An expert in the energy industry, Mr. Israel Aye, has cautioned that recent developments in the global energy sector requires “new thinking” for Nigeria to survive economically.
In a paper titled; “The Nigerian Petroleum Industry: From Decline To Growth And Prosperity”, presented during a capacity building programme for a select group of journalists, Aye said the energy mix have continued to adjust, driven by technology and environmental concerns.
Citing “new upheavals” that has necessitated new thinking in the nation’s energy sector; the Senior Partner, Energy And Commercial Transactions with Primera Africa Legal said “the United States is turning into the undisputed global leader for oil and gas.
“Solar PV is on track to be the cheapest source of new electricity in many countries; China is changing energy landscape; moving rapidly to gas and renewables”; and that “the future is electrifying, spurred by cooling, electric vehicles and digitalization”.
While noting that Nigeria’s oil and gas reserves were witnessing a steady decline due to underinvestment, he said “about $14 to $17 billion is required to ramp up oil production to our national aspiration of Three million barrels per day”, adding that there was an urgent need for increased investment in the sector.
According to Aye, most of the reforms so far introduced have suffered setbacks, and warned that Nigeria must “avoid the costly mistakes by some nations, citing Venezuela and Indonesia as examples which have found themselves in surprising slumps.
He said Nigeria must avoid some common traps by ultimately remaining competitive, as well as making herself a preferred investment haven, adding that enabling policies and legislative frameworks were fundamental for maximizing the nation’s hydrocarbon resources.
