The federal government has called on petroleum engineers to develop sustainable solutions to address significant challenges in the oil sector, including low productivity, oil theft, and pipeline vandalism.
At the annual conference of the Nigerian Institution of Petroleum Engineers (NIPetE) held in Abuja on Thursday, Minister of State for Petroleum Resources, Heineken Lokpobiri, emphasized the need for innovative and locally developed strategies to improve the industry’s performance. Lokpobiri, represented by Kamoru Busari, the director of Upstream at the Ministry of Petroleum Resources, reiterated the importance of finding sustainable solutions for Nigeria’s petroleum sector.
He highlighted the necessity of balancing economic growth, energy security, and environmental sustainability in the context of global energy transitions.
Lokpobiri urged industry players to collaborate in ensuring a sustainable future for Nigeria’s oil and gas sector, stating, “Sustainable solutions for Nigeria’s petroleum industry in the era of transition are highly critical for the future developments of our oil and gas industry and must be with a comprehensive approach that balances economic growth, energy security, and environmental sustainability.”
He noted that the changing global energy landscape, influenced by fluctuating oil prices, geopolitical tensions, climate change, and energy transition, requires an adaptation of Nigeria’s oil and gas strategies for long-term sustainability and competitiveness.
The minister pointed out that Nigeria is proactively working to revitalize the entire oil sector, focusing on infrastructure modernization, enhancing security, streamlining regulations, attracting investments, adopting technology, and building partnerships.
Lokpobiri expressed optimism about the future of Nigeria’s petroleum industry, citing the OPEC 2024 World Oil Outlook (WOO), which forecasts a 24 percent increase in global energy demand by 2050.
He mentioned that the world economy is expected to double, growing from $165 trillion in 2023 to $358 trillion by 2050, and that the global population will exceed 9.5 billion by then, with significant growth occurring in non-OECD developing countries.
In response to the anticipated demand growth, the upstream regulator NUPRC has launched an initiative to increase oil production by an additional one million barrels per day. Lokpobiri challenged industry stakeholders to identify ways to add two million barrels per day to existing production within two years.
He outlined key strategies for achieving this goal, including optimizing existing assets through enhanced oil recovery methods, expediting approval processes for projects, and encouraging exploration in under-explored regions.
He also highlighted that oil and gas will continue to be crucial to the energy mix, with its share projected to remain above 53 percent through 2050. He stated, “Based on OPEC’s research, cumulative oil-related investment requirements from now until 2050 will amount to approximately $17 trillion or around $630 billion on average per year. Securing this vital funding is essential to maintaining security of supply and avoiding unwanted volatility.”
In addition, Professor Yinka Omorogbe, an energy expert and lawyer at the Centre for Petroleum, Energy Economics and Law at the University of Ibadan, underscored the importance of strong administration and implementation of the Petroleum Industry Act (PIA) 2021 to optimize the benefits of the law.
Omorogbe emphasized that the issue is no longer the law itself but the challenges related to its administration and implementation. “Our problem is not the law and regulation. Our problem lies in administration and implementation. You need a law that is in alignment with policy,” she stated.
Omorogbe highlighted the critical role of the midstream and downstream sectors in the overall development of the country. She explained that while oil exploration is essential, it is more beneficial for the oil to reach productive sectors within the country rather than being refined abroad. She stressed the need to address roadblocks that impede progress, arguing that the law can be amended, but effective implementation is key.
“The law is important. It’s very central. It’s fundamental. It’s like a skeleton. You must have it. But at the end of the day, it’s not the skeleton that makes you fat and healthy. It is action and implementation that will make us fat and healthy. And that is what we want. If we want Nigeria to truly develop, the roadblocks must be dismantled,” Prof. Omorogbe concluded.
