The Federal Government has hinted that it plans to double Nigeria’s
crude oil production level from 2.2million barrels per day to 4million
barrels per day in the next two years.
Making this revelation last week at the 2008 Society of Petroleum Engineers (SPE) conference in Abuja, the Vice President, Dr Goodluck Jonathan, said that the measure was aimed at meeting the country’s crude supply obligation to its global customers.
Dr Jonathan stated that this has been triggered by the fact world energy demand has continued to increase with projections showing a steady growth rate of about 2.2 per cent in total world energy consumption from 2004 to 2015, and a further growth rate of 1.7 per cent per annum up to 2030. He said that this situation translates to global crude oil demand growth of 1 per cent per annum up to 2015, and a further 1.3 per cent growth per annum up to 2030.
The vice president noted that with this, it follows that the current global oil demand stands at 86million barrels per day, out of which Nigeria produces barely 2.2million barrels per day, representing just 2.5 per cent of total global demand. He added that since most rapid growth in this demand spectrum will affect the non-OECD nations, including Nigeria, it was only natural that government increases investments in infrastructure and industrial development to enable it catch up with the trend.
Dr Jonathan, who was represented at the event by the Minister of Energy (Petroleum), Mr Odein Ajumogobia, said for Nigeria to remain relevant in this equation, without hurting its ‘zero’ flare-out target in the shortest possible time, the government must partner with venture partners to invest in new technologies that emphasise carbon capture and storage (CCS) sequestration offer which enhances the prospect of substantially limiting the emissions reduction level thereby helping to stabilize the atmospheric concentration of carbon dioxide.
The vice president encouraged professional in the oil and gas sector, particularly petroleum engineers, to work in synergy by enabling technologies and practices that foster fossil fuels production without intensifying atmospheric concentration of carbon dioxide, saying this was necessary in order not to allow the nation’s aspirations in meting its obligations to compromise sustainable development.
According to him, by so doing, Nigeria would be driving closer to achieving its target of meeting the Millennium Development Goals (MDGs) through the implementation of the Seven-Point Agenda of the President Umaru Yar’Adua’s administration, adding that since oil and gas was central to boosting the nation’s economy through increased revenue generation and foreign exchange earnings, it would ensure that the sector continued to serve as catalyst to jump-start and grow other sectors.
He said that it was in a bid to meet this mandate that the Federal Government inaugurated the Oil and Gas Sector Reforms Implementation Committee (OGIC) to fashion strategies toward repositioning the industry, adding that fundamental progress has been made with the presentation of the Petroleum Industry Bill to the president last Monday (August 4) by the OGIC.
Dr Jonathan said, when operational, the policy will ensure efficiency, transparency and accountability, which according to him; will enable robust development in the sector to facilitate the meeting of local and global demand while at the same maximizing revenues for Nigeria.
The vice president tasked the SPE to partner with government to ensure steady funding of the sector, increase reserves base while improving production, delve into new areas of exploration, arrest the steep natural declines and unlock the shut-ins, just as they make efforts to meet in-country demands with respect to refined products.
Other areas of cooperation, the president said, include reducing costs and cycle times, monetizing gas resources, open access to systems and facilities, petroleum parks and infrastructure interconnectivity while finding practical and effective solutions to pipeline vandalism and also investing efforts in integrated and focused research and development in the industry.
Dr Jonathan also challenged SPE to intensify capacity building through re-energised Nigerian content development, re-engineer their corporate social responsibility strategies to mitigate disruptions, secure commitment, alignment and adequate investment of all stakeholders to the gas master plan, and develop a robust strategy to assure a lasting solution to the Niger Delta situation.
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