Oil & Energy
Six Rivers Students, Two Others Get SPDC Scholarships
The Shell Petroleum Development Company of Nigeria Joint Venture (SPDC JV) has awarded scholarships to six Rivers and two Abia states’ students who came tops in the 2017 Environmental Awareness Secondary Schools Quiz Competition for Land East Hub communities.
The eight were among the students from over 90 schools who participated in this year’s secondary schools quiz competition, and represented Community Secondary School, Owaza, Abia State, Model Girls’ Secondary School, Rumueme, County Grammar School, Ikwerre/Etche and Community Secondary School, Aleto.
While Noble Uchechukwu and Chikere Nnamdi from Community Secondary School, Owaza, Abia State clinched the grand prize with their first position, Henry Divine-Favour and Lekia B. Favour of Model Girls’ Secondary School, Rumueme, Nwala Bright and Nwala David of County Grammar School, Ikwerre/Etche and Gift Eunice KaBari as well as Favour Nkajima of Community Secondary School, Aleto; grabbed the second, third and fourth positions, respectively.
Speaking while presenting the scholarships and prizes to the students at the event organized by SPDC JV in collaboration with Rivers, Imo and Abia states’ Ministries of Education in Port Harcourt, Shell External Manager, Igo Weli expressed delight that the event has offered many participants an avenue to learn from the younger generation, adding that the power in team work was cardinal in the success of the students.
Weli regretted that the violence experienced in the Niger Delta region in recent years had forced some major oil companies to relocate their administrative and operational offices from Rivers State to other states with favourable operating business environment, lamenting this quagmire has unleashed untold hardship on many vulnerable people and businesses with negative impact on the economy.
The general manager stressed that the relocation of the oil companies has stunted economic and human capacity development, dealt a devastating blow on job creation and empowerment opportunities while exacerbating cult-related violence and criminalities such as illegal oil bunkering and pipeline vandalism, kidnapping, armed robbery, among others.
While warning misguided elements engaged in criminal activities to desist forthwith as there do not proffer workable solutions to the problems of unemployment, Weli urged the people of the region, especially the youth to look inward and find meaningful ways of contributing to the economy of their communities, states and the country.
SPDC Asset Manager, Land East Hub, Ezugworie Chibogwu Samson said the company decided to award scholarship to the best finalists as a way of encouraging more students to participate in schools’ academic competitions and programmes.
Samson urged the students to realise that excellence does not end in quiz completions, and advised them to ensure that they internalise what they were taught and work hard to protect and preserve the environment for the benefit of all.
“If you don’t protect the environment, there would be no future for us to live. We must protect and preserve our environment to enable us have a future that we all deserve,” he said.
In his remarks, Permanent Secretary, Rivers State Ministry of Education, Mr Dagogo Hart, thanked SPDC for sustaining the environmental awareness programme amongst students despite dwindling revenues, adding that the theme of this year’s competition was apt because it enabled students have better understanding of the consequences of negative vices on the precious environment in communities, the states and nation at large.
Represented by the Director, Special Duties in the ministry, Reginald Osigbo, the permanent secretary appealed for not only sustainability but expansion of the programme to all in schools in SPDC catchment states while urging the students to educate themselves on the need to live environmentally-friendly and healthy lifestyle.
Representative of the Permanent Secretary, Ministry of Environment, Abia State, Mrs Comfort L. Kalu, commended SPDC for organising the competition.
She cautioned against indiscriminate abuse of the environment and the ecosystem, and encouraged all stakeholders to commit to activities that will help protect the environment.
Also speaking, Director of Scholarship, Rev Mrs Christy Ibeji, who represented the permanent secretary, Imo State Ministry of Education, solicited the assistance of SPDC in creating environmental awareness in the communities via the media, and pledged the support of the state government in ensuring the protection and preservation of the environment.
Speaking on behalf of the schools, Head Teacher in-charge of Quiz Competitions, Model Girls’ Secondary School, Rumueme, Madam Warmate Tuboala, expressed joy that the students made the school and the Rivers State Government proud as good ambassadors of the vision and dream of the Governor Nyesom Wike-led administration to reposition the state education sector for excellence.
On his part, winner of the first prize and speaker of Community Secondary School, Owaza, Chikere Nnamdi, thanked SPDC management for the encouragement and support, and expressed commitment of the champions to justify the confidence reposed in them.
The Tide reports that the subjects of the quiz competition include, English Language, Chemistry, Mathematics, Biology, as well as Environment and Sustainable Development.
The Tide also reports that Okpara Glory Ifeoma of Priscilla Memorial Secondary School, Oguta, Imo State, was rated the best student in Essay Writing Competition.
Highlights of the event were the presentation of textbooks, 17 Secrets Of High Flyer Students, laptops, Samsung Galaxy Tablets, and trophies, among others to the champions, by Weli and representative of the permanent secretary.
The syndicate/parley sessions was anchored by the SPDC General Manager, Safety & Environment, Chidube Nnene-Anochie.
Susan Serekara-Nwikhana & Mirian Obusele
The Federal Government has expressed optimism in attracting more investments by International Oil Companies (IOCs) into Nigeria to foster growth and sustainability in the energy sector.
This is as some IOCs, particularly Shell and TotalEnergies, had announced plans to divest some of their assets from the country.
Recall that Shell in January, 2024 had said it would sell the Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance.
According to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, increasing investments by IOCs as well as boosting crude production to enhancing Nigeria’s position as a leading player in the global energy market, are the key objectives of the Government.
Lokpobiri emphasized the Ministry’s willingness to collaborate with State Governments, particularly Bayelsa State, in advancing energy sector transformation efforts.
The Minister, who stressed the importance of cooperation in achieving shared goals said, “we are open to partnerships with Bayelsa State Government for mutual progress”.
In response to Governor Douye Diri’s appeal for Ministry intervention in restoring the Atala Oil Field belonging to Bayelsa State, the Minister assured prompt attention to the matter.
He said, “We will look into the issue promptly and ensure fairness and equity in addressing state concerns”.
Lokpobiri explained that the Bayelsa State Governor, Douyi Diri’s visit reaffirmed the commitment of both the Federal and State Government’s readiness to work together towards a sustainable, inclusive, and prosperous energy future for Nigeria.
While speaking, Governor Diri commended the Minister for his remarkable performance in revitalisng the nation’s energy sector.
The Federal Government has assured investors in the nation’s gas sector of the security and safety of their investments.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the assurance while hosting top officials of Shanghai Huayi Energy Chemical Company Group of China (HUAYI) and China Road and Bridge Corporation, who are strategic investors in Brass Methanol and Gas Hub Project in Bayelsa State.
The Minister in a statement stressed that Nigeria was open for investments and investors, insisting that present and prospective foreign investors have no need to entertain fear on the safety of their investment.
Describing the Brass project as one critical project of the President Bola Tinubu-led administration, Ekpo said.
“The Federal Government is committed to developing Nigeria’s gas reserves through projects such as the Brass Methanol project, which presents an opportunity for the diversification of Nigeria’s economy.
“It is for this and other reasons that the project has been accorded the significant concessions (or support) that it enjoys from the government.
“Let me, therefore, assure you of the strong commitment of our government to the security and safety of yours and other investments as we have continually done for similar Chinese investments in Nigeria through the years”, he added.
Ekpo further tasked investors and contractors working on the project to double their efforts, saying, “I want to see this project running for the good of Nigeria and its investors”.
Earlier in his speech, Leader of the Chinese delegation, Mr Zheng Bi Jun, said the visit to the country was to carry out feasibility studies for investments in methanol projects.
On his part, the Managing Director of Brass Fertiliser and Petrochemical Ltd, Mr Ben Okoye, expressed optimism in partnering with genuine investors on the project.
Crude oil prices recently logged their second monthly gain in a row as OPEC+ extended their supply curb deal until the end of Q2 2024.
The gains have been considerable, with WTI adding about $7 per barrel over the month of February.
Yet a lot of analysts remain bearish about the commodity’s prospects. In fact, they believe that there is enough oil supply globally to keep Brent around $81 this year and WTI at some $76.50, according to a Reuters poll.
Yet, like last year in U.S. shale showed, there is always the possibility of a major surprise.
According to the respondents in that poll, what’s keeping prices tame is, first, the fact that the Red Sea crisis has not yet affected oil shipments in the region, thanks to alternative routes.
The second reason cited by the analysts is OPEC+ spare capacity, which has increased, thanks to the cuts.
“Spare capacity has reached a multi-year high, which will keep overall market sentiment under pressure over the coming months”, senior analyst, Florian Grunberger, told Reuters.
The perception of ample spare capacity is definitely one factor keeping traders and analysts bearish as they assume this capacity would be put into operation as soon as the market needs it. This may well be an incorrect assumption.
Saudi Arabia and OPEC have given multiple signs that they would only release more production if prices are to their liking, and if cuts are getting extended, then current prices are not to OPEC’s liking yet.
There is more, too. The Saudis, which are cutting the most and have the greatest spare capacity at around 3 million barrels daily right now, are acutely aware that the moment they release additional supply, prices will plunge.
Therefore, the chance of Saudi cuts being reversed anytime soon is pretty slim.
Then there is the U.S. oil production factor. Last year, analysts expected modest output additions from the shale patch because the rig count remained consistently lower than what it was during the strongest shale boom years.
That assumption proved wrong as drillers made substantial gains in well productivity that pushed total production to yet another record.
Perhaps a bit oddly, analysts are once again making a bold assumption for this year: that the productivity gains will continue at the same rate this year as well.
The Energy Information Administration disagrees. In its latest Short-Term Energy Outlook, the authority estimated that U.S. oil output had reached a record high of 13.3 million barrels daily that in January fell to 12.6 million bpd due to harsh winter weather.
For the rest of the year, however, the EIA has forecast a production level remaining around the December record, which will only be broken in February 2025.
Oil demand, meanwhile, will be growing. Wood Mackenzie recently predicted 2024 demand growth at 1.9 million barrels daily.
OPEC sees this year’s demand growth at 2.25 million barrels daily. The IEA is, as usual, the most modest in its expectations, seeing 2024 demand for oil grow by 1.2 million bpd.
With OPEC+ keeping a lid on production and U.S. production remaining largely flat on 2023, if the EIA is correct, a tightening of the supply situation is only a matter of time. Indeed, some are predicting that already.
Natural resource-focused investors Goehring and Rozencwajg recently released their latest market outlook, in which they warned that the oil market may already be in a structural deficit, to manifest later this year.
They also noted a change in the methodology that the EIA uses to estimate oil production, which may well have led to a serious overestimation of production growth.
The discrepancy between actual and reported production, Goehring and Rozencwajg said, could be so significant that the EIA may be estimating growth where there’s a production decline.
So, on the one hand, some pretty important assumptions are being made about demand, namely, that it will grow more slowly this year than it did last year.
This assumption is based on another one, by the way, and this is the assumption that EV sales will rise as strongly as they did last year, when they failed to make a dent in oil demand growth, and kill some oil demand.
On the other hand, there is the assumption that U.S. drillers will keep drilling like they did last year. What would motivate such a development is unclear, besides the expectation that Europe will take in even more U.S. crude this year than it already is.
This is a much safer assumption than the one about demand, by the way. And yet, there are indications from the U.S. oil industry that there will be no pumping at will this year. There will be more production discipline.
Predicting oil prices accurately, even over the shortest of periods, is as safe as flipping a coin. With the number of variables at play at any moment, accurate predictions are usually little more than a fluke, especially when perceptions play such an outsized role in price movements.
One thing is for sure, though. There may be surprises this year in oil.
lrina Slav
Slav writes for Oilprice.com.
