COVID 19 crippled oil prices, investment in Nigeria, Africa
.Harps on energy transition as OTC opens in Houston
By Eyo Nsima
The Petroleum Technology Association of Nigeria (PETAN), has narrated how the dreaded COVID-19 pandemic crippled oil prices, investment and businesses in Nigeria.
In his opening remarks at the ongoing Offshore Technology Conference, OTC, in Houston, Texas, the United States, obtained by The Daily, https://thedaily-ng.com, the Chairman, PETAN, Nicholas Odinuwe, said: “I warmly welcome you all to this year’s Offshore Technology Conference, the attendance of which was hampered by the COVID-19 pandemic.
“On behalf of the Petroleum Technology Association of Nigeria (PETAN), I warmly welcome you all to this year’s Offshore Technology Conference, the attendance of which was hampered by the COVID-19 pandemic.
After its crippling effects on our very existence and sources of livelihoods, we are reminded that the pandemic is still with us, so we urge us to be mindful and observe all safety protocols.
“Due to the pandemic, the oil and gas industry witnessed a fall in oil prices, which, thankfully is steadily rising. Other industry developments such as the energy transition from fossil fuels to renewables, net-zero emissions targets, not forgetting climate change, have all forced the industry to be resilient and awakened it to new opportunities presented by the new realities.”
He also, said: “Nigeria, leading the rest of Africa, declared has as its transition fuel, and a decade to its speedy development to meet the energy needs of its people as well as a source of export in the long run. To fast-track this ambition, the Ministry of Petroleum Resources and its attendant agencies with support from the private sector pushed and recorded the passing of the two-decade-old Petroleum Industry Bill into the Petroleum Industry Act 2021 to give clear fiscal directions and a more conducive environment for the growth of the oil and gas sector.
“Our theme this year – “Energy Transition and the future of Africa” was carefully chosen to reflect the current realities in the African Oil and Gas Industry. Much has been said about the future of the industry and its bright outlook if we can harness our natural and human resources.
“At PETAN, we are optimistic that if Africa plays her cards right, we can become the world’s major energy provider. But we must first change the narrative of being a poor ill-governed continent, with weak institutions.
“We are happy that seasoned industry experts have graciously accepted to be here and are eager to share their thoughts on the way forward for Africa.
“I, therefore, use this opportunity to sincerely thank the Minister of State for Petroleum Resources, His Excellency, Chief Timipre Sylva; the Managing Director of the Nigerian National Petroleum Limited, Mallam Mele Kolo Kyari; the Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote; and other dignitaries who always find time to be with us.
“In February, our 6th Sub-Sahara African International Petroleum Exhibition and Conference (SAIPEC) held successfully in Lagos, and our communique from contributions made at the events has since been released. We are here today to build upon the take-aways from SAIPEC.
“Our wealth of gratitude also goes to our Developmental partners, clients, supporters as well as members of the association for being here to echo our call for deepening local content in Nigeria and the rest of Africa.”
Similarly, in his remarks, the chairman of the conference, Chinedu Maduakoh, said: “The clean energy transition debate, no doubt, presents an opportunity for many African countries to chart sustainable energy systems of their own, but capital is an enormous mitigating factor which calls for strengthened regional action to address existing barriers and identify practical steps which regional governments can take to promote capital deployment and adopt the technologies best-suited for their region.
“Africa, home to one-sixth of the global population and accounting for less than 6% of the global energy consumption and 2% of cumulative global emissions according to reports, still has a comparative advantage and potential growth in the energy sector even as fossil fuels remain our enduring source of government revenue.
“However, bridging the finance gap, embracing new technologies, and replicating successful models in other sectors can help to further increase value-retention along the global value chain and deepen the process of economic integration in alignment with the African Continental Free Trade Area (AfCFTA) Agreement which has the potential to lift more Africans out of the vicious cycle of poverty and inter-generational dependency.
“The cross-border service integration as an enabler of project delivery in the African Oil and Gas Industry, we believe can enhance the process of value addition among African countries under the AfCFTA, which offers tremendous opportunities for economies of scale and regional value chains to smoothen the transition towards more competitive value chains such as gas as a transition for fuel and coal, wind and solar as part of Africa’s energy mix. This way, Africa will likely transform from a low-productivity, skills-intensive industrial and service hub that will foster a more competitive manufacturing sector, promote economic diversification and encourage African countries to accelerate development.
“It is my firm belief that Africa can choose innovative technologies for carbon capture, storage and use in an environmentally-friendly manner that will ultimately translate into access to reliable, clean and affordable energy for homes and industries. Consequently, I welcome you all to continue these very important discussions about the future of Africa in relation to the energy transition.”
