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Group Managing Director of the Nigerian National Petroleum Corporation Alhaji Mele Kolo Kyari disclosed the Federal Government’s plan to expand access to Liquefied Petroleum Gas (LPG), or cooking gas, for rural dwellers to replace charcoal and firewood for cooking.
Kyari spoke at the virtual Atlantic Council’s Global Energy Forum, stating that Nigeria’s domestic consumption of LPG exceeded one million metric tons (MT) in 2020, a substantial rise compared to the 50,000 MT of consumption in 2007. He further stated that the country is witnessing increased domestic gas demand in the industrial and power sectors, leading to increased production and reduced gas flaring, as well as an increase in household access to gas networks and LPG in the main cities.
As a result, the next initiative is to expand access to rural areas. The Federal Government is making conscious efforts to deepen domestic gas consumption through use of Compressed Natural Gas and LPG.
The Minister of State for Petroleum Resources H.E. Timipre Sylva postponed the 2021 edition of the Nigerian International Petroleum Summit to June 6-10, 2021, which was originally scheduled for March 2021. He announced the new dates during a special broadcast program published on the Ministry’s social media platforms and noted the current global pandemic as the impetus for the change. Under the theme, “From Crisis to Opportunities: New Approaches to the Future of Hydrocarbons,” the Summit aims to chart the way forward for Africa’s oil and gas industry in the post-COVID-19 pandemic era.
On January 26, TDI-Brooks International announced that it had completed a geophysical and geotechnical campaign for Trident Equatorial Guinea off the coast of Equatorial Guinea in the Elon Field. The site survey work was performed off the R/V Proteus, a research vessel owned and operated by TDI-Brooks. The goal was to assess seabed conditions prior to the emplacement of a drilling rig at three proposed locations (previously drilled), together with reconnaissance survey work at two additional platforms and along several proposed cable/pipeline routes.
Survey objectives include undertaking a Debris Clearance Survey at each of the locations; identifying and establishing areal nature of the previous spud can footprints; establishing the nature of the shallow soils, within the top 5m and to a depth of >20- 25m; acquiring deep CPT data >20m at two locations; acquiring representative data at nominal proposed Relief Well Locations; and reconnaissance of existing platforms and along proposed routes (single lines).
In addition to a site survey, TDI-Brooks completed gCPT measurements at two proposed drill sites. The purpose of the TDI-Brooks Gravity CPT (gCPT) tool is to transport a precisely calibrated memory cone penetrometer down to the seabed to gather dynamic PCPT cone data from the mud line to 10+ m BML. In addition to its 1,800-lb driving head with lifting bale and trigger, the rig comprises a self-contained PCPT cone penetrometer that measures tip resistance (qc), sleeve friction (fs), and pore pressure (u2) using standard ASTM dimensions and protocols for its 15-cm2 cone.
On January 28, crude oil prices fell on fresh fuel demand worries because of travel bans to prevent new COVID-19 outbreaks and delays with vaccines, while a stronger U.S. dollar weighed on prices.
The U.S. West Texas Intermediate crude futures fell 36 cents to $52.49 a barrel, erasing Wednesday’s gain while Brent crude futures fell 46 cents to $55.35 a barrel, after losing 10 cents on Wednesday.
The U.S. Energy Information Administration’s (EIA) weekly report for January 27 showed that crude inventories declined 9.91 million barrels during the week ending January 22 to a 10-month low of 476.65 million barrels. It was the largest one-week draw since the week ending July 24 and left inventories just six percent above the five-year average, the narrowest supply overhang since early April.
The U.S. dollar index rose to 90.753 from a January low of 89.206. Buyers using other currencies must pay more for dollar-denominated oil when the greenback rises. The oil market had been supported earlier this week by a surprisingly large decline in U.S. crude stockpiles in the week to January 22, which analysts said was due to a pickup in U.S. crude exports and a decrease in imports. But attention is now turning back to demand concerns amid a rise in COVID-19 infections.
Stricter vaccine checks by the European Union and delivery hold ups from AstraZeneca and Pfizer have slowed the rollout of shots in the bloc. Adding to the demand worries, China, the world’s second-largest oil consumer, is now facing a surge in Coronavirus cases and seeking to limit travel as it heads into what is normally the busiest travel season of the year, the Lunar New Year holiday.
Britain, in lockdown since January 4, on Wednesday clamped down on travel, requiring people arriving from high-risk COVID-19 countries to quarantine for 10 days and barring outbound trips for all but exceptional reasons. On Thursday, Australia extended its suspension of quarantine-free travel with New Zealand, as it investigated two new positive cases of the South African COVID-19 variant.
The U.S. Department of Labor also reported a bigger-than-expected drop in the number of people filing initial claims for jobless benefits last week. Signs of U.S. growth added to the optimism generated by Wednesday’s EIA data and the International Monetary Fund revising higher its estimate for world GDP growth to 5.5% from 5.2% previously. Global oil demand is expected to rise by nearly seven percent this year, boosted by quicker vaccine distribution and a better economic outlook. However, the market is propped up by supply cuts. Saudi Arabia is set to cut output by one million barrels per day (bpd) in February and March. This means OPEC+ supply cuts will rise from 7.2 million bpd in January to 8.125 million bpd in February.