Shale oil production by U.S., others worries Nigeria

The surge in the price of crude oil and shale producers in the United States of America are creating fresh concerns for the Federal Government.

Briefing the press in Abuja, yesterday, ahead of the Nigerian International Energy Summit billed to commence on Monday, the Minister of State for Petroleum Resources, Timipre Sylva, noted that the country is not gaining from the current boom in crude oil.

He expressed worry at the low level of production in the country, adding that the country is doing everything possible to meet up with Organisation of Petroleum Exporting Countries (OPEC) quota.

According to him, the country will prefer a situation where the price is not too high and too low to ensure that the shale producers do not have an edge.

Sylva also noted that the country’s dependence on import of petroleum products meant that high oil price would erode gains from the increasing price.

Crude oil had risen to over $105 per barrel as tension between Russia and Ukraine escalated. But the price later dropped to below $100.

Disclosing that a number of deals would be signed at the floor of the energy summit, Sylva said over 5,000 participants from about 53 countries would be attending the summit.

According to him, the event covering 4,182m2 exhibition space occupied by about 60 exhibitors and five country pavilions will have about 11 plenaries, seven breakouts, four special presentations and three cocktail receptions.

Sylva said: “The objective of the summit from inception is to deliver the biggest and best African Petroleum Technology and Business Conference that will be the definitive platform, not just for Nigeria, but also for Africa to engage the global energy community. I believe that we have delivered on that with every edition.

“Some of our confirmed international guests include Minister of Energy, Kingdom of Saudi Arabia, Abdulaziz bin Salman Al Saud; Namibian Minister of Mines and Energy, Tom Alweendo; Minister of Mines and Hydrocarbons, Equatorial Guinea, Gabriel Obiang Lima and Minister of Hydrocarbons, Democratic Republic of Congo, Aime Ngoy Mukena. The global energy leader and the Secretary General of OPEC, Dr. Mohammad Barkindo, has also confirmed his attendance.”