Nigerian official: OPEC may meet to reassess global oil demand

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 16 -- The Organization of Petroleum Exporting Countries may meet to assess the impact on oil supply from the nuclear crisis in Japan as well as continued unrest in North Africa.

“I do suspect members of OPEC would be getting together to assess the situation of demand and supply,” said Nigeria’s Foreign Minister Henry Odein Ajumogobia, who added that Japan also is likely to affect the oil market and “therefore the prices.”

Oil prices fell in the aftermath of a massive earthquake that hit Japan on Mar. 11, after earlier unrest in the Middle East and disruptions of supply in Libya caused prices to rise to almost $120/bbl on Feb. 24.

But Japan, the world's third-largest oil consumer, is likely to require an increase in fuel oil imports to generate electricity in the long-term as a quarter of its nuclear power plants have been taken offline (OGJ Online, Mar. 15, 2011).

“OPEC is currently maintaining its ceiling,” Ajumogobia said, while noting that “current events in North Africa will probably inform the decision as to where those ceilings will be increased.”

He said, “If OPEC ceilings are increased, then our production will increase by the same token.” Ajumogobia said Nigeria produces 2.5 million b/d. "Our OPEC oil output quota is 1.8 million b/d and the rest is condensate.”

Ajumogobia’s remarks coincided with reports that Eni SPA, the largest foreign energy major in Libya, has halted oil production in the strife-torn nation but is still producing natural gas to supply some of the country's power stations.

Eni Chief Executive Paolo Scaroni explained oil production was stopped due to logistical problems with exports.

Meanwhile, Paris-based International Energy Agency said of Libya: "It is understood that most oil field operations have been shut-in or sharply curtailed, with transport routes choked off (OGJ Online, Mar. 15, 2011).”

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

WoodMac: Bakken drilling, completion capex to top $15 billion in 2014

04/02/2014 Oil and gas industry analyst Wood Mackenzie Ltd. forecasts that operators in the Bakken shale will invest more than $15 billion on drilling and com...

Moody’s: Marcellus shale gas producers to benefit most in US

04/01/2014 Natural gas producers in the Marcellus shale will benefit more than producers elsewhere in the US because of many favorable circumstances, even if ...

Roc farms in to PSC offshore Malaysia

04/01/2014 Fresh from its sale of the Basker-Manta-Gummy (BMG) fields in Bass Strait, Roc Oil Co. Ltd. has farmed in to a production-sharing contract offshore...

Husky, CNOOC start production from Liwan 3-1

03/31/2014

Husky Energy Inc., Calgary, and CNOOC Ltd. reported the start of production from Liwan 3-1 field in the South China Sea.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected