• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 day Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 2 hours Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 19 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 6 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 2 days As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 1 day The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 days Never Knew Gasoline Prices were this important!
  • 1 day Plants are Dying
  • 5 hours Emmissions up, renewables nowhere
  • 1 day We Are Better Than This
  • 3 hours Middle East on brink: Oil tankers attacked off Oman
  • 1 day (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
Alt Text

The Biggest Catalyst In Oil Markets Is Going Unnoticed

Mounting downward pressure on oil…

Alt Text

President Of African Oil Producer Sudan Toppled In Military Coup

Omar al-Bashir, long-term President of…

Alt Text

China-South Sudan Oil Deal Raises Red Flags

China’s Belt and Road Initiative…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Trending Discussions

Nigeria may be Next OPEC Member to Fall

The wealthiest man in Africa said he's secured billions of dollars in loans to help kick start the refinery business in Nigeria. OPEC-member Nigeria is forced to import most of its petroleum products because of aging infrastructure. Crude oil production in Nigeria has suffered in recent years because of militant campaigns and sabotage in the Niger Delta region. Last month, the rebel Movement for the Emancipation of the Niger Delta said it was launching a campaign to save Christianity in Nigeria. With militant group Boko Haram seeking to establish an Islamic state in a country divided along religious lines, poorly maintained refineries may be the least of Nigeria's concerns.

Nigerian business magnate Aliko Dangote said he's secured $4.25 billion in loans from domestic and offshore banks to breathe new life into the refinery business in Africa's largest crude oil producer. Nigeria exports about four times as much crude oil as it can handle with its existing refineries. Aging infrastructure and poor maintenance means Nigeria has to rely on imports to meet domestic oil requirements and Dangote said such a significant investment makes good business sense.

Related article: SOUTH SUDAN: More Good News for Oil Production

The U.S. Energy Department's Energy Information Administration said Nigerian oil production peaked at 2.6 million barrels per day in 2005. Since then, militancy and corruption have contributed to relative declines in production. Last week, Timipre Sylva, former governor of southern oil-rich Bayelsa state was arrested for fraud, adding to a steady stream of corruption charges filed against officials in the Niger Delta. Later this week, lawmakers said they will look into allegations that Nigerian Oil Minister Diezani Alison-Madueke is loosely connected to some shady deals involving Niger Delta oil blocks.  President Goodluck Jonathan, himself a former Bayelsa governor, said he would crack down on corruption, though recent developments show his efforts so far have lacked teeth.

Satellite images surveyed by Human Rights Watch show what appears to be "massive" destruction of the Nigerian town of Baga. Residents of the northern town told rights investigators that Nigerian forces razed the area after members of Boko Haram attacked a military patrol, leaving one Nigerian soldier dead. At least 183 bodies were uncovered after the attack. Last month, MEND said it would start a campaign in late May to save the Christian population of Nigeria "from annihilation" by bombing mosques and assassinating Muslim clerics. MEND in mid-April attacked an oil well on Bayelsa state that belonged to Royal Dutch Shell.

Related article: Kenya Aspires to be East Africa Hydrocarbon Transit Hub

OPEC said in its May report that Nigeria crude oil production was around1.73 million barrels per day, down roughly 5 percent from the first quarter of 2012. A long record of corruption, militancy and banditry has clouded Nigeria's oil prospects. Nigeria relies almost exclusively on its energy sector for export earnings and 75 percent of federal government revenue. While Dangote's recent initiative may be well-intentioned, it's a questionable investment given the Nigerian state of affairs.

By. Daniel J. Graeber of Oilprice.com




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News