Oil consultant calls for PIB passage

A legal consultant in the Oil and Gas sector, Emeka Okwuosa has called on the Federal Government to ensure the immediate passage of the Petroleum Industry Bill (PIB), so as to cushion the effect of a decline in Nigeria’s crude oil export to the United States of America.

Okwuosa, who is the Managing Partner of Chancery Associates law firm, made the call following the recent evolution of Shale oil in the U.S, adding that Nigeria’s crude export stands threatened by this evolution.

He said that the U.S shale oil was no cherry news for Nigeria, given the fact that America is the largest importer of Nigeria’s crude oil, accounting for over 33 percent of the nation’s crude export.

According to the him, shale oil development will lead to a net fall. In Nigeria’s crude export to the US, with the attendant reduction in government revenue which will in turn have a multiplier effect on the economy.

“The recent evolution of shale oil in the U.S has led to a steady decline in Nigeria’s crude export from one million barrel per day in december 2009, to less than 352,000 barrels per day as at february 2013.

“Between 2011 and 2012, Nigeria fell from being the third largest supplier of crude oil to the united states, to the sixth largest after Canada, Saudi Arabia, Mexico, Venezuela and Russia in September 2011.

“In addition to this decline, there are indications that by 2014, the United States would no longer be importing crude from Nigeria, as president Barrack Obama has corroborated the US position on this.

“On a state visit to South Africa on June 29, 2013, Obama said “on the issue of Energy for example, frankly we don’t need energy from Africa because we are seeing oil production and natural gas production as well as clean energy production, all growing at a rapid rate in America” he said

According to Okwuosa, Obama’s statement in essence implies that America’s rules of engagement with Africa including Nigeria in the energy sector, is fast becoming a thing of the past, and this requires urgent address by government.

He however said there were myriads of palliatives which the Federal Government could employ to mitigate the impact of shale oil development in the nations economy.

“Following the shale oil revolution, It is now imperative that an investor friendly Petroleum Industry Bill is timeously passed into law, because its delay is holding back investment and this is impacting negatively on the Nigerian Economy.

“Government must take positive steps to revive and maintain our ailing dilapidated refineries, and push for an enabling environment to encourage investors to build new refineries in Nigeria.

“It is also imperative for government to diversify the economy from being soley oil dependent, to other streams of income generation such as Agriculture and solid minerals, other wise the ripple of our over reliance on crude export to the US, will be devastating to the economy” Okwuosa said

He therefore urged the FG to seize the opportunity and create other avenues to boost the nations economy, so that the shale revolution will be a blessing in disguise rather than a curse.