Crude Oil Export: Why Nigeria Lost US Patronage – Kachikwu
The Nigerian Minister of State for Petroleum Resources, Dr Ibe Kachikwu said on Tuesday that the country lost US market due to the surging production of Shale oil in the US.
He said this at CERAWeek in Houston, USA, adding that the United States loved Nigeria’s Light sweet Nigerian crude until early 2000 when the market began to drop.
CERAWeek conference continues outreach between the Organisation of the Petroleum Exporting Countries, OPEC, and shale producers.
Kachikwu stated that the US was a significant crude export market for Nigeria until early 2000 with an average buy of 700, 000b/d.
However, things began to go worse as Shale began to produce almost the same quality and higher quantity than Nigeria, which is the biggest producer in Africa.
US was importing oil from Nigeria as much as 1.31 million b/d in February 2006, according to the US Energy Information Administration.
“At present, it is zero export to US,” Kachikwu said.
Meanwhile, much of Nigeria crude oil is being exported to Asian markets with India being the largest.
Nigeria’s oil output averaged 2.07 million in February 2018, 20,000 b/d up from January, according to petroleum ministry estimates.