USA dumps Nigeria's crude oil for shale oil
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Posted by Felix Okoli on Friday June 6, 2014 at 11:55:21:
Some had thought that the USA will keep buying Nigeria's oil for at least the next 50 years when our oil reserve was expected to have been finished but as it is now, improvements in technology has made the US a bit more self dependent on oil with the discovery of Shale oil.Share oil is a form of synthetic oil that is produced by extracting oil from oil rocks through a chemical process and afterwards refining and upgrading it to meet industry standards that can be used to replace petrol. The US has been using their technology and finances to pursue shale oil exploration with the hope of getting less dependent on crude oil which has for several years being tightly controlled by OPEC, a group of oil exporting countries that influence the price of oil.There had been reports released that mentioned about the negative effects the US Shale oil revolution will have on Oil producing countries like Nigeria and it seems it's already happening.About 2 days ago, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke disclosed to the public that the United States has stopped buying Nigeria's crude oil exports and this is most likely as a result of their investments into shale oil exploration which is now proving successful. Did you get that? They've stopped buying Nigerian oil!The USA used to be the most popular client Nigeria has out of all the countries that normally purchase Nigeria's oil. The US has been a major buyer of our oil exports and lately, it so happened that Nigeria might now have to look to countries in Asia like China and within Africa to export her crude.The USA never really liked the group called OPEC since oil price increases influenced by OPEC has always mostly affected the USA being the largest importer of crude. With their success and growth in shale oil technology, they might soon become the world's least importer of crude, a position which is already being taken over by China.With the USA being less dependent on oil exports from countries like Nigeria, there seems to be no better time than during their recession to have made themselves a bit more oil independent.What does a country like Nigeria do when her biggest customer stops buying from them? Well, it's time to diversify her economy and become less dependent on oil.Prior to the discovery of oil, Nigeria used to make a lot of money from agricultural exports and had affordable manpower. Nowadays, everyone seems to be so lazy and more dependent on oil and politicians have fattened up themselves with large bonuses and allowances even after leaving office.It's high time Nigeria stops focusing on crude oil exports alone and focus on other things like agriculture, tourism, manufacturing and so on. There is still a lot of work to be done on electrical power generation.Will the USA's dumping of Nigeria's crude oil further depreciate the Naira? Oil exports to the USA have consistently remained Nigeria's largest source of foreign currency and now, it so happens that the major source has dried up.Nigeria might still be able to sell her oil to other growing countries and developing countries around the world but it's a sign that indicates that our over-dependence on oil reserves is not a wise move for the future.
Comments:
Some had thought that the USA will keep buying Nigeria's oil for at least the next 50 years when our oil reserve was expected to have been finished but as it is now, improvements in technology has made the US a bit more self dependent on oil with the discovery of Shale oil.Share oil is a form of synthetic oil that is produced by extracting oil from oil rocks through a chemical process and afterwards refining and upgrading it to meet industry standards that can be used to replace petrol. The US has been using their technology and finances to pursue shale oil exploration with the hope of getting less dependent on crude oil which has for several years being tightly controlled by OPEC, a group of oil exporting countries that influence the price of oil.There had been reports released that mentioned about the negative effects the US Shale oil revolution will have on Oil producing countries like Nigeria and it seems it's already happening.About 2 days ago, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke disclosed to the public that the United States has stopped buying Nigeria's crude oil exports and this is most likely as a result of their investments into shale oil exploration which is now proving successful. Did you get that? They've stopped buying Nigerian oil!The USA used to be the most popular client Nigeria has out of all the countries that normally purchase Nigeria's oil. The US has been a major buyer of our oil exports and lately, it so happened that Nigeria might now have to look to countries in Asia like China and within Africa to export her crude.The USA never really liked the group called OPEC since oil price increases influenced by OPEC has always mostly affected the USA being the largest importer of crude. With their success and growth in shale oil technology, they might soon become the world's least importer of crude, a position which is already being taken over by China.With the USA being less dependent on oil exports from countries like Nigeria, there seems to be no better time than during their recession to have made themselves a bit more oil independent.What does a country like Nigeria do when her biggest customer stops buying from them? Well, it's time to diversify her economy and become less dependent on oil.Prior to the discovery of oil, Nigeria used to make a lot of money from agricultural exports and had affordable manpower. Nowadays, everyone seems to be so lazy and more dependent on oil and politicians have fattened up themselves with large bonuses and allowances even after leaving office.It's high time Nigeria stops focusing on crude oil exports alone and focus on other things like agriculture, tourism, manufacturing and so on. There is still a lot of work to be done on electrical power generation.Will the USA's dumping of Nigeria's crude oil further depreciate the Naira? Oil exports to the USA have consistently remained Nigeria's largest source of foreign currency and now, it so happens that the major source has dried up.Nigeria might still be able to sell her oil to other growing countries and developing countries around the world but it's a sign that indicates that our over-dependence on oil reserves is not a wise move for the future.
Comments: