Energy expert Nick Agule has urged the Federal Government to remove the bottlenecks confronting the upstream sector in order to increase the country’s production of crude oil from less than 2 million to 2.5 million barrels per year.
Nick made these suggestions in an exclusive interview with Tribune Online yesterday.
The expert identified the regulatory regime, an unenabling environment, community agitation, and restiveness as hindrances that need to be addressed.
He explained that addressing these bottlenecks would lead to a production increase of at least five million barrels per day, with a consequent positive impact on the country’s cash flow.
Agule further noted that crude oil would be far less utilized in 40 years given the country’s 38 billion barrels of reserves. Hence, the need to fully exploit and use the proceeds for the benefit of Nigerians.
“Why are we producing less than two million barrels of crude oil per year? Part of the reasons include the regulatory regime, unenabling environment, community agitation, and restiveness.
“The government should focus on these areas. It needs to remove these bottlenecks. Nigeria has produced 2.5 million barrels before, so it is a low-hanging fruit. We need to get back to that 2.5 million barrel extraction in the first instance.
“I would think that Nigeria should be producing about five million barrels of crude oil per day. Imagine what would happen to our cash flow if we achieve this,” he said.
“Even with the reserves that we have now, if we are extracting one million barrels per year, it will take us 38 years to fully produce what is there because we are extracting less than one million per year.
“And I can guarantee that we will be using far less crude oil in 40 years than we are using now,” he added.
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