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Collaborating Authors
Deregulation of the Downstream Sector of the Nigerian Oil Industry and its Impact on Pump Price of Petroleum Products
Ekeinde, Evelyn Bose (Department of Petroleum & Gas Engineering, Federal University Otuoke Bayelsa) | Dosunmu, Adewale (Department of Petroleum & Gas Engineering, Federal University Otuoke Bayelsa) | Okujagu, Diepiriye Chenaboso (Centre for Petroleum Geosciences University of Portharcourt) | Obazeh, Dumbili Jerome (Emerald Energy Institute University of Portharcourt)
Abstract The oil industry is clearly the mainstay of the Nigerian economy, with revenues from the industry accounting for over 80% of the nation's foreign exchange as well as over 80% of GDP. Therefore, the importance of the petroleum industry to Nigeria's development and economic strength cannot be over stressed. This paper discusses the deregulation of the downstream sector of the Nigerian petroleum industry with emphasis on product pump price. Over the years it has been observed that despite the large volumes of revenue coming from the petroleum industry, the price of petroleum products continues in Nigeria continues to rise even with huge amounts of money spent on subsidizing product pump price to keep them affordable to the Nigerian people. The paper tries to analyse the concept of deregulation and how a well-planned and deregulation policy can be effected to achieved the desired goals of product availability and minimal pump prices. It proposes that a truly and fully deregulated downstream will not necessarily result in product pump prices that are lower than the current both in the short or long terms, but in a competitive market with many players compete resulting in product availability and competitive pricing. It puts forward that the government would have to put in place measures to curb corruption and collusion which might disparage on the successful deregulation of the subsector. It proposes that if the deregulation of the downstream is to yield best outcomes especially in product pump price then having an effective domestic refining capacity is very imperative which would include revamping the state owned refineries, issuing licenses’ for the construction of new refineries and operating them optimally. It recommends that the deregulation of the downstream must be gradual in order to achieve its desired goals
- Energy > Oil & Gas > Downstream (1.00)
- Government > Regional Government > Africa Government > Nigeria Government (0.69)
- Management (0.93)
- Facilities Design, Construction and Operation (0.68)
Imperatives of Modular Refineries and their Impact on Product Availability in Nigeria
Ekeinde, Evelyn Bose (Department of Petroleum & Gas Engineering, Federal University Otuoke Bayelsa) | Dosunmu, Adewale (Department of Petroleum & Gas Engineering, Federal University Otuoke Bayelsa) | Okujagu, Diepiriye Chenaboso (Centre for Petroleum Geosciences University of Portharcourt) | Ugherughe, Josephine Omolola (Emerald Energy Institute University of Portharcourt)
Abstract Nigeria is richly blessed with crude oil, with a proven reserve of 37billion barrels. Despite the abundance of this "black gold", Nigeria has over the years lacked the capacity to meet the country's demand for petroleum products locally and has resorted to the importation of petroleum products. This is largely due to the fact that the four state-owned conventional refineries, with a combined refining capacity of 445,000 bpd have been operating below optimal conditions, with a combined capacity utilization of 17% in 10years, from 2009 to 2018. Though establishing conventional refineries is highly capital intensive and significantly takes a long time to build and commission, the modular refinery option is however a less capital intensive alternative. This paper discusses the vital roles or importance of modular refineries as well as how it impacts on the availability of petroleum products in the Nigeria. It was discovered that Nigeria has lots of benefits to reap from exploiting modular refinery initiative, amongst which are eliminating fuel shortages and deficits, job creation, overall improvement of the economy and GDP growth, conservation of foreign exchange, among others. It was concluded that the right policy drive to encourage investors to dive into this initiative be put in place to enable Nigeria transit into an exporter of petroleum products.
- Energy > Oil & Gas > Upstream (1.00)
- Energy > Oil & Gas > Downstream (1.00)
- Government > Regional Government > Africa Government > Nigeria Government (0.71)
ABSTRACT The refining sector in Latin America and the Caribbean (LAC) represents 10% of the world total capacity. The energy security and overall future energy prospects of LAC will depend on many hurdles that must be crossed. These challenges include inadequate regulatory and tax frameworks, inadequate access to capital and financial markets, and increasingly complex technological issues. Energy security, rising demand and environmental issues, together with global, regional and local economic and political situations will affect strategic corporate decision making in the downstream sector in LAC. Global trends continue to apply additional pressure on industry to supply fuels that enable cleaner vehicle technologies. The impact is on demand and quality. Regional refiners need to be prepared to analyze the impact that future fuels will have on their refining system such as timing, cost, production, import export balances and also need to plan to meet future product challenges. At a Workshop summoned by ARPEL (Regional Association of Oil and Natural Gas Companies in Latin America and the Caribbean), refining industry experts and corporate decision makers, together with government decision makers and funding agencies shared their experience and expectations on how to best plan for cost-effective optimization of processes and supply, as well as on the need for existing and future investments. This paper describes the assessment made and results obtained at the Workshop, and represents a useful input for analysis by companies of the Region as alternatives to enhance their business viability. Key issues addressed include: refinery management and economics, fuel quality and environmental issues, financing issues as well as the potential use of MTBE and ethanol as alternatives for octane boosters. Regional issues and an analysis of the viability of the small refineries are also included. INTRODUCTION The energy security and overall future energy prospects of Latin America and the Caribbean ("the Region") will depend on many hurdles that must be crossed. These challenges include inadequate regulatory and tax frameworks, inadequate access to capital and financial markets and increasingly complex technological issues. Energy security, rising demand and environmental issues, together with global, regional and local economic and political situations will affect strategic corporate decision making in the downstream sector in Latin America and the Caribbean. Global trends continue to apply additional pressure on industry to supply fuels that enable cleaner vehicle technologies. The impact is on demand and quality. In several countries of the Region, the government is the sole owner of domestic refineries, protected by means of import restrictions, quotas, or high tariffs. In many cases, increasing government subsidies and the inability to attract capital for needed investment in the sector are two primary drivers for sector reform. For countries where the downstream petroleum sector is not yet open, government decision makers are analyzing how to restructure the sector to introduce effective competition.
- South America (1.00)
- North America > Central America (1.00)
- Government (1.00)
- Energy > Oil & Gas > Downstream (1.00)
- Banking & Finance (1.00)
- (2 more...)
Abstract. This paper briefly discusses the current status and expected trends of the economies of the Central-East European countries and -gives an overview about the recent developments and future prospects for capitalising expansion of the oil industries in the region. In the past generally large state-run conglomerates held monopolistic positions in the oil industries. Since the early 1990's the downstream sector has undergone a period of significant restructuring. Most of the oil companies were reorganised and became joint stock companies which are either fully state owned or have already been partially privatised. Some countries have profoundly modified the legal framework of the energy sector but sometimes excessive bureaucracy, confusion on responsibilities, rapid regulatory changes or delay in decision making are still the main barriers to the privatisation process. The main challenge to the Central-East European Downstream industry is to stabilise its position in this transition environment, react quickly and efficiently to the changes, build up more effective marketing infrastructure and apply the European Union environmental and product quality standards. Attraction of foreign capital for investment is essential for many companies. The state can facilitate this process with a more consistent, stable taxation and legislation system in accordance with the EU norms. I. INTRODUCTION Since 1989 significant and non-reversible changes have taken place in the political, economic and social life of the Central-European countries but still many challenges have to be faced on the path leading from a centrally planned economy towards a free market economy. These countries inherited diverse states of economic development and the pace of the undergoing changes are also very different. Therefore the current transition period is quite uneven in these countries and the region is not homogeneous. The countries of this formal ‘block’ achieved remarkable results by remodelling their economy into a more market oriented system by restructuring their production and ownership pattern, furthermore by creating modern legislation and institutions which are needed for a market economy. Even so the whole transition period is remarkably uneven in this group, the speed of the changes are quite different. But while the situation is diverse, most of the countries in the region have a common objective to become members of the European Union. Hopefully these prospects will act as a stimulus to further economic progress and reforms. For this task some of these countries established a regional co-operation forum, the CEFTA (Central European Free Trade Agreement, actually integrating the Czech Republic, Hungary, Poland, Slovakia, Slovenia and more recently Ro
- Government (1.00)
- Energy > Oil & Gas > Upstream (1.00)
- Energy > Oil & Gas > Downstream (1.00)
- Materials > Chemicals > Commodity Chemicals > Petrochemicals (0.69)
- Europe > Slovakia (0.89)
- Europe > Czech Republic (0.89)
Abstract According to the World Bank figures, the Sub-Saharan Africa (SSA) had an estimated population of 973 million as of 2014. The United Nations (UN) predicts for the region a population of 1.5 and 2 Billion by 2050. The SSA has enormous proven Oil and Gas reserves. Though some are not yet exploited, the region significantly exports unprocessed fuel to the global market only to re-import refined fuel at great cost. Paradoxically this is due to serious structural challenges in the value chain. With global oil prices tittering in the doldrums and rock bottom low, one would expect the SSA to benefit from this windfall opportunity and contribute to energy poverty alleviation. However, it appears the region has not benefited at all. The paper will highlight how the growing population will prove to be a harbinger for unprecedented logistical challenges in the regional supply chain. In addition, the presenter will argue how Africa has missed the opportunity to benefit from low oil prices on the global market. The paper will conclude with a watershed overview of both "Blue Ocean" and "Red Ocean" opportunities within the SSA and concomitantly build a case for regional integration and market approach as part of the panacea to cure the current and unprecedented future challenges in the wake of population and economic growth. SSA lacks logistic infrastructure to sustain the growing demand for energy. This is likely to pose growth constraints. An opportunity exists in investment in logistic infrastructure to sustain economic growth especially that the region will try to achieve growth through economic diversification from traditional mining to Agricultural, Manufacturing, Tourism and Energy industrialization. Economic diversification will create an increased middle class and have a positive effect on poverty reduction.
- Africa > Middle East (0.46)
- Africa > Sub-Saharan Africa (0.37)
- Africa > Zambia (0.29)
- Energy > Oil & Gas > Upstream (1.00)
- Energy > Oil & Gas > Midstream (1.00)
- Energy > Oil & Gas > Downstream (1.00)
- Banking & Finance (1.00)