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

  • http://adasdalla this is a test message

    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!

  • http://www.indianagobowl.com/retro/ Air Jordans Retro

    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.

  • http://www.garycsc.k12.in.us/air.html Air Jordans

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

Related Posts

Recent Posts

Court Dismisses Corruption Charges Against Timipre Sylva

A Federal High Court, Abuja,on Thursday dismissed a 50-count charge bordering on alleged corruption against former Bayelsa governor, Timipre Sylva and six others. Justice Adeniyi Ademola, in a ruling, held that the charges as filed by the Economic and Financial Crimes Commission constituted an abuse of court process and the court lacked jurisdiction to hear the case. He further held that the charges were “frivolous and lacking in merit’’. Specifically, Justice Ademola held that...

Kogi Election: APC Group Endorses Abubakar Audu’s Son

The All Progressives Congress (APC) critical stakeholders and delegates from Kogi East Senatorial District have resolved that the late political icon and APC candidate in the November 22 governorship election that was pronounced to be inconclusive, Mr Abubakar Audu, be substituted with his son Mohammed Audu in the event that the party goes for fresh primary. This was contained in a communique read by Daniel Isah, the Kogi East Zonal Chairman at...

Huge Crowds As Pope Celebrates First Mass In Africa

Pope Francis held his first open-air mass in Africa on Thursday with huge crowds hailing heavy rains as "God's blessing" as they sung and danced in the Kenyan capital.  Thousands of people queued through the night braving torrential downpours to take part in the historic mass, the first celebrated by Francis on African soil. The 78-year-old pontiff received a tumultuous welcome as he arrived in an open-topped Popemobile, smiling and waving as...

Woman Who Made Bread Using Yeast From Her Vagina Ate The Bread

British Blogger Zoe Stavri whipped the Internet up into a frothy bread mix frenzy earlier this week, after writing about a sourdough loaf she'd begun to make from scratch, leavened with yeast from a vaginal infection. She sourced the yeast with the help of a dildo. Her first tweets on the subject chronicled her yeast making her dough rise — "IT'S ALIVE"! she wrote, in an acceptable use of all caps — and a blog post also documented...

Boko Haram Conflict Deadline ‘Unrealistic’, CCC To Buhari

Senior military, security and intelligence figures in Nigeria on Thursday questioned President Muhammadu Buhari's December deadline for an end to the Boko Haram conflict, calling it "unrealistic". The Centre for Crisis Communication, a research and advisory body independent of government, said the deadline was "not tenable" given the continued wave of bombings in the northeast. The CCC...

Reps Summon Aviation Minister, Stakeholders Over Sack Of Staff By Virgin Atlantic

Following the recent retrenchment of staff of Virgin Atlantic Airline, the House of Representatives on Thursday summoned the Minister of State in charge of Aviation, Hadi Sirika and relevant stakeholders to appear before its Committees on Labour and Productivity and Aviation with the view of resolving the issue amicably. The resolution followed the unanimous adoption of motion of urgent matter of public importance sponsored by the House Leader, Hon. Femi Gbajabiamila on the matter at plenary...

Drogba To Manage Chelsea

Former Chelsea  striker Didier Drogba says he has an agreement to return to the club once he finishes playing and wants it to be as manager. Drogba, who now plays in Canada, scored 164 goals in two spells with the Blues. “I want to give back to the club which has given so much to me. I have agreed that with the club directors,” the 37-year-old told BBC Africa. “Why not manager? Why not...

FG Moves To Amend Charges Against Orubebe

The scheduled commencement of trial in the case against former Minister of Niger Delta Affairs, Godsday Orubebe was stalled Thursday by the Federal Government’s decision to amend an earlier charge of four counts filed against Orubebe. Orubebe is charged with false asset declaration and acceptance of bribe totaling N70 million. The prosecution, led by Peter Danladi had on November 9, 2015 sought an adjournment for two weeks to enable it prepare its witnesses for trial.

I Am Kogi’s Governor Elect, James Faleke Writes INEC

The running mate to late Abubakar Audu, the candidate of the All Progressives Congress in Saturday’s governorship election in Kogi State, has asked the Independent National Electoral Commission, INEC, to declare him governor elect. James Faleke, in a November 26 letter to INEC Chairman, Mahmood Yakubu, insisted that under Section 187 of the 1999 Constitution, he was duly elected as deputy governor of Kogi State. While expressing sadness over the demise of his principal, Abubakar...

Senate Committee Gives Petroleum Minister Two Weeks To End Fuel Scarcity

The Senate Committee on Petroleum Downstream has given the Minister of State for Petroleum and the NNPC two weeks to end petrol scarcity in the country. The committee handed down this directive at a meeting with officials of the Ministry of Petroleum, NNPC and agencies in the petroleum sector. For nearly three weeks, there have been long queues at different petrol stations across the country; a situation that has defied solutions by previous administrations and...

Edo Lawmakers Walk Out Female Commissioner For Improper Dressing

Members of Edo State House of Assembly on Wednesday asked the Commissioner for Health, Aihamuwa Eregie, to vacate the House for improper dressing. Eregie was asked to leave the hallowed chamber during the presentation of the 2015 budget performance of the Ministry of Health. The Deputy Speaker, Bright Osayande (APC- Ovia North-East II), who raised the observation, said the commissioner was not properly dressed and should not be allowed to appear before the House. Adjoto Kabiru (APC Akoko-Edo), who concurred...

Northern Lawmakers Kick Against Birth Control, Says It Is Anti-Islam And A Direct Attack On Their Religious Beliefs

A member of the lower chamber of the National Assembly, Babatunde Gabriel Kolawole on Tuesday, November 24, moved for the motion titled "Need for the federal government to curb population explosion in Nigeria." Kolawole in his arguement urged the Federal Government to come up with a policy to check the alarming rate of population growth and to educate Nigerians on the importance of family planning through the National Orientation Agency (NOA). The Lawmaker based his arguement...

YBNL Boss Olamide Loses Dad

Top Nigerian rapper, Olamide Adedeji has announced the death of his father. Olamide who just released his 5th studio album, Eyan Mayweather, announced the sad news on his Instagram page on Thursday. While praying for the peaceful repose of his father, the YBNL rapper wrote a farewell message via his Instagram thus: “O God, who hast commanded us to honor our father and our mother; in Thy mercy have pity...

We Need N8.7billion To Effectively Fight Boko Haram – IG Of Police, Solomon Arase

Inspector General of Police, Solomon Arase says the Nigerian Police Force will require N8.7billion to effectively fight Boko Haram. Arase said this while speaking at an interactive session with members of the House of Representatives Committee on Police Affairs today November 26th. He told the house members that there was a N57bn outstanding due to the Nigerian police that was appropriated but has not been released till date.

27 APC Aspirants In Race To Replace Audu

Few hours after the All Progressives Congress (APC) opted for a fresh primary to fill the vacuum created by the death of its governorship candidate in November 21 polls in Kogi State, there were indications that no fewer than 27 aspirants are warming up to grab the party’s ticket. Electoral umpire – the Independent National Electoral Commission (INEC) has asked the APC to replace its late candidate for the supplementary election scheduled for December 5.

118 Shops Burnt Down In Jos Market

A raging night inferno razed 118 shops at the Kabong market in Jos North on Thursday morning, the News Agency of Nigeria (NAN) reports. A reporter, who visited the market, could not access the burnt section as some shops were still in flames. Others also had thick smoke billowing from them, making visibility very difficult. The actual cause of the fire could not be ascertained, but Mr Christopher Jama, Chairman, Kabong Market Traders Association,...

Declare Wada As Winner Of Kogi Election, PDP Tells INEC

The national leadership of the Peoples Democratic Party (PDP) has called on the Independent National Electoral Commission (INEC) to declare its candidate, Governor Idris Wada, as the winner of the November 21 governorship election in Kogi State. The party is also seeking the exclusion of the All Progressives Congress (APC) from the supplementary election slated for December 5. The INEC had declared the election inconclusive following the cancellation of the poll in 91 units across 18...

100 Women Die Daily In Northern Nigeria During Childbirth- UNFPA

Ms Ratidzai Ndhlovu, Nigeria Country Director of United Nations Population Fund ( UNFPA), says no fewer than 100 women die daily across Northern Nigeria during childbirth. She spoke on Thursday in Sokoto at a consultative meeting with the theme: “Accelerating the Reduction of Maternal Deaths in Northern Nigeria: The Role of the Traditional and Religious Leaders.” Ndhlovu decried the high maternal mortality figure, and stressed that collective efforts must be stepped up to redress the...

Police Officer Mistakenly Shoots Wife In Lagos

A police corporal attached to the Special Anti Robbery Squad (SARS) Ikeja, La­gos Police Command, on Tuesday night, mistaken shot his wife in their resi­dence at Egbeda area of Lagos. Investigation revealed that the officer, who is described as one of the best officers of the command, forgot to put the pistol on safety catch when he got home at about 10.00pm. Excited to see her hus­band, the deceased hugged her husband and also helped...

Man Sentenced To Life In Prison For Raping His 14 Year Old Niece

Fumanekile Zibi, 37, from Butterworth, South Africa, was yesterday, November 25, convicted and sentenced to life in prison for 4 counts of rape of his 14-year-old niece in 2013.

Senate Confirms Nomination Of Ahmed Kuru As AMCON MD

The Senate has confirmed the nomination of Ahmed Lawan Kuru as Managing Director of the Asset Management Corporation of Nigeria (AMCON). Recall that Kuru was appointed by President Muhammadu was appointed to replace Mustafa Chike-Obi after Buhari dissolved the executive team of the Assets Management Corporation of Nigeria (AMCON) Kuru is formerly the Group Managing Director and Chief Executive Officer of the defunct Enterprise Bank Limited. He started his banking career with the old Habib...