Tag: SPE

As global demand for fossil fuels begins to dwindle, Nigeria needs to increase its investments in renewable energy, the Society of Petroleum Engineers (SPE), Nigeria Council, has advised.

Its Chairman, Mr. Chikezie Nwosu, gave the advice while unveiling the society’s plan for the upcoming SPE annual Oloibiri Lecture series in Lagos with the theme: “Nigerian oil industry in a world of changing energy supply: Are we prepared?” He said it had become clear that with anticipated growth in energy demand and cleaner environment, the world was rapidly moving towards an age of cleaner sources of energy. He added that for fossil fuels, it would mean a greater reliance on gas and less reliance on oil and especially coal.

Nwosu said hydro-electric and gas-powered cars would replace diesel engines and, with time, gasoline engines.

He said: “Add to this is the growing investments in renewable sources of energy such as solar and wind, it becomes evident that Nigeria must rethink or rejig its energy policy to solidify on the gains in the oil and gas industry (the 7Big Wins), and leverage these learnings to prepare for an energy mix that will become less reliant on the more polluting fossil fuels.

“The pressure from the next generation of leaders will drive technological advances that will result in less reliance on environmental damaging energy and we (Nigeria) must be ready now.”

Nwosu noted that there were many opinions on how long reliance on fossil fuels would last. Many of these opinions are predicated on the huge remaining resources of oil and gas. However, one must note the often quoted statement that ‘the stone age did not end because mankind ran out of stones, and the oil age will end long before we run out of oil’.

He maintained that fate had played a major role in ensuring that Nigeria would stay ahead with abundant energy from the sun, wind energy in many northern parts of the country, and an estimated 190 trillion cubic feet (TCF) of gas and prospective resources that could be as high as 600TCF.

As an advocacy group, he said the SPE would continue to play a strong role in policy direction and execution through ensuring that the outcome of its engagements are well documented and presented to the authorities, encouraging its members to provide the expertise in their fields to government either through consultancy or service, provide forums for bringing the world to Nigeria and Nigeria to the world.

Other areas of support, according to him, include collaborating with government agencies in such areas as indigenising research and development (R&D) capacity and capability, supporting the provision of pedagogical aids to universities and training Institutes.

Also ensuring that the curriculum for  geosciences and related disciplines in the university delivers industry-ready graduates and supporting the strategic and ethical leadership of the next generation of entrepreneurs, employers and workers in the energy industry and aligned with the ‘7 Big Wins’ initiative of the Federal Government.

Nigeria’s oil and gas industry needs huge investments to be competitive and stand firm in times of global oil price crash, the Chairman, Society of Petroleum Engineers (SPE), Nigeria Council, Mr. Emeka Ene, has said.

He said in the short term, huge investments can be made in the brown fields (fields which production have dropped substantially due to age), marginal fields and independents.

In Ene’s view, investors and operators need to do infield drilling and work-over on all the brown fields, wells that have been developed already to get cheap barrels. Through this approach, he said, Nigeria could increase oil production by up to 20-30 per cent.  That is what the country needs now to boost its production, he argued.

Ene said Nigeria’s oil industry lacks the required investment that will make it competitive like other oil producing countries, adding that this period of low oil price is the best time for the government to invest in and attract investors into the industry.

He said common business sense requires investing in period of low price and selling in period of high price, lamenting that Nigeria is not doing but depleting the reserve it has.

He said what makes other oil producing countries thick is that they invest heavily in their oil industry in periods of downturn and reap heavily when oil price is high. It is natural that oil price falls at certain periods and rise again with time, he said, adding that when the price of oil goes down, the cost of production per barrel goes down and that is the best time to invest, he added.

Commenting on what Nigeria should  do in a period of low price as being experienced now, Ene said: “Supply and demand in the oil industry has not changed. Currently, supply exceeds demand but if you look at the forecast by the Energy Information Administration (EIA), we expect that by 2016, the gap will start to narrow.

“So this is a time for Nigeria to actually do the opposite of what it is doing, which is to invest. If the country doesn’t invest, when demand will exceed supply, we will not have the barrels to meet that demand. Common business sense tells us that we buy low and sell high. This is the time to invest in our industry.

“As we speak, Kuwait is investing $34 billion over the next three years in its oil industry to improve production; United Arab Emirates (UAE) is doing $36 billion, Saudi Arabia is also doing the same thing but in Nigeria, we are cutting back on our investments by over 30-40 per cent. To counter the effect from further oil glut, Nigeria is to take action by investing in its oil industry to boost production and become a competitive market place.”

He said diversification of our economy is in order but it is not what can be achieved overnight but investing in the industry for tomorrow’s profit can start now.

“Diversifying the economy is a great idea but it requires coordinated efforts to achieve. Right now, we are facing challenges of restructuring and reforming the industry to be leaner, more efficient and to produce cheaper barrels at a time when the industry is low so that we position the industry to reap the benefits when the industry is high.

“We need to look at brown fields, marginal fields and independents. All the brown fields, wells, that have been developed already, we need to do infield drilling, work-over, and we get cheap barrels. Through this we can increase our production by up to 20-30 per cent just by investing in that. That is what we need to know as a country, there is need for campaign to boost production. Short term oil gain should be the target,” he added.

The Society of Petroleum Engineers (SPE) has advised the Federal Government to use oil proceeds to create wealth for Nigerians and grow the economy.

The Chairman, Society of Petroleum Engineers Nigeria Council, Bernard Oboarekpe, gave the advice at a briefing in Lagos on the activities of the society and its forthcoming yearly international conference and exhibition billed for August 5 and 8 in Lagos.

He urged the prudent use of hydrocarbon to create wealth in order to survive the global shift to alternative energy. Oboarekpe explained that though oil reserves are depleting, there is nothing to fear about the depletion because Nigeria has abundant untapped hydrocarbon reserves.

He spoke on the state of the refineries, which has compelled the country to depend on imported products. There must be concerted efforts by the Federal Government to return the assets to productive capacity to stop importation, he said.

Oboarekpe said the ownership of the refineries do not matter to the Society, provided they are well run and the turnaround maintenance is done periodically.

On the conference, he said its theme is: “Africa’s energy corridor: Opportunities for oil and gas value maximisation through integration and global approach.”

The forum, he said, would focus on imperatives for deriving maximum benefits from the continent’s growing production capacity through growth that is laced with structural and economic transformation as well as development of infrastructure to support in-continent use; while maintaining the required balance to remain globally competitive.

Oboarekpe said: “The conference will bring together industry leaders and experts to provide key insights, into the right strategies for resolving these imperatives. We have invited the Executive Governor of Lagos State, the Minister of Petroleum Resources; the Group Managing Director of the Nigeria National Petroleum Corporation, several heads of government organisations; Managing Directors and Chief Executives of industry corporations and companies, the academia and media practitioners to grace the opening ceremony. Outside our traditional state of the nation’s oil industry address from the leadership of the NNPC, there will be guest speakers’ presentations at the opening ceremony.

“We are also expecting to hear from the Lagos State Government, on investment opportunities in the mega Lagos economic zone.”

Other notable dignitaries and guest speakers include the Chief Executive Officer/Executive Vice President of SPE International, Mr. Mark Rubin; President, Dangote Group, Alhaji Aliko Dangote and Executive Vice Chairman, Famfa Oil Limited, Mrs. Folorunso Alakija.

Other activities that would take place during the event include student chapters’ presentations contest, peer reviewed technical papers presentations (oral and e-poster), young professionals’ workshop, marginal field workshop and women development programme, Oboarekpe said.

THE Society of Petroleum Engineers (SPE) Nigeria Council will hold its yearly International Conference and Exhibition (NAICE) between July 30 and August 1, in Lagos.

It has theme: To grow Africa’s oil and gas production: Required policy, funding, technology, techniques and capabilities.

The Chairman of its Nigeria Council of the association, Mr Osayande Igiehon, told reporters in Lagos that the council will introduce two novel programmes – a workshop, which will focus on marginal field development best practices, and women development network.

He explained that the organisation is concerned with the increasing crude oil theft, depleting reserves and dwindling revenues from crude oil sales and would extensively brainstorm on these issues with a view to proffering solution.

He explained that the theme was chosen because it was observed that crude oil reserves in the region has continued to decline.

The conference, he noted, aims to provide a platform to help governments, industry and academia position for the aspired production growth, which will be crucial to achieving needed economic growth in Africa and meeting the world’s growing energy needs.

He said: “As exploration of crude oil never ceases, there is need for further discoveries of more reserves to replenish those already extracted from oil wells. So, the challenge of inventing new technologies to aid new crude oil discoveries and to reduce cost of operation would be discussed in order to find lasting remedy to it.

He said the marginal field best practices workshop will feature seasoned experts who will proffer valuable ideas on how to improve the success rates and increase the contribution from marginal fields to meet the overall production growth aspirations, he added.

Expected at the three-day event are Governor of Lagos State, Minister of Petroleum Resources and the SPE International President who will be special guests.

During the conference, short courses will be offered on reservoir modelling, communication skills, petroleum geomechanics & wellbore Stability, Strategic Leadership and Monte Carlo Simulation Approach and well and reservoir management.