HYDROCARBON OIL STILL RELEVANT IN ENERGY MIX

The Secretary General of the Organization of Oil Producing Countries, OPEC, Haitham Al Ghais says the world’s rapidly growing population and the migration to cities is an opportunity for the oil and gas sector which will remain dominant in the energy mix.

Al Ghais made the assertion at the Nigeria Oil and Gas week in Abuja said Oil and gas remained one of the huge untapped source of revenue to developing countries who are still growing their economies.

The OPEC secretary general called for an understanding in the ongoing negotiation for energy transition emphasizing the imperative of access to energy for poor and struggling economies.

He said, “We see energy demand rising by an estimated 23% by 2045
This will be fueled by a world economy that is expected to double in size, growing from $138 trillion last year to $270 trillion in 2045. We also forecast a rapidly expanding world population that will surpass 9.5 billion people, with most growth seen in non-OECD developing countries
Urbanization alone will account for over half a billion people moving to cities around the world by 2030.

Al Ghais added that “This data tells us that the world will require all forms of energy to meet long-term energy needs. Oil and gas will remain the predominant fuels in the energy mix. In fact, oil alone will retain its share at almost 30% in 2045 as world demand for oil soars to an estimated 116 mb/d by that time.”

The Secretary General, Gas Exporting Countries Forum, GECF, Mohammed Hamel reiterated that all Energy sauces remain important and called for the adequate utilization of Gas resources.

Also speaking, the Chairman, Independent Petroleum Producers Group, IPPG, Mr. Abdulrazaq Isa observed that the under exploration and production of the country’s Huge gas resources was unhealthy for its economy.

Mr. Abdulrazaq therefore suggested the immediate conclusion of all pending divestment transactions by the Federal Government, addressing deep water development and production as well as adopting a national value retention strategy.

These priority areas according to him, will “provide the most realistic and sustainable pathway towards
meeting our national long term production aspiration of 4 million barrels of oil
per day and 13 billion cubic feet of gas per day. Consequently, as a matter of
national importance, Nigeria must act fast and hasten the pace of recovery across
the entire industry, even if it means Mr. President declaring a state of
emergency in the oil and gas sector! We must be seen to do everything possible
to unleash the industry.”

“Unlocking this incremental production is achievable only
through collaboration and commitment between the industry regulators (NUPRC
and NMDPRA) and industry operators (NNPCL, OPTS and IPPG) and this must
be done for the sake of our country.” He said.

Gwamkat Gwamzhi