FG hints at frustration with U.S. shale oil

By Patrick Andrew Abuja

Th e federal government has expressed serious concerns over increasing output of United States’ shale oil, low oil price environment, alternative energy sources, new frontiers and militancy in the Niger Delta. Th e Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who represented President Muhammadu Buhari, at the 5th Triennial National Delegates’ Conference of the Association on Wednesday in Abuja, said Nigeria is challenged by the untoward activities in the oil and gas international market. According to the President, the global impact of shale gas on the natural gas industry was imminent with the energy policy shift in the United States and commercial quantities discovery in China, Australia and North Africa regions.

“Closer home, new exploration plays have been and will continue to be discovered in neighbouring West African countries and East Africa, with many producing countries already reviewing their fi scal terms to capture profi ts and increase government take”, he said. Further, he praised the association noting that it must continue to collaborate with the federal government to overcome militancy, change status quo and policies to meet the changing dynamics of the times in the Oil and Gas Industry.

Th e 5th Triennial National Delegates’ Conference of the Association has the theme: “Emerging Trends in the Oil and Gas Industry and its impacts on DSP Offi ce Labour Movement in Nigeria”. Th e minister also dismissed assertions that the federal government has entered into agreement with an indigenous fi rm to concession the Port Harcourt refi neries to the fi rm. Meanwhile, the NNPC Group Managing Director, Dr. Maikanti Baru, said despite the low oil prices and decreasing reserves, the NNPC was ready to work with the union to ensure effi ciency and create an enabling environment for the Oil and Gas industry in the country

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