Despite the prevailing air of uncertainty in the international oil market and its potential negative implications for oil exporting countries, the Nigerian National Petroleum Corporation (NNPC) has predicted that oil and gas would continue to contribute significantly to economic growth in countries worldwide in the years ahead.
The corporation’s Operating Officer, Upstream, Mr. Roland Ewubare, in a paper he delivered at the just ended Abu Dhabi International Petroleum Exhibition Conference (ADIPEC) in the United Arab Emirates (UAE), maintained that oil and gas would continue to serve as a primary source of energy, despite latest innovations on alternative sources.
While agreeing that some regions, particularly countries in Europe and the Americas would continue to explore the opportunities being offered by renewable energy sources better than other regions, Ewubare said in regions from where growth and economic expansion derive from, oil and gas would remain vital as energy sources.
He explained: “Yes, there will be some regions that will migrate towards renewables. But don’t forget that growth in terms of absolute numbers and economic expansion comes primarily from Asia and Africa.
“In long term, those areas are not where the use of electric vehicles has gotten close to significant levels. So, I have no worry about the future of oil. It is bright and robust,’’ the industry expert added.
On how the state-owned oil entity is proactively responding to the emerging developments in the energy industry, he pointed out that the corporation’s primary aspiration was to make Nigeria energy secured and by so doing, use energy as a tool to reduce disparity in prosperity.
He elaborated: “The conversation here was about the transition to a greener future as it were. Nigeria is a country of over 200 million people and whatever we do has an impact in Africa and the rest of the world. We also realise that we have an economy to grow. This means that while we are mindful of the larger issues of the environment, we have to address issues that concern our immediate development.
“NNPC has the renewable energy division. We have all kinds of initiatives in place around solar, ethanol, and biomass. Most of the initiatives are in the incubation type stage. You cannot be an oil company today and not see yourself as an energy company. Renewables are part of the need”, Ewubare added.
According to him, the corporation will continue to prioritise local content development in its operations as a strategic option of using local content as a stimulant for the nation’s sustainable economic growth, improved revenue generation, job creation and development of in-country capacities.
He pointed out that local content development agenda by the corporation was not a lip service, especially when analysed within the context of the volume of contracting Engineering, Procurement, and Construction (EPC) in Exploration Production would be saved by the country.
Ewubare said that the more Nigerians the corporation can bring on board, the more in-country competence will be harnessed and thereby lead to increase talent development, employment, and revenue generation.”
He also spoke on efforts by the Nigerian government to grow the nation’s oil reserve, adding that NNPC is targeting a 67 per cent in-country support projection on other inland basins after the Egina project.
Pointing out further that exploration is broad-based and not limited to the Chad Basin or the Benue trough, the NNPC’s Chief Operating Officer said that as already indicated the corporation would move further towards the Anambra Basin and other inland frontier basins in its efforts to boost the nation’s oil and gas reserves.
