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Oil & Gas Summiteer

Oil war: Obsessive egotism and the impending recession

OPEC, OIL, crude oil

The global economy is faltering, with the oil industry out against itself and no solution in the near future. Things are indeed, falling apart, with the centre no longer holding, akin to native Umuofia, in Chinua Achebe’s African classic, Things Fall Apart. What appeared as a three-year-old marriage between Saudi Arabia and its ally, Russia, to support oil prices and erase the glut on the market headed for dissolution because of perceived irreconcilable differences of partners turned opponents. The tension between gladiators, OPEC represented by Saudi Arabia and OPEC+ personified by Russia escalated and developed into an all-out war. They began the oil price war with uncontrolled crude oil supply to gain market share. In one week, oil prices plunged by over 30 per cent, the worst since 2002. The International benchmark Brent crude went down to multi-year lows, trading at US$27.36 on Wednesday night, while the United States benchmark the West Texas Intermediate (WTI) stood at US$22.77 per barrel. The OPEC basket of 13 crudes traded at US$30.36 a barrel according to OPEC Secretariat calculations.

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OPEC, OIL, crude oil

Oil war: Russia, Saudi Arabia throw hats into the ring

It is the sign of the time as the global economy falters again. What appeared as a three-year-old marriage between OPEC and its ally, OPEC+, to support oil prices and erase the glut on the market headed for dissolution because of perceived irreconcilable differences between partners turned opponents. Last week, OPEC recommended additional production cuts of 1.5 million barrels per day, bpd starting in April and extending until the end of the year. However, OPEC-ally Russia rejected the additional production cuts to shore up prices, with its energy minister, Alexander Novak, saying that from April the country’s oil producers will be pumping oil as usual, without compliance to any OPEC+ quotas. Saudi Arabia in a counter said it was cutting the prices for its oil and planning a production increase, to supply 12.3 million bpd in April, well above its current production levels of 9.7 million bpd, Saudi Aramco CEO Amin Nasser said on Tuesday. Has Russia become the bump in the road, as it is not willing to budge? Russia is the world’s second-biggest oil exporter after Saudi Arabia. Russia’s point of view is that the OPEC+ agreement has become meaningless. 

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Oil price, Coronavirus

Global natural gas pricing and investments

There should be no brownouts, as the Americans would say in 21st-century cities. It means there should be no partial light outs in cities. Ditto the rural dwellers globally. Warmer summers increase electricity consumption for cooling, and colder winters increase electricity consumption for heating. Which of these known sources of power coal, oil, natural gas, nuclear, hydro, and solar and the wind is the market shout out going for? It appears it is natural gas. Natural gas is becoming the most prevalent home heating fuel and the most widespread fuel used to generate electricity. Some have dubbed it the wonder fuel. Over a decade ago, it was unimaginable that it would become a preferred source of power. Natural gas fits many needs for power generation, considering it is more economical and produces only half of the carbon emissions of coal. It is in toughest competition with the renewables that may wait for some decades to come.

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COVID-19: NNPC donates ventilators, ambulances, others to Abuja isolation centre

NNPC’s gas to power support for grid stability

Three years ago, the famous ‘where is the power’ by President Muhammadu Buhari asking President Olusegun Obasanjo that held sway between 1999 and 2007, to account for the US$16 billion allegedly squandered in power projects. The electric power debacle was the issue of political power discourse among leaders and interest groups in Nigeria. Electric power development is a problem and we all admit that it is hindering industrial development in Nigeria.

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