Nigeria’s crude oil export to the US declines to 352,000bpd
Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu has revealed that Nigerian crude oil production has increased from 2.4 Million barrels per day to 2.7 mbpd.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), has also stated that China had become the alternative market for Nigeria’s crude oil, following dwindling imports by the United States, which was the major buyer of Nigeria’s crude oil.
He was quoted as saying “The decision of the United States is not driven by the fact that they don’t want to buy our oil; they have other issues. The Shale gas has been discovered and it is a major source of energy. But of course, the good news is that there are other parts of the world that are interested. As you know, major demand growth is going to come from China and the east. So, that is a very good replacement of whatever shortfall we have with the United States,”.
Nigeria’s crude oil export to the United States, which was over one million barrels per day (bpd) in December 2009, had declined to 352,000bpd as at February 2012, representing a loss of about 70 per cent of the United States’ market.
In September 2011, Nigeria’s crude export to the United States dropped to 580, 000bpd, with the country assuming the sixth position, after Canada, Saudi Arabia, Mexico, Venezuela and Russia.
Though refiners in Asia are said to be increasing crude oil imports, it is more difficult to ship crude oil from Nigeria to Asian countries than to the United States because of the long distances. The distance from the Shell’s Bonny Export terminal in Rivers State, to Tianjin, China, is 12,172 miles, compared with 5,847 miles to New York Harbour in the United States and as such some Asian refiners are said to be demanding for greater discount to buy Nigeria’s crude.