Shale production pushes U.S., Nigeria’s trade volume down to $4.9 billion
Nigeria and the United States bilateral trade has decreased from the $9.9 billion it recorded as at December 2014 to $4.9 billion by the end of 2015, due to the shale oil evolution.
Specifically, the United States imports from Nigeria also dropped from $3.8 billion to $1.7 billion while export also decreased to $3.2 billion from $5.9 billion.
This decrease has been attributed to the reduction in the U.S crude oil importation from Nigeria due to its shale exploration.
According to Nigeria Export Promotion Council (NEPC), Nigeria-US trade is dominated by energy and energy related products (oil and gas) while other sectors contribution remained insignificant.
It noted that agricultural produce exports to the US continued to increase over the years.
Data from the United States Energy Information Administration (EIA) showed that Nigeria was the least of the top 15 crude oil exporters to the world’s number one economy as at October 2015.
Monthly data on the origins of crude oil imports in October 2015 from the EIA showed that Canada exported more than one million barrels per day to the United States.
Top five exporting countries accounted for 81 per cent of United States crude oil imports in October while the top 10 sources accounted for approximately 94 per cent of all U.S. crude oil imports.
The top five sources of U.S. crude oil imports for October were Canada (2.9 million barrels per day), Saudi Arabia (983,000 barrels per day), Venezuela (748, 000 barrels per day), Mexico (686,000 barrels per day), and Iraq (375,000 barrels per day).
The remaining top 10 sources, in order, were Ecuador (230,000 barrels per day), Colombia (200, 000 barrels per day), Brazil (181, 000 barrels per day), Angola (181,000 barrels per day), and Kuwait (170,000 barrels per day).
Total crude oil imports averaged 7,121 thousand barrels per day in October, which was a decrease of 101 thousand barrels per day from imports during September 2015.
Canada remained the largest exporter of total petroleum to the United States in October; exporting 3,401 thousand barrels per day. The second largest exporter of total petroleum was Saudi Arabia with 983 thousand barrels per day
The EIA’s U.S import document showed that Nigeria export only 37,000 of crude to the U.S in October last year; September, 57,000.
According to the United States Trade Representative, Nigeria is currently U.S 35th largest goods trading partner with $18.2 billion in total (two way) goods trade during 2013. Exports totaled $6.5 billion and imports were $11.7 billion. The U.S. trade deficit with Nigeria was $5.2 billion in 2013.
U.S. imports from Nigeria totaled $11.7 billion in 2013, a 38.3 per cent decrease ($7.3 billion) from 2012. Nearly all of U.S. imports from Nigeria was oil.
The five largest import categories in 2013 were: mineral fuel (oil) ($11.6 billion), cocoa ($29 million), Special Other (returns) ($21 million), food waste ($9 million), and art and antiques ($5 million).
U.S. imports of agricultural products from Nigeria totaled $52 million in 2013. Leading produce was: cocoa beans ($21 million).