Why oil prices may not rise again, by experts
As global crude oil prices linger around $60 per barrel, industry experts have given reasons why prices are not likely to increase again.
According to them, the good old days of $100 or $120 per barrel has passed and will never be recorded again because of growing competition in the industry as well as lower cost of production.
At the ongoing Society of Petroleum Engineers (SPE) Nigerian Annual International Conference and Exhibition (NAICE) in Lagos, the Publicity Secretary of the Petroleum Technology Association of Nigerian (PETAN), Ranti Omole, explained that the availability of more cleaner alternative power sources , coupled with new frontiers coming on board into the Industry, create an environment of surplus. Hence possibilities are that crude oil prices may never increase again.
According to him, it is time for Nigeria to begin to maximise whatever is left, citing that countries like Kuwait are even devising means to deplete their oil reserves early enough to invest into gas, the new path.
“There are better and cost-effective methods of processing crude now and different ways of drilling, invariably there is increasingly easy access to production,” he added.
In his remarks about the major focus of the conference which is artificial intelligence and digitalisation in the oil and gas sector, the Chairman, Ghana National Petroleum Commission (GNPC) in Petroleum Economics at Institute for Oil & Gas Studies, University of Cape Coast, Prof. Wumi Iledare, opined that the industry in Nigeria is positioned for what is described as the best global practice and that is why the sector needs to allow young minds, who understand the issues of artificial intelligence more into the system.
He advanced that digitalisation in the industry is inevitable and Nigeria would still have to adopt, adding that the key way to get there, is through the young minds.
“I am not saying the old ones are irrelevant, but the young ones learn faster,” this he added should however not threaten the current leadership in the sector.
To this effect, he urged that recruitment in the industry should not be on sentiments and patronage, but on merit and capabilities.
Similarly, Omole, stated that the industry in Nigeria is not left out of the global threat of cyber attack, hence the need for quick actions and companies should start building strong firewall and access security to their various networks.
He also urged players to subscribe to the digitalisation because it the best way to monitor pipelines and also bring information from remote fields to the centre.