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Stakeholders seek exploitation of renewable energy for electricity

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electricity (energy)

Some industry players have described renewable energy as the fastest growing source of power in recent times, hence the need for stakeholders to exploit opportunities it offers.

Some members of The Petroleum Club, Lagos, at their yearly Guarantors’ Dinner, were of the opinion that fossil fuel for them is out of options because the renewable, most especially, solar and wind, have been making a lot of impact and for them, new avenues have to be exploited as well as new policy direction in that regard.

The Chief Executive Officer of Reservoir and facility Solutions of Nigeria, Oluseyi Afolabi in her lecture titled “Survival Strategies in a low-price regime: A Case for Cost Reduction, Optimisation, and Operational Efficiency in the Nigerian Oil and Gas Industry” said the cost of generating a kilowatt of solar by analysis is seven cents as compared to the 12 cents for similar generation of electricity from gas powered turbines.

The cheap cost of production, she noted, is part of key determining factors that would flatten oil out in terms of global demand by 2030 and by 2040, as energy supply to the world would be most diverse.

According to the Former Executive Director, Commercials, Mobile Producing Nigeria, “the renewables are going to take a larger impact in the world because it is the fastest growing source of energy and as such, people are getting more concerned about their environment.”

Afolabi explained further that by then, consumer price would likely be the key determinant in the energy choice, and hence the need for industry players in the oil and gas sector to exploit cheaper cost of production mechanisms in other to be in business and competitive.

She was however sceptical if fossil fuel would be phased out totally, saying that if Europe were to convert all their transportation to electricity, they would need to charge those cars most likely with gas generated electricity.

The former Mobile Executive believes that even the disposal storage packs for solar batteries would in the future pose some health hazards too and that if cost of production of fossil fuel is looked into, it would continue to remain the cheaper source of energy.

Some members of the club supported her view during the interactive session, saying there is still a lot of mileage to enjoy from fossil fuel, and that if coal hasn’t gone out of business then oil is not likely to go out soon, adding that as long as the International Oil Companies (IOCs) are in business, they must keep following them.

Afolabi advised players to adopt some cost reduction mechanism like auditing, rigorous cost driver analysis, employee cost restructure among others, so as to ensure low production cost because the days of expensive oil are gone.


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