to AAA.
Shorter days with the end of the daylight saving time could decrease demand for gasoline in coming weeks, AAA spokesperson Andrew Gross said.
SPR Sale Will Likely Be Up To Three Days Of U.S. Petroleum Consumption
If the Administration were to opt for an SPR sale to increase the availability of crude, it could likely release up to 60 million barrels of crude oil, after accounting for mandatory sales pre-approved by Congress and the minimum volumes needed at the storage sites, a source at one of the world’s top oil trading houses told Bloomberg on condition of anonymity.
As of November 5, the SPR held 609.4 million barrels of crude oil, of which 252.5 million sweet crude and 356.9 million sour crude.
A release of up to 60 million barrels in theory would cover around three days worth of total U.S. petroleum consumption, which was 20.5 million barrels per day (bpd) in the pre-pandemic 2019, per EIA data.
According to analysts, an SPR sale wouldn’t do much to reduce prices at the pump and relieve the burden on households amid inflationary pressure for all other goods.
“Other Tools In The Arsenal”
President Biden hinted during the weekend of “other tools in the arsenal” to tame rallying gasoline prices.
“There are other tools in the arsenal that we have to deal — and I’m dealing with other countries; at an appropriate time, I will talk about it — that we can get more energy in the — in the pipeline, figuratively and literally speaking,” President Biden said, referring to the oil market after OPEC+ snubbed the U.S. Administration’s call for extra supply.
On Monday, eleven Democratic Senators wrote a letter to President Biden “to express our support for your efforts to help families and businesses across the nation who are struggling to cope with soaring gasoline prices.”
“Continued U.S. exports and overseas supply collusion could be devastating to many in our states, contributing to higher bills for American families and businesses,” the Senators, including Elizabeth Warren, said.
“In light of these pressing concerns, we ask that you consider all tools available at your disposal to lower U.S. gasoline prices. This includes a release from the Strategic Petroleum Reserve and a ban on crude oil exports. We hope you will consider these tools and others to make gasoline more affordable for all Americans,” the Senators wrote.
Faced with the highest gasoline prices in seven years and one of the worst fears of every American president—high prices at the pump, the U.S. Administration with the long-term clean energy agenda is now scrambling to provide immediate relief to people’s gasoline and energy bills.
FG Increases Prices Of Electricity Meters
In a circular dated November 11, 2021, issued by the Nigerian Electricity Regulatory Commission, NERC, price of a single-phase meter has been increased from the current cost of N44,896.17 to a revised price of N58,661.69.
It also increased the price of a three-phase meter from the current cost of N82,855.19 to a revised rate of N109,684.36.
The memo with reference number NERC/REG/MAP/GEN/751/2, entitled ‘Review of the unit price of end-use meters under the Meter Asset Provider and National Mass Metering Regulations’; managing directors, all electricity distribution companies and all meter asset providers are to effect the increment from November 15, 2021.
Seplat Energy Distances Self From Chairman
A statement from the company on Tuesday, signed by its Director, Legal and Company Secretary, Mrs. Edith Onwuchekwa, said: “Seplat Energy has been made aware of the ex parte Interim Orders of Mareva Injunctions which were granted by the Federal High Court sitting in Lagos, Nigeria in a court action instituted by Zenith Bank Plc against Shebah Exploration & Production Company Limited and eight others, with an additional 29 cited parties.
“The Interim Orders give an administrative mandate to Seplat Energy Plc and others not to deal with the assets of (or transfer funds to) Shebah Exploration & Production Company Limited, Shebah Petroleum Development Company Limited and Dr. A.B.C. Orjiako.
“The order has no impact on the operations of Seplat Energy. We understand the injunction relates to loans made by Zenith Bank Plc to Shebah Exploration & Production Company Limited in 2014.”
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