Nigerian oil advisor warns oil prices could fall further

Apr 18, 2005 02:00 AM

Oil prices could fall further in their current downward trend, Edmund Daukoru, Nigeria's Presidential Adviser on Petroleum and Energy warned.
"They could fall further, though we have been witnessing a curious disconnect between stock levels and price since 2004," he said in a keynote address at the start of a three-day Nigerian Oil and Gas conference and Exhibition.

Oil prices aren't at a level "that one can honestly consider to be a true reflection of underlying existential factors in producing countries," he said.
He said the current fall in price followed a rebuilding of stock levels. But he said even current high prices still don't account for all the costs born by producers and producing countries, pointing to development and environmental damage.

He also said that consuming countries still take a bigger slice of oil profits than producers through high gasoline taxes.
"If all these factors are taken into account, it is clear that the so-called high revenues of the producing countries are no more than nominal," he said. "If I may hazard a guess, I would say that even the range of $ 40-$ 50 per barrel, that is being advocated by some analysts, does not truly reflect all the factors," he said.

He said timely investment to renew and expand capacity is essential to maintain secure supplies and moderate prices.
"There is insufficient spare capacity to compensate for interruptions in supply," he said.

Source: Dow Jones
Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.


The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


Upcoming Conferences
« June 2019 »
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Register to announce Your Event

View All Events