Building a world of
resilient communities.

MAIN LIST

 

Trio vows to pump more oil - but can't

Lagos - Leading oil exporters outside the Middle East have pledged to boost production to offset soaring oil prices, but it could be years before Russia, Nigeria and Mexico manage to open their taps.

In all three countries, building projects to clear pipeline bottlenecks or to boost production capacity are still works in progress.

In Nigeria, intermittent attacks on installations in the oil-rich Niger Delta persistently limit drilling, forcing multinationals to abandon wells.

"On a longer term, at least one or two years, I think things will change. A big increase in production is possible," said local energy consultant Pieter Louw.

"But in the short term, it is better to keep your little diesel car and do not expect big changes."

US energy secretary Spencer Abraham insisted the pledges "should have a significant impact on world energy prices".

But the promises seem a long way from being met - at least in ways the world would notice.

Mexico promised to do its part but only by next year, when it had finished construction projects to boost capacity.

Nigeria promised an extra 300 000 barrels per day (bpd) within 40 days, if the market wanted it. But analysts are sceptical whether Africa's largest oil producer can go much beyond that modest target.

A member of the Opec oil producers' cartel, Nigeria is already nearly 300 000 bpd over its export quota of 1.93 million bpd.

Armed attacks on installations in the delta have cut about 7 percent of national production in losses to Royal Dutch/Shell and Chevron Texaco alone.

Nigeria might be able to boost production to as much as 3 million bpd in a year's time but at the risk of aggravating violence, said economist Bismarck Rewane.

In Russia the problems are peaceful ones: pipelines and port facilities. Exports through the state-owned Transneft pipeline are already near maximum capacity and with Russian projects far from completion, experts agree any significant export boost is at least three years away.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

Tags:  

Peak Oil Notes - Aug 27

A midweek update. Oil prices fell sharply on Monday in response to another …

Deflationary Collapse Ahead?

Both the stock market and oil prices have been plunging. Is this “just …

My Chicken of an EV

A little over two years ago, my wife and I entered a new phase of life in …

In Clash of Greens, a Case for Large-Scale Solar Projects

Weaning the U.S. economy off fossil fuels will involve the wide deployment …

Why the $20 Oil Predictions are Wrong

As the price of West Texas Intermediate (WTI) retests the $40 per barrel …

Peak Oil Review - Aug 24

The great oil price slide of 2014-15 is taking on epic proportions.

Fracking Arrives in the UK

Fracking has finally arrived in the UK, eight years on from …