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US Shuns Nigeria’s Oil For The First Time

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US Shuns Nigeria’s Oil For The First Time


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The search for alternative energy by the Barack Obama administration
in the United States of America (USA) has begun to take a toll on
Nigeria’s crude oil export as the US for the first time failed to import
a single barrel of crude oil from Nigeria.

This troubling
scenario experienced in the month of July, according to industry
watchers, may spell doom for the Nigerian economy.
Obama’s
vigorous search for alternative energy to drive the world’s largest
economy poses grave dangers for Nigeria whose economy is highly
dependent on revenue from oil.
Nigeria used to be the fifth largest exporter of crude oil to the US.
However,
experts said despite declining revenue, depleting foreign reserves and
pressure on the exchange rate, Nigerian economy remained “robust enough
to withstand the shock waves hitting the economy.”

While US crude imports rose by 569,000 barrels per day in July, imports of Nigerian crude fell to zero for the first time.
Data
obtained from the US Energy Information Administration during the week
showed that US imports rose to 7.623 million bpd up from 7.054 mbpd in
June.

Despite being at their highest since December 2013, imports are down from 8.058 mbpd in the same month a year ago.
Imports from Nigeria fell to zero in July, down from 89,000 bpd in June, all of which had gone to the US Atlantic Coast.
Nigeria
had remained remarkably upbeat despite lower-than-expected revenues,
low foreign investment and a weak infrastructure base.

While
President Goodluck Jonathan has rolled out a slew of robust, but
seemingly disjointed plans in several sectors of the economy, his
government has failed to articulate a stimulus package to deal with the
current public revenue crisis and record unemployment, or to weld the
plans into a coherent whole.

Reports indicated that before now,
the US has reduced crude imports from Nigeria by 91 per cent, putting
the country’s crude exports in disarray.
The US, which was
hitherto the biggest importer of crude from Nigeria with over one
million barrels per day, early this year imported an average of 100, 000
bpd till June 2014.
Data obtained from the Nigerian National
Petroleum Corporation (NNPC) revealed that by the end of last year, the
US dropped to the 10th highest importer of Nigeria’s crude, with 1.438
million barrels.
Specifically, Nigeria exported 1.438 million
barrels of crude oil to North America by December 2013, down by 15.111
million barrels in December 2012.
Obviously, Nigeria has started
witnessing the negative effect of shale oil exploration in the US and
other parts of the world. Prior to July, the country’s crude oil export
to North America had dropped by 91.31 per cent in one year.

North
America accounted for 22.19 per cent of Nigeria’s total crude export by
December 2012, but it dropped to 2.23 per cent by December 2013.
According
to an NNPC report, “Prior to the decline, the US was the highest buyer
of Nigeria’s crude, purchasing 14.279 million barrels in December 2012,
thereby accounting for 19.15 per cent of Nigeria’s total crude export
and 86.28 per cent of total crude export to North America. By 2013 end,
the US dropped to the 10th highest importer of Nigeria’s crude.
The
NNPC report stated that by December 2013, Europe was the highest
importer of Nigeria’s crude, accounting for 47 per cent of Nigeria’s
total export, followed by Asia and Far East, accounting for 26 per cent,
while Africa accounted for 12 per cent.

The report stated that
South America accounted for 10 per cent of Nigeria’s total crude export,
while Oceania/Pacific and North America accounted for three per cent
and two per cent respectively.
Also, India emerged the highest
importer of Nigeria’s crude in December 2013, with 13.086 million
barrels, followed by the Netherlands with 9.866 million barrels, and
France 4.497 million barrels.
Nigeria exported 4.869 million
barrels of crude to Brazil in the period under review, 4.6 million
barrels to Spain and 3.895 million barrels to South Africa.
Nigeria, Africa’s biggest crude exporter, depends largely on crude proceeds to service over 85 per cent of its budget.
The
present scenario, no doubt, compels President Jonathan and his economic
team to roll up their sleeves and come up with a way out for the
country’s economy.

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5 Comments

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5 Comments on "US Shuns Nigeria’s Oil For The First Time"

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juliet
Guest

are they serious na waa ooooooooo

Nkwazema
Guest

wel that is their problems after al the money is nt reaching d poor masses

chikodi
Guest

That is there problem

chinenyenwa
Guest
chinenyenwa

please they should settle this problem amicable

blessing
Guest

Why? what should have being the problem, but no matter what let it be settle peacefully and let peace and unity rain

wpDiscuz

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