08 April 2014, Lagos – NIGERIA has started to witness the negative effect of shale oil exploration in the United Stated of America, USA, and other parts of the world, as Nigeria’s crude oil export to North America dropped by 91.31 per cent in one year.
Specifically, data obtained from the Nigerian National Petroleum Corporation’s, December 2013 Petroleum Information, disclosed that Nigeria exported 1.438 million barrels of crude oil to North America as at December 2013, down by 15.111 million barrels in December 2012.
North America accounted for 22.19 per cent of Nigeria’s total crude export by December 2012, but it dropped to 2.23 per cent by December 2013.
Prior to the decline, the US was the highest buyer of Nigeria’s crude, purchasing 14.279 million barrels in December 2012, thereby, accounting for 19.15 per cent of Nigeria’s total crude export and 86.28 per cent of total crude export to North America.
By 2013 end, the US dropped to the 10th highest importer of Nigeria’s crude, with 1.438 million barrels.
The NNPC report stated that by December 2013, Europe was the highest importer of Nigeria’s crude, accounting for 47 per cent of Nigeria’s total export; followed by Asia and Far East, accounting for 26 per cent; while Africa accounted for 12 per cent of Nigeria’s crude export.
South America accounted for 10 per cent of Nigeria’s total crude export, while Oceania/Pacific and North America accounted for three per cent and two per cent respectively.
India emerged the highest importer of Nigeria’s crude in December 2013, with 13.086 million barrels, followed by the Netherlands with 9.866 million barrels, and France4.497 million barrels.
Nigeria exported 4.869 million barrels of crude to Brazil in the period under review; Spain 4.6 million barrels, while 3.895 million barrels of crude oil was exported to South Africa. Others are Cote D’Ivoire 1.898 million barrels; Thailand 1.897 million barrels, and Australia 1.862 million barrels.
KPMG Professional Services had a couple of days ago, warned that the discovery and exploration of shale oil and gas across the globe will put Nigeria’s economy at serious risk. This is unless the country is able to churn out policies that will bring about increased investment in the oil and gas sector and ensure stable power supply.
The Global Head, Energy and Natural Resources Practices, KPMG, Mr. Michiel Soeting, disclosed that Nigeria’s ability to finance its budget will be greatly threatened, unless it put in place measures that will grow its crude production capacity, diversify the economy, as well as build additional crude oil refineries, saying that these will significantly reduce the effect of Shale oil discovery on the country’s revenue.
According to him, Shale oil discovery has created a lot of opportunities for international oil companies, IOCs, and has brought about stiff competition among crude oil producing countries.
He also notedthat oil producing countries will soon be in fierce competition with themselves to attract investments and market their crude.
*Michael Eboh – Vanguard