Nigeria produces about 1.2 million barrels of oil per day. The United States does about 13.3 million barrels per day. But while Nigeria is an “oil producing country”, not many people in the real sense think of the United States as first an oil producing country. Why? The diversified US economy with New York anchoring banking, Silicon Valley technology, and so much, obscures the fact that non-OPEC+ countries (which the US belongs to) produce more oil in the world today than OPEC+ countries (which Nigeria is a member).
I have written here many times that the long term trajectory for oil price will be “low price” because it will be an era of quantity (adjusted by disintermediation from renewable energy), and whenever that happens, price struggles. Yes, as the US produces more oil, some OPEC+ members may decide to pull out (hello Angola which exited OPEC+) to enable them to produce unconstrained, and as that happens, prices will fall. That would be a vicious circle where more production will lead to lower global prices.
The Republic of Angola’s abrupt departure from the Organization of the Petroleum Exporting Countries (OPEC) marks a decisive turn in the group’s unity, raising concerns and signaling a growing rift within the coalition of oil-producing nations.
The move announced following a cabinet meeting on Thursday, lays bare a deepening conflict between Angola and OPEC, exposing underlying tensions over output limits that failed to accommodate Angola’s diminishing oil production capacities.
Good People, Nigeria has a few more years to fundamentally redesign the architecture of its economy because we can suddenly wake up to see that this oil will be there with few interested in buying it from us. Indeed, the real “producers” of oil are not making noise!
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The U.S. now pumps more oil than any country in history, aided by new policies and technology. Federal and state tax breaks, along with relaxed regulation, paved the way for output of 13.3 million barrels per day in December, according to the Energy Information Administration. At the same time, new efficiencies including horizontal drilling techniques require fewer rigs. The output gains undercut the power of Saudi-led OPEC+, which now accounts for only 48% of global market share.
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Nigeria is not a producer of anything, we are being counted among the producers, we are not leading in anything.
The country is in desperate need of a driver and Inspire in Chief. There is a way to wake the citizens up and inspire them to undertake great deeds.
We are never challenged in this country, because those who should activate the challenge lack both credibility and are starved of the people’s goodwill.
The fundamental redesign the country needs won’t even cost plenty money, you just need to move few things around and challenge everyone to go out there and win. Until we become extremely uncomfortable with mediocrity…