Petroleum Engineers Ponder on Challenges

Petroleum engineers on Monday took a critical look at the nation's petroleum industry, and concluded that the future of the global energy dynamics would be shaped by triple challenges. These include meeting rising demand for oil and gas, boosting shrinking hydrocarbon supply capacity, and contending the impact of climate from the production and use of energy.

Government's conviction

But, despite these challenges, Minister of Petroleum Resources, Rilwanu Lukman, insists he foresees an interesting, healthy, operationally active as well as commercially exciting future for Nigeria. Mr. Lukman, while delivering a keynote address at the opening of the 33rd annual international conference and exhibition of the Nigeria Council of the Society of Petroleum Engineers (SPE) in Abuja, said with the ongoing reforms by the present administration, the country still has the potential to develop the remaining hydrocarbon reserves and renewable energy opportunities to develop and grow all sectors of the economy.

Urging the SPE to mobilise and support the ongoing efforts to achieve the objectives of the Petroleum Industry Bill (PIB) currently undergoing scrutiny at the National Assembly, the minister said the legislation will ensure a comprehensive reform of the industry to guarantee the principles of transparency and good governance as well as indigenous participation in industry operations.

Technology deployment
The Managing Director, Shell Petroleum Development Company (SPDC), Mutiu Sunmonu, noted that Nigeria has enormous energy potential, particularly in the clean-burning natural gas sector, to meet the need for improved quality of living for the people, grow the economy, as well as meet global demands.

Identifying technology as key to maximising production from existing oil fields and unlocking Nigeria's remaining hydrocarbon resources, he pointed out that technology cannot deliver these objectives in isolation.

Mr. Sunmonu said the federal government should collaborate with the oil companies to create a skilled local workforce and strong energy supply chain.
With growth in energy demand expected to double by 2050 with increased global population, the SPDC boss said access to clean modern energy sources will be the catalyst for improving people's lives and ending poverty.

He advised the government against making the mistake of focusing on short-term dynamics of the industry, saying the industry needs to concentrate on sustained investments to realise long term national objectives.

"Finding solutions to the country's energy challenges will require unprecedented cooperation between government and industry and consumers. Nigeria has great potential to secure its own economic and energy future and to help meet the energy challenge. We must work together to make it happen," he said.

A challenging environment
Chairman/Managing Director, Chevron Nigeria Limited (CNL), Mr Andrew Fawthrop, noted that the challenges facing the oil industry today are varied, with efforts to prospect for and produce the commodity becoming more difficult and expensive.

The challenging environment, he argued, means the deployment of technology, expertise, best practice and competitive intelligence towards realising industry goals and objectives.
He said that commercial success and completion of industry projects have ceased to be the yardsticks for measuring business, adding that the impact of the extractive activities of the operatives in recent times has made it incumbent on them to do business in a socially responsible and ethical manner, by respecting the law, promoting community development and respecting the environment.

Chairman, SPE Nigeria Council, Mr Bayo Ojulari, said the changes in the industry as a result of the current global economic recession has posed serious challenges to the business environment, in terms of corporate and policy reforms, and prudence in spending, by adopting leaner processes of eliminating wastes and encouraging cost efficiency.
He said [with] the global economic recession showing no immediate signs of let up, amid falling oil prices, higher cost of capital, unfavourable local gas sales agreements, security challenges and regulatory reforms, there is need for the industry to come together to secure the future of the energy business.

The conference had the theme:

"Future Energy Dynamics: Sustainability, Research and Technology."

by by bassey udo (Journalist)