A Review of the Nigerian Energy Industry

Seplat CEO predicts crude oil prices will rise again

Austin Avuru 107 November 2014, Lagos – As the price of crude oil blend traded at New York Mercantile Market NYMEX and London International Petroleum Exchange Market, IPEX, drops from $100 to below $84per barrel, the Chief Executive Officer of Seplat Petroleum Development Company, Mr Austin Avuru has advised Nigeria and other oil producing nations not to panic as oil prices will soon ramp up again.

Avuru who spoke in Lagos while evaluating the Energy Outlook to 2040 issued by ExxonMobil, yesterday explained that the oil producing nations should be conversant with the cyclic slope in the prices of crude that moves up and down, adding that fossil fuel produced from conventional hydrocarbon resources would continue to be relevant in energy mix despite the discovery and development of Shale gas which now constitute a threat to producing Nations.

Responding to the slowing of the Chinese economic growth in the context of a crash in the United State demand for light, low sulfur (sweet) crude grades from Africa (including Nigeria), he noted:

“Geography is shifting energy mix while demand and supply equilibrium have not changed much .The Exxon Mobil Energy Outlook suggests that there should have been a supply deficit and prices might have gone far above $100, if Shale gas and oil have not emerged”.

He commended the advent of technology, pricing, that controls production of unconventional oil and gas, adding that there is still enough oil and gas to satisfy the growing demand through 2040.

The Boss of Seplat Avuru, Petroleum Geologist with 34 years industry experience is optmistic that no matter the cylic trend oil prices will not drop to below $60 per barrel, adding that with time, oil prices will increase to $100 per a barrel and above.

“As I am sitting here, as far as that analysis goes, I don’t see a glut in the market that will lead to a $60 price, nor a demand surge that will take us above $100,” he added.

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