VENTURES AFRICA – Nigeria’s crude oil export to the US experienced a shortfall of 25.1 million barrels in the first quarter of this year, a significant drop from last year’s figures of 30.7 million barrels.
Export to the US – arguably the largest importer of Nigerian crude, accounting for 40 percent of the country’s total export – dropped dramatically to 5.6 million barrels in Q1 this year, costing the country $2.7 billion with crude price lingering at $110 per barrel,BusinessDay reported.
Oil revenue has been on a decreasing trend in recent times, largely owing to security and economic challenges domestically including oil theft, illegal sales, vandalism and other illegal activities.
There has been daily decrease of 1 million barrels from 2004 to 2007, according to Osam Iyahen, Vice President of Africa Finance Corporation (AFC).
He also added that the Nigeria crude oil market will be at risk when the Libyan and the Iranian suppliers return to the market.
In a bid to counter this decline and further diversify its export portfolio, Wumi Iledare, the president of the International Association for Energy Economics (IAEE), advised the country to explore expanding business relations with China – America’s closest competitor for oil imports – as well develop its downstream and mainstream of the oil sector.
Nigeria’s current daily production stands at 2.5 million barrels, making it the largest African producer and 6th largest globally.
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