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Kachikwu laments loss of US market for Nigeria’s crude oil

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Crude oil production cuts likely to persist into 2019 –Kachikwu

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has said that the large export of crude oil from Nigeria to the United States of America (USA) has been lost forever.

“That’s gone,” Kachikwu stated at CERAWeek conference in Houston, USA,

The minister said this as CERAWeek conference continues outreach between the Organisation of the Petroleum Exporting Countries (OPEC), and shale producers.

The light sweet crude produced in Nigeria is very similar to the light oil produced in US shale.

Prior to the growth of US shale, the US had until the early 2000s, remained a top importer of Nigeria’s crude, purchasing around 700,000 b/d of the commodity. It even climbed as high as 1.31 million b/d in February 2006, according to the US Energy Information Administration.

However, the volume has continued to drop to a level of reaching zero import level by June 2015 following a surge in production of shale oil.

Following that growth, the appetite for crude from Africa’s biggest producer in the US has dropped dramatically.

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Currently, Nigerian crude is the favourite of the Asian markets led by India.

According to petroleum ministry estimates, Nigeria’s oil output averaged 2.07 million in February, 20,000 b/d up from January.

 

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