Why America May Never Import Nigerian Crude Oil – Kachikwu
In the words of Nigeria’s Minister of state for Petroleum Resources, Ibe Kachikwu, the American oil export market is gone forever.
For a long time, America was Nigeria’s top crude importer, buying around 700,000 barrels per day of the commodity.
In fact, in February 2006, America’s crude oil import climbed as high as 1.31 million barrels per day, according to the US Energy Information Administration.
This volume has, however, been dropping since then, reaching zero import level by June 2015.
“That’s gone,” Kachikwu said at energy conference taking place in Houston, USA.
And this is all because America started exploring its own kind of oil known as Shale.
Nigeria’s crude oil grade known as light sweet is popular in the international market and it is the toast of US oil importers until the advent of the shale oil which is very similar to Nigeria’s light sweet.
So, as the US shale production has grown, the appetite for Nigerian crude in the US has dropped dramatically.
Nigeria has therefore turned to Asian markets led by India, where the Nigerian crude remains the favourite.
Nigeria’s oil output averaged 2.07 million in February, 20,000 barrels per day up from January, according to petroleum ministry estimates.
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