MER Sept 2022

OPEC + Quota A missed window of Opportunity?

Current intrigues around the supply of oil in the global market are increasingly becoming complex. Though global failure to invest in upstream activities for some years portends grave danger for future energy needs, it appears that trend is about to change.

No thanks to the war in Ukraine. It seems UK will lead the rest of Europe to abandon the ‘religious’ pursuit of energy transition targets. Before now, it was OPEC and its allies that heralded this call to the chagrin of global advocates of energy transition.

Recent reports have it that the new UK Prime Minister, Liz Truss, will lead energy supply campaign differently and ignore the calls of her predecessor to follow the green path. Already, we’ve witnessed the re-categorization of natural gas as a green resource and approved for use. It wasn’t always the case.

As pressure mounts on the supply of energy, OPEC+ have continued to regulate oil production levels of its member countries in a bid to keep the price relatively high, a measure that G7 and the OECD countries have frowned at.

However, not all OPEC member countries have been able to cash in on this rare privilege. For some, it has been counterproductive. Africa’s largest oil producing nation is a good example.

At a critical time like this, Nigeria is bedeviled by oil theft, divestments, non-functional refineries, and a plethora of other challenges. The giant of Africa is unable to meet its supply quota from OPEC.

Despite bold strategies like a new petroleum law (PIA), a reformed stateowned company (NNPC Limited), and several other initiatives, the nation might not benefit from the present oil windfall before OPEC’s quota is slashed, or the oil market succumbs to pressure from geopolitics and a possible glut

This edition is a must- read.

You can read and download for free within a limited time.

Get your Free copy now.

[dflip id=”19422″ ][/dflip]