OPINION: Energy independence and the Nigeria’s Economy – by @abubakar47i

Published:17 Feb, 2013


“Like any business, the oil industry runs on the basic premise of supply and demand. The more  supply – the lower the price. The higher the demand – the higher the price. In other words, the more people who can buy oil, the higher the price”  – Ron Wyden


As major oil importing country, the United States of America goes for the jugular to getting their energy independence, the question here is, where do we stand as a country? Instead of looking at the BIG PICTURE, our leaders waste resources though not just out of predisposition for stealing and avarice, but because they dearth the sense of value and do not know the importance of legacy.


Proponents of hydraulic fracturing tout its potential to make the United States the world’s largest oil producer and make it an energy leader. Proponents say that hydraulic fracturing would give the United States energy independence. The United States said it will overtake Saudi Arabia and Russia as the world’s leading oil producer by about 2017 and will become a net oil exporter by 2030 (Reuters). Globally, gas use is expected to rise by more than 50% compared to 2010 levels, and account for over 25% of world energy demand in 2035. Anticipated demand and higher prices abroad have motivated non-US companies to buy shares and invest in US gas and oil companies.


What is hydraulic fracturing?


Hydraulic fracturing is the propagation of fractures in a rock layer by a pressurized fluid. Some hydraulic fractures form naturally—certain veins or dikes are examples—and can create conduits along which gas and petroleum from source rocks may migrate to reservoir rocks. Induced hydraulic fracturing or hydrofracturing, commonly known as fracing, fraccing, or fracking, is a technique used to release petroleum, natural gas (including shale gas, tight gas, and coal seam gas), or other substances for extraction. This type of fracturing creates fractures from a wellbore drilled into reservoir rock formations(wikipedia).


Increased US production of this Hydraulic Fracturing means that foreign light sweet crude imports by US Gulf coast refiners have fallen dramatically as refiners choose to run crude from the Eagle Ford rather than more expensive foreign grades. Imports of light sweet Nigerian crude in the US Gulf coast market fell to an estimated 150,000bd in January from around 600,000bd a year earlier. “Expectations are for this trend to continue so that, eventually, virtually no light sweet foreign crude will make its way to the region, just as the US midcontinent has virtually ceased all imports apart from Canadian and Saudi Arabian crude since the middle of last year” – US Oil Shale Report.


Now, how does this affect Nigeria’s economy?


In the recent projections, total global crude output would exceed demand by more than 8 million barrels a day, at which point OPEC would lose price control and crude oil prices would collapse.


Read more from Business Report here



Nigeria depends on the revenue from the sale of oil, plus taxes on this revenue, to help support country budgets. As oil prices collapses, governments find themselves with less money to fund “promised” public welfare programs. This dynamic can cause lower oil prices to lead to political instability in some oil exporting nations.


Improvements in horizontal drilling and hydraulic fracturing, or fracking, have so far spurred drilling in states such as Texas, North Dakota and Oklahoma. Even Saudi Arabia, OPEC’s largest producer, reduced output in December because customers asked for less, Ibrahim al-Muhanna, an adviser to Saudi Arabian Oil Minister Ali al-Naimi, said Jan. 14.


We need a total overhaul in all Government sectors and agencies and the time is now lest we run out of resources or lost to competition. In as much as I am aware that no single tenured government can take us through these precedences, at least a reasonable government would define its path – the road map.


There’s a need to reinvest greatly in non oil trades; education, Agriculture, tourism, mines and steel and possibly foreign investments.


Let’s Act NOW!


Follow the writer on twitter: @abubakar47i

3 thoughts on “OPINION: Energy independence and the Nigeria’s Economy – by @abubakar47i”

  1. I much like the invaluable info you offer in your own article content.I will bookmark your blog page and check again here routinely.I’m extremely certain I will discover a whole lot of recent things right here! Very good luck with the following!

  2. whoah this weblog is magnificent i love reading your articles. Stay up the great work! You recognize, lots of individuals are searching round for this information, you could help them greatly.

  3. Air Jordans says:

    What’s up, I just wanted to mention, you’re wrong. Your point doesn’t make any sense.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Recent Posts

The consequences of the U.S. war on terrorism in Africa.

On May 5, President Barack Obama hosted his Djiboutian counterpart, Ismail Omar Guelleh, at the White House. The two leaders signed a 20-year lease agreement for the Djibouti-based Camp Lemonnier, the biggest U.S. military base in Africa. Covering 500 acres, the installation is a crucial launching site for U.S. military operations against militant groups in the Horn of Africa and Yemen. The U.S. agreed to pay an annual fee of $70 million for the site,...

Shadow War in the Sahara: A look at US/French Military Activities in Africa.

Africa remains a key territory on the global chessboard of the 21st century. Rich in oil and natural resources, the continent holds a strategic position. Whoever controls Mali, controls West Africa, if not the whole of Africa. Doulaye Konate, Association of African Historians, Sub-Saharan Africa is home to six of the world's 10 fastest growing economies. North Africa counts with vast oil and natural gas deposits, the Sahara holds the most strategic nuclear ore, and resources...

Kashamu asks court to stop FG’s move to abduct him.

The Senator representing Ogun West in the Senate, Buruji Kashamu, yesterday asked the Federal High Court sitting in Abuja to stop the Federal Government from forcefully abducting and transporting him to the United States of America to face drug related criminal charges. Joined in the suit are the Attorney General of the Federation (AGF) and the Chairman of the National Drug Law Enforcement Agency, NDLEA. Kashamu, through his counsel, Charles Ndukwe, told Justice Gabriel Kolawale that since July when the court...

Stop EFCC from transferring my case to Lagos – Kalu tells court

The former governor of Abia State, Dr. Orji Uzor Kalu, yesterday asked the Federal High Court sitting in Abuja to stop the Economic and Financial Crimes Commission (EFCC) from transferring his case from the Abuja Division of the court to Lagos. Kalu is, therefore, seeking an order of mandamus compelling the EFCC and the Attorney General of the Federation to try him in the Abuja division of the court. The applicant, in a motion ex parte brought pursuant to order 34...

Cattle dealers threaten nationwide strike.

The Amalgamated Union of National Cattle and Foodstuff Dealers Association of Nigeria has threatened to embark on indefinite strike over alleged extortion by security agents across the country. Hamman-Jalo Hamman-Jam, acting national chairman of the association, told NAN in Mubi, Adamawa state, on Thursday, that the union was tired of the situation. Hamman-Jam said members of the union were made to part with money at various security check points on major federal highways especially from the northern to eastern part of...

Arms scandal: Panel submits final report, indicts top FG officials.

After 14 months of painstaking work, the Presidential Committee on the Audit of Defence Equipment Procurement in the Nigerian Armed Forces (2007-2015) has submitted its final report to President Muhammadu Buhari. It was gathered from highly placed sources that Buhari received the final report at the presidential villa on Sunday from the Air Vice Marshal J.O.N Ode (rtd)- led panel. It was authoritatively gathered that the report, a copy of which was made available to the National Security Adviser (NSA), Maj.-Gen....

Corrupt judges are a disgrace to Africa – NGO

A non-government organisation has described the recent events unfolding around issues of alleged corruption of Nigeria judges as a huge embarrassment to the continent. The Executive Director of African Renaissance Project (ARP), Dr. Kwame Kobina, stated this at Kotoka International Airport, Accra, Ghana on his way to the 4th International Conference on Democracy and the Rule of Law in Africa, scheduled for Banjul, Gambia by the weekend. He decried the rate of decay and the spate of scandals among the judiciary...

NSCDC alerts public of fake recruitment.

The Nigeria Security and Civil Defence Corps (NSCDC) in Benue has alerted the public of the existence of employment racket within the command. The NSCDC Commandant, Mr Shuaibu Jibrin, told the News Agency of Nigeria (NAN) in Makurdi on Thursday that the racket had been collecting money from applicants in the guise of offering them employment into the organisation. Jibrin, however, assured that its searchlights had already been beamed on the perpetrators while explaining that all recruitment exercises by the organisation...

Economic recession: We will emerge stronger – Buhari assures

President Muhammadu Buhari, on Thursday assured Nigerians that the country will emerge stronger, better and prosperous from the current economic challenges. The President gave the assurance in a message to the 7th National Prayer Breakfast meeting, titled; “A tree and it’s fruits, is yours a blessing or a curse”. Represented by the Secretary to the Government of the Federation, Babachir Lawal, Buhari said leaders in the country must strive to be a light to the people they lead. He said, “As leaders...

Kogi government overhauls revenue system, to begin TSA.

With recommendations for adoption of the Treasury Single Account (TSA) and the establishment of a legally sound and operationally efficient post-autonomy process for the Board of Internal Revenue (BIR), Kogi State is set to rejig its revenue system. The move, which is part of efforts to fight corruption and wastes in public finance management, has already received commendations from the state government as the Adhoc Committee on Fiscal Responsibility submitted its report. In recent times, the need to engage professional accountants...

APGA crisis deepens as party disowns Vice Chairman.

Ifeatu Obiokoye, the National Publicity Secretary of the All Progressives Grand Alliance, said the party never held its National Working Committee meeting, as claimed by Vice-Chairman, South East zone, Nwabueze Okafor. Obiokoye, via a statement he issued on Wednesday in Abuja, said no such meeting held anywhere. Okafor said on Monday that APGA’s NWC held a meeting under his chairmanship to ratify the purported suspension of the National Chairman of the party, Dr. Victor Oye. Obiokoye said: “APGA wishes to assure members...

Why we’re taking a huge N9.61 trillion loan – FG

The federal government has explained why it wants to take a $30.54 billion (about N9.61 trillion) loan, which is believed to be the biggest single external loan request by any government in recent history. President Muhammadu Buhari, who on Tuesday requested the National Assembly’s accelerated approval of the borrowing plan, said it would include a $575 million World Bank loan. The total loan will fund a number of key projects in the country, he said. The projects cut across key sectors of...

God directed me to sack my commissioners – Udom Emmanuel

The Akwa Ibom State governor, Udom Emmanuel, has claimed the holy spirit of God led him to sack the State executive council, adding that all indigenes stand a chance of making the next cabinet. He further claimed that he was looking up to God to help him constitute the next executive council. The governor, in a statement issued last week by the Secretary to the State Government, Etekamba Umoren, sacked all the commissioners in the state with immediate effect.  and no...

Education must top governments’ priority list – Oshiomhole

Governor Adams Oshiomhole says education must top the priority list of governments at all levels, if the country must make any headway. Speaking at the 20th convocation of the school, where seven finished in First Class Division for the 2013/2014 and 2014/2015 sessions, Oshiomhole urged management of universities to, on their parts, ensure that schools are not shut saying shutting down schools affect Nigerian students’ abilities to compete with their foreign counterparts that enjoy uninterrupted academic calendars. “There are many...

BREAKING: Bukola Saraki loses bid to halt CCT trial.

The appeal court on Thursday dismissed Senate President Bukola Saraki’s appeal challenging his trial at the Code of Conduct Tribunal (CCT).   The panel led by Abdul Aboki, a justice, dismissed the appeal and held that the appellant’s submission was laced with sentiments.   Aboki further struck out a cross appeal by the appellant filed at court, saying that it was “smuggle?d in”.   Saraki is standing trial for alleged false declaration of assets. ? More to follow…

Video: If accused Judges should resign, Buhari should also resign over WAEC result – Ebun Adegboruwa

A human rights lawyer, Ebun Adegboruwa, in an interview with Channels TV, argued that the judges accused of corruption should not step aside. He claimed that according to law, an accused person is presumed innocent until proven guilty by a competent court. Ebun Adegboruwa also argued that if the judges should resign, Buhari should also resign over allegations about his WAEC result. Watch video: https://youtu.be/Eh9OugLX3Kk

Senate approves bill to end business monopolies.

The Senate has approved a bill seeking to end all forms of business monopolies in Nigeria and promote trade competition in the 36 states of the federation. The upper legislative chamber, therefore, approved scrapping of the Consumer Protection Council (CPC) and ratified its replacement with the Federal Competition and Consumer Protection Commission. Passing the bill sponsored by Senator Andy Uba (PDP, Anambra South), yesterday, through a second reading, the Senate directed its Committee on Trade and Investment to conclude all legislative...

VP Osinbajo to deliver lecture on Boko Haram at Harvard University

The Vice President Yemi Osinbajo will continue the global campaign against Boko Haram insurgency in a lecture he would deliver at the Harvard University, Boston, in the U.S. on Thursday. A statement issued by the Vice President’s spokesman, Mr. Laolu Akande, on Thursday, said the lecture at the Harvard’s “Nigeria in the World” seminar is at the invitation of the university. It added that Prof. Osinbajo would be talking on “Destroying Boko Haram and the Rebuilding of Nigeria’s...

Tijani Sheriffdeen: Tackling Corruption In Nigeria From The Foundation

Youths are claiming they are no longer the leaders of tomorrow, that they are the leaders of today. Their claims and agitations have only succeeded in falling to the deaf ears of the ruling class, who are arguably fathers and grandfathers. It seems there is a reason for them not paying attention to the wails of these youths; does a father stop a child from leadership responsibilities in the family when he or she is old enough to put...

N47.6bn fraud: Absence of prosecutor, witness stalls Tompolo, Akpobolokemi’s trial

The scheduled trial of an ex-Niger Delta militant leader, Government Ekpemupolo, alias Tompolo, for an alleged fraud of N47.6bn was stalled on Thursday due to the absence of the prosecutor, Mr. Festus Keyamo. Keyamo wrote to the Federal High Court in Lagos, where the trial was taking place, to ask for an adjournment on the grounds that his main witness was not available for Thursday. Consequently, the trial judge, Justice Ibrahim Buba, adjourned the case till December 13...

FG to send 2017 budget to NASS next month.

Minister of State, Budget and National Planning, Mrs. Zainab Ahmed, on Wednesday hinted that barring any interference, the 2017 budget will be sent to the National Assembly for deliberation next month. Ahmed made the disclosure while addressing State House Correspondents after the Federal Executive Council, FEC, meeting which was presided over by President Muhammadu Buhari at the Presidential Villa. Speaking on the performance of the 2016 budget, the junior Minister noted that the budget had recorded 50 per cent implementation, especially...