The Nigerian National Petroleum Corporation (NNPC) predicted on the 9th of June 2021 that oil price could reach a high of about $200 per barrel, owning to the withdrawal of many banks and major International Oil Companies (IOCs) withdrawal from funding critical projects in the industry. This has lead to a supply shortage and a huge upsurge in the amount of oil sold in the market. The corporation stated that with the accelerated push to migrate and adopt a low carbon alternative(s), only time can tell if the decision taken was hasty by these big companies or if they made the right decision.
Mr Bala Wunti, the General Manager, National Petroleum Investment Management Services (NAPIMS), a subsidiary of NNPC, aid at the Nigeria International Petroleum Summit (NIPS), in Abuja, that the Impact of the current decision to stop investing in oil will start to manifest in about five years, shooting oil price to about $200. According to him despite the diminishing investment in fossil fuels, demand for gas will increase as a part of the energy mix, and this will continue to power many businesses. He further predicted a growing power demand, saying that by 2050, the power consumption globally is going to grow from the current 27 terra joules of electricity to about 54 terra joules which is twice the current consumption. Thus, gas is going to be a destination duel as it will be there in the forefront pronounced due to its many advantages. Also, as Nigeria is a gas country, that recently entered into the ‘Decade of Gas’, it means the stage is now set and Nigeria can take advantage and position itself for the future.
Source: Emmanuel Abbah
This Day News.