Wednesday, 28 May 2008

The rise and rise of Brent Sweet Crude

Nigeria is the world's 8th largest oil producer, but her production is down by 2/3 because of incidents like this which is why the price of Brent Sweet Crude is on a continuous upward trajectory. Her current daily output is 770,000 barrels as opposed to the 2.1m barrels it should be. The Nigerian government wants the daily output to increase to 4m barrels by 2010, but this will remain a pipe dream unless the grievances of the people of the Niger Delta are resolved. Western oil companies have committed crimes against the environment in the Niger Delta and have, thus far, refused to be held accountable for their actions. However a court case has been filed against Chevron which would see them being called to account.

The arrogance of the western oil companies involved in Nigeria's exploitation is breathtaking, but times are a changing. Yar'Adua has thrown down the gauntlet by asking Shell and ExxonMobil to pay their arrears. I would like to see him do a Chavez because after all the oil belongs to the Nigerians and they should be the principal beneficiaries. Oh, and if the western oil companies are not happy about renegotiating, ask them to leave because the Chinese and Russian oil companies will be queuing up to take their places.

No comments: