TheCable

The federal government says it targets four million barrels of crude oil per day and grow the nation’s reserves to 40 billion barrels through the marginal oilfields.

President Muhammadu Buhari, represented by Timipre Sylva, minister of state for petroleum resources, said this at the fourth edition of the Nigeria international petroleum summit (NIPS) in Abuja on Monday.

Buhari said his administration’s drive for discovery of more reserves and ramping up oil production is irrevocable and he called for stringent measures to reduce production cost.

He urged participants at the fourth NIPS to focus on strategies that will further harness the hydrocarbon deposit in the country.

“The ambitious goal of ramping up crude oil production to at least four million barrels per day, and building a reserve of 40 billion barrels remains sacrosanct and guiding principle to our overall outlook for the industry, creating a conducive business environment for hydrocarbon industry to thrive is no longer a choice. It is a necessity,” Buhari said.

“In this regard, lower cost is critical. Cost is the energy of the future. The industry needs to drive down costs per barrel before it is exterminated by prices falling below production costs, a phenomenon we experienced at the outset of the pandemic.

“Governments across the world are now more focused on tracking the crises caused by COVID-19 to economies than the press for energy transition, however energy transition is real and renewable energy is getting cheaper.

“Investors are increasingly conscious of environmental issues and are beginning to turn their back on hydrocarbon investments, but history has shown that human beings have an insatiable need for energy, which renewables do not have the capacity to provide in the foreseeable future.

“Experts project that 80 percent of the world’s energy needs by 2040 will come from hydrocarbons.

“Fossil fuels will continue to be the source of dozens of petrochemicals and petrochemical feedstock that companies transform into versatile and valued materials for modern life.”

Buhari further said the hydrocarbon industry will still remain a multi-trillion dollar industry in the coming decades especially for a country with a vast hydrocarbon potential like Nigeria.