OrderPaperToday- To encourage more oil production, an expert in the field known as Israel Aye has stated that the country needs approximately $14-$17 billion dollars every year to produce about 3 million barrels per day.
Speaking at an event organised by the OrderPaper Advocacy Initiative tagged ‘Oil revenue, reform and stabilisation’ at the Eko Hotel Lagos, Mr. Aye advised the country to disregard myths on diversification away from oil and resource cost.
He explained: “Some people say we should diversify away from oil. I don’t think that is the solution because natural resource is one economic resource that you have to manage and If you have not been able to manage one thing; there is no assurance you will be able to manage another.
He wen further to state: “Another myth I would like to dive into is the myth of resource cost. There is a thinking that those who are endowed with natural resources are almost cursed in managing it and to end up in poverty but that is not true.”
The oil pundit noted that a legal framework such as the Petroleum Industry Bill (PIB) could provide the required infrastructural development.
“Part of my argument is that we don’t have a petroleum industry rather we have an extractive industry. In order for you to have a petroleum industry, you have to have a certain threshold of domestic utilisation and participation. We have a petroleum economy that is at its infancy. We have a petroleum extractive industry that is over 50 to 60 years.
“From 2008, I have been somewhat associated with various efforts to pass the Petroleum Industry Bill and I am aware of the fact that it is designed to create the enabling environment to grow a petroleum industry within the country.”
During his speech, Mr. Aye also highlighted some global trends that the country should adopt in the sector including “rising neo-nationalism, protectionist sentiments, adjusting to the predictable shock of new oil price levels, the interchange of demand and supply has changed particularly in what is known as the Atlantic prism.”
According to him, the bill which ought to provide the right playing field for investment is not conducive enough for people to have capital and “there is a lot of capital around the world for people to come and meet challenges and solve but we have not been able to eyeball these issues from policy and legislative point of view.”
In conclusion, Mr. Aye canvassed for a conducive playing field that will permit investments in the sector, while noting that there are foreigners willing to solve our challenges with their capital.