Agenda for energy industry in Gulf of Guinea
Discussants at the annual petroleum and energy conference of the Center for Petroleum Energy, Economics, and Law (CPEEL), University of Ibadan, have drawn attention to changes which need to be made by countries in the Gulf of Guinea in the face of ongoing changes in the energy world.
Discussants were unanimous in agreeing that “global energy demand will continue to rise because the quality of life will continue to improve and the number of individuals who use energy for their daily processes will continues to grow. On the other hand, security of supply will continue to be a challenge.
“In the face of this, policy makers have to grapple with challenge of creating a sustainable environment for future generations. Though renewable energy is gaining traction, fossil fuels continue to remain the major source of energy globally; with natural gas accounting for the most growth compared to coal, oil, renewable energy in the global energy mix.
Discussions and policies preferred in the conference which has the theme, “Transformations in the global energy industry: setting the agenda for Gulf of Guinea.”
The Gulf of Guinea is the north eastern part of the tropical Atlantic Ocean between Cape Lopez in Gabon, Nigeria, north and west to Cape three Points in Western region Ghana. The intersection of the Equator and Prime Meridian is in the gulf. The Gulf of Guinea region, along with the Congo River delta and Angola further south, are expected to provide around a quarter of the United States’ oil imports by 2015.This region is now regarded as one of the world’s top oil and gas exploration hotspots.
Speaking at the event, Professor Wumi Iledare, Chirota and Emmanuel Egbogah Professor and Director, Emerald Energy Institute, University of Port Harcourt, said the region needs more of vertical and horizontal integration in the oil and gas industry; and a comprehensive plan at making itself an industrial hub for the export of refined products and energy rather than crude oil only.
While stating that the countries in sub-Saharan Africa are at par with the states of the United States in terms of landmass, population size and possibly resources, he wondered why both regions are worlds apart in energy production, consumption and development, with sub-Saharan Africa lagging behind.
“We need to be able to starting thinking about energy production and consumption rather than crude oil production and export in the Gulf of Guinea.
“Nigeria needs an oil industry that has access to its own products. The engine that will grow Nigeria will rely on accumulation of gross capital investment, human capital development and diversification. Natural resource is only a means to grease the economy,” Professor Iledare said.
Other discussants at the events pointed to research and development, close interaction between the academia and industry, removal of subsidies, more investment in the oil and gas sector, encouragement of local companies in the oil and gas sector (as has been done by the local content act), as key to the development of the energy industry in Nigeria.
Other factors identified by discussants include, establishment and strengthening of government institutions that are empowered to enforce laws in the sector and the passage of the Petroleum Industry Bill.
While pointing out that the power generated locally in Nigeria is not even enough for one industry to use. There is need to further continue to deepen the reforms in the power sector and do better at channelling gas into power plants rather than flaring it, discussants said.
The conference was held at the University of Ibadan’s Trenchard Hall, University of Ibadan, it was attended by Ambassador Michel Arrion, Head of Delegation of the European Union to Nigeria, the Governor of Oyo State, represented by his Deputy, Chief Moses Adeyemo, the Vice Chancellor of the university, represented by Deputy Vice Chancellor Administration, Professor Emilolorun Aiyelari, among others dignitaries.
In his opening address, the Director of CPEEL, Professor Adeola Adenikinju, pointed out that though Ibadan is not the first place that comes to mind when oil and gas issues are discussed, the university is at the forefront of producing academics that have championed the course of the oil and gas industry in the region.
OBODO EJIRO