Current Realities in the Upstream Sector of the Nigerian Oil & Gas Industry

Apart from the falling global oil Introduction price trend, Nigeria also has the following issues; • Economic Security 98 97 World Crude Oil Demand/Supply Dynamics 3-year trend window 96 96 ● Funding Challenges -Demand 95 • Renewed Insecurity in the Niger Delta -Supply 94 Price • Low Reserve Replacement Ratio (RRR) 93 92 • Poor Gas Development NIGERIAN High and Uncompetitive Production cost ASSOCIATION OF PETROLEUMONIST 919 MMBL P/D 120 100 80 80 60 60 40 40 20 20 90 Period 0 Oct/12 May/13 Nov/13 Jun/14 Dec/14 Jul/15 Jan/16 Source: Energy Information Administration (EIA) 2015 DHL Degeconek

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