Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Nigeria frets over US oil discoveries

24 June 2013, 14:06

Lagos – Nigeria is worried about the effect that the United States’ discovery of more shale oil will have on Nigeria's oil revenue.

This follows a report by the Energy Information Administration (EIA), the Energy Department’s statistical arm of the United Sates government, showing domestic crude oil production from shale exceeded imports for the first time in 16 years. The EIA data indicated that imports to the US from Nigeria tumbled to a record low in February.

The Nigerian National Petroleum Corporation (NNPC) raised concern over the development, saying it posed a great concern to the country and other African oil producers.

Omar Farouk, General Manager of Media Relations: Group Public Affairs, said the countries risked a situation where the United States could venture into territories Nigeria was currently supplying.

He feared America was going to offer to sell oil to some countries at marginally higher price which those markets will accept.

“We risk a situation where, in the first place, we will lose our market in America. But beyond that, we also risk a situation where America might also want to find a market outside. And that market may also be a market that Nigeria is selling to,” said Farouk

Farouk explained that the increased production of shale oil in the US had particularly affected imports from Africa, which typically produce lighter grades of oil similar to the North American blends.

He added that with the volatility in Nigeria’s oil production, many countries might want to go into agreements with the US on crude oil supply.

“The reason is because they know that if they go into agreement with America, the chances of the oil companies there declaring are very slim, and they are assured of guaranteed supply with more flexibility,” said Farouk.

The Nigerian economy is heavily dependent on the oil sector, which accounts for more than 95 percent of export earnings and about 40 percent of government revenues.

– CAJ News


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...