The Nigerian National Petroleum Corporation, NNPC, has painted a miserable viewpoint for Nigeria’s economic fortunes.
NNPC said the nation’s crude oil and gas reserves were fast depleting.
NNPC urged oil and gas exploration companies to focus on increasing the nation’s oil and gas reserve base to match national aspirations.
The statement was revealed by NNPC’s Group Managing Director, Mr. Maikanti Baru.
According to Baru, “Our national gas demand forecast to year 2020, domestic plus export, indicates a rapid growth to 15 billion Standard Cubic Feet per day (bscfd).
“In other words, our current reserves can only sustain that production for 35 years.
“So, if we do not increase the bscfd gas reserves base which require three trillion cubic feet (tcf) to replace production yearly, we will run into big trouble.”
Baru also revealed that Nigeria’s quest for industrialization risks being truncated as oil production is abysmally low.
Baru disclosed that a gas demand of 15 billion standard cubic feet per day required for industrialization and consumption.
Baru further explained that the 2016 national average oil production of 1.9 million barrels was low, partly due to oil infrastructure vandalism.
On frontier exploration, Baru said the NNPC was progressing in exploration efforts in the Chad Basin.
He also stated that the Benue trough and other frontier basins are being explored so as to shore up Nigeria’s reserve base.
Here is what Baru is saying: imagine that you have a bank account where you keep your excess monies.
You run your daily expenses out of pocket and leave the bank savings as a reserve.
What Baru is saying is this: Like your bank account, Nigeria also has a reserve of crude oil and gas but that that reserve is finishing.
Here is the implication of an empty crude and gas reserves: imagine loosing your job and your bank account finishes.
Imagine that you must pay rent, pay the people you owe, take care of medical needs and feed your family.
If you can imagine this, extrapolate it to Nigeria. This is what Baru is saying.