U.S. competes with Nigeria in crude oil export destinations
• Price increase raises Shell’s income to $13 billion
• Chevron hands over hybrid library to C’River govt
Apart from losing the United States of America (U.S.A.) as a major crude buyer, there are indications that Nigeria may lose its crude oil export destination to the U.S., statistics from Energy Information Administration (EIA) has shown.
The EIA report released yesterday, showed that most European countries, including the United Kingdom, Netherlands, Italy, France, and Spain, which used to be Nigeria’s export destinations, have been taken over by the U.S.
India, Nigeria’s major export destination, which did not receive U.S. crude oil exports in 2016, received 22,000 bpd in 2017, tying with Spain as the country’s 10th-largest destination.
Nigeria saw a significant reduction in the U.S. imports of its crude in recent years due to shale oil production, which took effect in 2012.
This led to the fall in U.S. crude oil import from Nigeria, from 40 million barrels in 2007 to less the 6.17 million barrels in June 2013 barely a year after the advent of shale oil.
EIA, in a statement yesterday disclosed that the U.S. crude oil exports increased to an average of 1.1 million barrels per day (bpd) in 2017, adding that the country’s oil exports in 2017 were nearly double the level of exports in 2016.
It attributed the increased U.S. crude oil exports to the increasing production and expanded infrastructure.
However, increases in crude oil prices has boosted Royal Dutch Shell’s income from $4.8 billion in 2016 to $13 billion in 2017, according to the company’s annual report.
Brent crude sold for $65.09 per barrel yesterday while West Texas Intermediate (WTI) traded for $61.22 a barrel.
Besides, its onshore and offshore crude oil production in Nigeria increased from 258,000 barrels per day (bpd) to 266,000 bpd.
But the company said security issues, sabotage and crude oil theft in the Niger Delta impacted significantly on its operations in 2017.
Shell’s earnings on current cost of supplies also increased from $3.7 billion to $12.5 billion during the year under review.
Speaking on the report, Shell’s Chief Executive Officer, Ben van Beurden, disclosed that the company has raised its outlook for annual free cash flow to between $30 billion and $35 billion by 2020 at a brent crude oil price of $60 per barrel.
Meanwhile, Texaco Nigeria Outer Shelf Limited, a Chevron company, has handed over a hybrid library, located in West African People’s Institute Calabar (WAPI) to the Cross River State government.
Also, the company disclosed yesterday that 654 indigenes of the state have benefitted from scholarship programme initiated by Star Deep Water Petroleum Limited, another Chevron subsidiary with parties in the Agbami unit.
Chevron’s Director, Deepwater & PSCS, Richard Kennedy, said this during the handing over ceremony in Calabar of a hybrid library at WAPI.
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