‘The world is rapidly moving towards an age of cleaner sources of energy’

CHIKEZIE NWOSU is the Chairman, Society of Petroleum Engineers (SPE) NIgeria Council. In this interview with Frank Uzuegbunam, Editor, West Africa Energy Intelligence he talks about the forth coming 18th Oloibiri Lecture Series and Energy Forum amongst other issues. Excerpts:

What are the consideration behind the Annual Oloibiri Lecture Series and Energy Forum?

The SPE OLEF is an annual lecture series focused on contributing to oil and gas policy development of Nigeria in commemoration of the first oil well drilled in Nigeria by Shell Darcy at Oloibiri, in Ogbia, Bayelsa State in 1956. It has become a forum where SPE NC brings together the key industry players from policy / legislature, regulatory / federal executive, investors, operators, service companies etc. to discuss on topical issues in the oil and gas industry, with a view to influencing the right policy direction to enable the growth of the industry and the Nigerian economy, thereby impacting positively on the all Nigerians.

Looking back from the inception of this annual dialogue, what are the tangible benefits of this initiative you can relate with?

This is the 18th edition of the SPE OLEF series, and from the first edition the expansion into Deep Water, marginal fields policy, local content policy, the Gas Master Plan, Fiscal policy, cost effectiveness challenges in the Nigerian business environment, gas flaring policy, Regulations and transparency, energizing the full gas value chain (from producers to end users), amongst other critical topical issues, have helped to shape current and emerging policy directions in Nigeria.

Of note is the Ministry of Petroleum Resources consolidation of a lot of these issues into the ‘7 Big Wins’ policy document that is being driven with such energy and passion by the Honorable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, with the support of the GMD NNPC, Dr. Kachalla Maikanti Baru and the heads of parastatals within the Ministry of Petroleum Resources.

The major challenge is the stability and sustainability of these policies beyond the term of office of the key drivers, and this is where SPE and similar professional organizations like NAPE, NMGS, NSE, NAE, PETAN, OGTAN etc. can play a major role.

How has Society of Petroleum Engineers (SPE) a global professional association impacted the Nigerian oil and gas sector generally?

The SPE is a non-profit and apolitical professional organization, regulated by international best practices through the SPE International (established in 1957). We are therefore in a unique position to provide unbiased advice to the authorities for the better good of Nigeria, without the accusation of working in our own, or anyone else’s, personal interest. In addition, we provide an international perspective, through both our relationship with SPEI, but especially through a lot of our members who have many decades of experience working internationally. Of recent, as noted, many policy directions the Nigerian Government have taken are supported either indirectly by SPE NC or directly through our members who consult for both the National Assembly and the Federal Executive.

This international perspective is perfectly balanced with our local knowledge and provides a powerful tool to influence and support Government policy. Of note is our ability to attract foreign direct investments (FDIs) to Nigeria through our annual flagship event, the SPE Nigerian Annual International Conference and Exhibition, which has been a resounding success in bringing the World to Nigeria.

In line with this, the very successful Nigeria International Petroleum Submit (NIPS) championed by the Honorable Minister of State for Petroleum Resources, and held from 18 – 22 February in the ICC Abuja, had SPE NC Resource persons supporting this event.

Within the country, we continue to provide world class courses at heavily subsidized rates (sometimes entirely free) through our Distinguished lecture series (about 10 a year), monthly Technical sessions across the five sections in Nigeria (Abuja, Lagos, Port-Harcourt, Benin & Warri), short courses by our most experienced members, a Professional Development program for our ‘members in transition’ and an annual Students Technical Symposium & Exhibition (STSE – hosted by the Nile University of Nigeria, Abuja from 15 -17 March 2018).

These courses cover technical and commercial areas in the oil & gas business, but also ethical and strategic leadership courses to prepare the next generation of practitioners in the industry for the challenges ahead.

We also have embedded in SPE, the Committee of Heads of Petroleum Engineering Departments (CHPED) which is rebuilding the curriculum for Petroleum Engineering in Nigerian Institutions, in collaboration with the Nigerian Society of Engineers (NSE) and as directed by the Council of Registered Engineers (COREN), to ensure graduates of Petroleum Engineering are ‘industry-ready’.

We are also socially responsible through our various charity events across all our sections, outreach programs in primary, secondary and tertiary institutions that teach about the responsible uses of Energy.

Finally, SPE NC is collaborating with the NCDMB to create an indigenous R&D environment and culture, which will ensure technology adaptation (utilizing our vast local resources) and innovation keep Nigeria at pace with, or ahead of, the fast-changing world of technology.

What make the theme of OLEF 2018 relevant at this time?

In line with our well-established tradition, this year’s SPE OLEF is themed along a critical and topical issue ‘’The Nigerian Oil Industry in a World of Changing Energy Supply: Are we prepared?’

It has become clear that, with anticipated growth in energy demand, the world is rapidly moving towards an age of cleaner sources of energy. For fossil fuels, this will mean a greater reliance on gas and less reliance on oil and, especially, coal. In addition, hydroelectric and gas powered cars will replace diesel engines and, with time, gasoline engines.

Add to this the growing investments in renewable sources of energy such as Solar and wind, and it becomes evident that Nigeria must rethink (or rejig) its energy policy to solidify on the gains in the oil & gas industry (the 7 Big Wins), and leverage on these learnings to prepare for an energy mix that will become less reliant on the more polluting fossil fuels.

There are many opinions on how long reliance on fossil fuels will last- many of these opinions are predicated on the huge remaining resources of oil and gas. However, one must note the oft quoted statement that ‘the stone age did not end because mankind ran out of stones, and the oil age will end long before we run out of oil’. The pressure from the next generation of leaders will drive technological advances that will result in less reliance on environmental damaging energy, and we (Nigeria) must be ready now.

Fate has played a major role in ensuring that we can stay ahead – abundant energy from the sun, wind energy in many Northern parts of the country and an estimated 190Tcf of gas (and prospective resources that could be as high as 600Tcf),

What do you see in the future for SPE and the Oil sector in Nigeria in the few years you have lead the society?

The SPE will continue to play a strong role in policy direction and execution through ensuring that the outcome of its engagements are well documented and presented to the authorities, encouraging its members to provide the expertise in their field/s to Government either through consultancy or service, provide forums for bringing the world to Nigeria and Nigeria to the world, collaborating with Government agencies in such areas as indigenizing R&D capacity and capability, supporting the provision of pedagogical aids to Universities and Training Institutes, ensuring the curriculum for PE & Geosciences and related disciplines in the University delivers industry-ready graduates and supporting the strategic and ethical leadership of the next generation of entrepreneurs, employers and workers in the energy industry. All aligned with the ‘7 Big Wins’.