Nigeria’s oil exploration dips by over 70%

Kindly Share This Story:
“Without natural capital accountability GDP growth is meaningless’
Stock photo of an offshore oil rig

By Udeme Akpan

There are indications that oil exploration dropped in Nigeria by 70 per cent in February 2021, according to the Organisation of Petroleum Exporting Countries, OPEC.

In its March 2021 report obtained by Energy Vanguard, the organization put the nation’s rig count, a major indicator of exploration, and production, at seven.

This showed a drop of 70 per cent when compared to 23, recorded in the corresponding period of 2020.

However, industry experts said with the prolonged Coronavirus pandemic, lockdown, reduced demand, low prices, and by extension earnings, many companies have been constrained to execute their capital projects.

Nevertheless, the report, which raised hope that the global demand would increase in coming months, stated: “For 2021, world oil demand is expected at 5.9 mb/d, to stand at 96.3 mb/d. Oil requirements in 1H21 are adjusted lower, mainly due to extended measures to control COVID-19 in many key parts of Europe.

“In addition, elevated unemployment rates in the US slowed the recovery process. In contrast, oil demand in 2H21 is adjusted higher, reflecting expectations for a stronger economic recovery with the positive impact of vaccination rollouts.

“In regional terms, OECD oil demand is expected to increase by 2.6 mb/d in 2021 to stand at 44.6 mb/d, while non-OECD demand is seen rising by 3.3 mb/d to average 51.6 mb/d.”

It stated: “Non-OPEC liquids production is estimated to average 62.9 mb/d in 2020, a contraction of 2.6 mb/d, y-o-y. NonOPEC oil supply in 2020 declined in Canada, Colombia, Kazakhstan, Malaysia, the UK, and Azerbaijan, but increased in Norway, Brazil, China, and Guyana.

“Non-OPEC liquids supply for 2021 is forecast to grow by almost 1 mb/d to average 63.8 mb/d. The US liquids supply forecast remains unchanged, with the growth of 0.16 mb/d in 2021, although uncertainties persist.

“The main contributors to supply growth are expected to be Canada, the US, Norway, Brazil, and Russia. OPEC NGLs are forecast to grow by 0.08 mb/d in 2021 to an average of 5.2 mb/d, following a decline by 0.13 mb/d last year.”

In February, OPEC crude oil production decreased by 0.65 mb/d, m-o-m, to average 24.85 mb/d, according to secondary sources.”

Vanguard News Nigeria

Kindly Share This Story:

Become Rich Africa

Leave a Reply

Your email address will not be published.

Be Part of our
Business Forum

Join our Business Forum & meet other elites like you.
Ask questions, get answers & Enjoy new experiences!

Developed by BRA IT Team