Nigeria’s Oil revenue rise by N188.71bn: should we celebrate or worry? – Hello to all my energy enthusiasts out there! 🛢️🌍
You won’t believe the latest scoop in Nigeria’s oil sector. August was a good month, but should we be celebrating just yet?
📈 The Rise in Earnings
August brought some good news for Nigeria’s oil sector. The country saw its revenue from crude oil sales (excluding condensates) jump by a whopping N188.7bn! And why is that? A modest increase in oil production. Both international and local operators in the sector had their hands full, and they delivered.
For numbers geeks like me, here’s a bit of a breakdown:
- Nigeria pumped out 36,615,125 barrels of crude oil in August. In comparison, July saw a production of 33,761,767 barrels. So, we’re talking about a sweet increase of 2,853,358 barrels. 📊
- To add some global perspective, the average cost of Brent, the global standard for crude, was $86.16/barrel in August 2023. And according to Exchange Rates UK, the average exchange rate for the USD in Nigeria in August hovered around N767.6. With this, Nigeria’s oil earnings rose by about N188.71bn in the review period. 💰
🌏 OPEC’s Say on the Matter
OPEC’s fresh-off-the-press monthly oil market report for September 2023 had some revelations. The oil output from Nigeria in August surged to 1.181 million barrels per day, up from 1.081mbpd in July. But wait, there’s a twist. Even though August saw a rise, it still didn’t beat the 1.249mbpd record set in June.
And if we look at a broader picture, the country averaged 1.144mbpd in the second quarter of 2023, which, unfortunately, was lower than the 1.277mbpd output recorded in the previous quarter.
😟 The Concerns on the Horizon
Despite the rise in August, Nigeria’s oil output has been on a bit of a rollercoaster lately. The energy community has been buzzing with calls for increased efforts to amp up oil output. More output means more foreign exchange for the country, after all.
Billy Gillis-Harry, the head honcho of the Petroleum Products Retail Outlets Owners Association of Nigeria, shared his concerns with me. He pointed out that the current drop in oil output is a red flag. The goal was to aim for two million barrels of crude oil production per day, and we’re far from it. With new oil discoveries in places like Nasarawa and Bauchi, he’s hopeful for a positive turn.
🚫 The Bigger Challenge: Oil Theft
Clement Isong, the Executive Secretary of the Major Oil Marketers Association of Nigeria, brought up a pressing issue: oil theft. He urged the Federal Government to step up their game. Oil theft isn’t just affecting Nigeria’s OPEC production quota but also causing a shortage of dollars needed for imports.
His concern? The lack of liquidity in the I&E (Importers and Exporters) window. “To buy fuel, it costs between $25m to $30m. But the funds aren’t there. The security issues in the Niger Delta need to be addressed to ramp up daily crude oil output,” Isong added.
💡 Wrapping it Up
While the rise in August is promising, the path ahead for Nigeria’s oil sector is filled with challenges. From security issues to new discoveries, it’s a dynamic landscape. The call to action is clear: curb oil theft, boost output, and keep the energy community engaged and informed.
Stay tuned for more updates from the world of energy. Till next time! ⛽🌟