IOCs fault Kachikwu, say freezing supply won’t guarantee oil price rebound
ABUJA— International Oil Companies, IOCs, and energy experts, yesterday, stated that freezing the supply of crude oil alone would not likely lead to a rebound in the price of the commodity, stating that other factors needed to be considered also. crude-oil-pipe-702x336-436x336This was contrary to claims by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, that freezing supply at certain levels would help drive up prices. The minister’s idea had been bought into by a number of countries, with a meeting scheduled to be held April 2016 in Russia, to deliberate on the issue of freezing supply among OPEC and non-OPEC members. Speaking at the ongoing Sixth African Petroleum Congress and Exhibition (CAPE VI) in Abuja, the IOCs and the energy experts disclosed that due to inefficiencies in terms of energy use, the demand curve at the moment was not what obtained in the past and would hamper a rebound in oil prices to levels seen in the past. Specifically, Mr. Clay Neff, Chairman, Oil Producer Trade Section, OPTS, of Lagos Chamber of Commerce and Industry, LCCI, stated that effective collaboration was critical in overcoming the challenges facing the petroleum industry. According to him, success at the continental level and, indeed, globally starts with a critical recognition that producing and consuming countries, IOCs and all stakeholders in the oil and gas industry must all recognize that when it comes to the challenges of the industry, they are all playing for the same team. Neff, who is also Chairman/Managing Director, Chevron Nigeria Limited, maintained that collaboration would throw up practical solutions which would help drive the industry. He said: “The good news is the industry and the Federal Government are collaborating to mitigate these challenges and the collaboration has never been very good. “I am optimistic the collaborations will lead to the surmounting of the current challenges in the industry, especially in Nigeria.”