Wednesday, June 15, 2011

Elevating Oil, Gas Sector Above Projections

10 June 2011


Oil and gas policies

Coming from the Niger Delta and from the state where oil was first discovered in commercial quantity, there are great expectations from Mr. President's new administration, not only to increase the economic benefits derivable from the sector, but also to assuage the yearnings of the host communities in having a greater share of the oil wealth.

Nigeria's current crude oil reserves is put at about 35 billion barrels and with production capacity of 2.6 million barrels per day, it is the world's 12th largest supplier of crude oil. The country also ranks 7th globally in terms of proven gas reserves with 187 trillion cubic feet, tcf. With about 600tcf additional undiscovered potential, analysts say Nigeria could easily be in the world's top three in gas reserves.

However, despite the abundant resources, Nigeria remains one of the less developed and poorer countries of the world, as successive administrations failed to harness the rich natural and human resources to promote rapid economic development.

Corruption and mismanagement prevented past administrations from channeling these resources, into improving the dilapidated infrastructure and sustaining economic development.

Against this backdrop, President Jonathan cannot afford to fail Nigerians. Even as he has made some appreciable progress in the golden oil and gas sector, a lot more is expected from him because the majority of his programmes for the sector are still mere projections...

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