Bede2u:
This topic should be screen grabbed. We shall use it to bury APC and Buhar in 2019 when that start complaining that low oil prices made them not to perform. They claim oil sold above $100 during GEJ regime, but they never say for how long it remained at that

9jakohai:


Deregulation is the answer....

You want fuel at N87.....you find the billions of dollars needed to pay for subsidy.

APC has not handled the fuel crisis well....but when people like you protested against deregulation back in 2012...you destroyed our only good chance to solve this issue.

EvilMetahuman:
the one they deregulated for over 2 years now, what did they do with it?


we didnt trust jonthan with deregulation, we didnt allow him and voted him out. buhari just proved us right all along that the so called deregulation is a scam. we are back to where we started from. and you are here still talking about stupid deregulation that would amount to nothing.

EvilMetahuman:
the one they deregulated for over 2 years now, what did they do with it?


we didnt trust jonthan with deregulation, we didnt allow him and voted him out. buhari just proved us right all along that the so called deregulation is a scam. we are back to where we started from. and you are here still talking about stupid deregulation that would amount to nothing.

9jakohai:


1.GSM was deregulated from the word go....no price controls, nothing....and we went from N7000 Sim to N500 sim...because the GSM companies were allowed to make their profits freely....which freed them to pour in more money freely....

2.Subsidy itself costs a lot of money tpo sustain.

3.Oil subsidy is not sustainable....it does not let marketers and oil companies make enough profit to break even. That is why many workers in fuel stations across Nigeria get poor salaries.,....and why we don't have more investment in things like refineries as well....and why saboteurs divert fuel to other countries...which can be sold for a profit.

See the pictogram below...made when pms was at N87....and you will get it better.

9jakohai:


Oil was above $100 under GEJ from 2011-14.

spafu:

But you trusted Buhari with deregulation? You didn't trust a man that was more competent but you trusted one who didn't even have the capacity.

9jakohai:


1.GSM was deregulated from the word go....no price controls, nothing....and we went from N7000 Sim to N500 sim...because the GSM companies were allowed to make their profits freely....which freed them to pour in more money freely....

2.Subsidy itself costs a lot of money tpo sustain.

3.Oil subsidy is not sustainable....it does not let marketers and oil companies make enough profit to break even. That is why many workers in fuel stations across Nigeria get poor salaries.,....and why we don't have more investment in things like refineries as well....and why saboteurs divert fuel to other countries...which can be sold for a profit.

See the pictogram below...made when pms was at N87....and you will get it better.

Bede2u:
...

marryjesus:
Crude oil price has risen by $20 per barrel above Nigeria’s benchmark of N45 a barrel in the 2018 proposed yearly budget.In the proposed N8.6 trillion ‘Budget of Consolidation’ presented by President Muhammadu Buhari to the National Assembly for approval, crude oil benchmark price was put at an average of N45 per barrel, based on low benchmark price of $35, medium ($45) and high ($55) scenarios, while production was set at 2.3 million barrels per day.

At the close of Tuesday trading hour, global benchmark, Brent crude oil price was $65.25 a barrel, while the West Texas Intermediate (WTI) settle at $58.47 per barrel.What this means is that, at Nigeria’s production peg of 2.3 million proposed in the 2018 budget, the country will be making an excess crude oil earnings of $46 million per day (N16.5 billion), if crude oil price remain at $65 a barrel in 2018.

Brent crude oil has remained at above $60 a barrel level in the last few days, sparking talks that this could be the new floor under oil prices and that $70 a barrel oil in short term is now not only a producers’ wildest dreams, but a reality.This also shows that the crude oil production capping embarked upon by members and non-members of the Organisation of the Petroleum Exporting Countries (OPEC) is yielding positive result.


For example, as of November 2017, the OPEC and participating non-OPEC producing countries achieved an impressive highest conformity level of 122 per cent, following the pattern of high performances in the past months.This, OPEC said is coupled with the aforementioned amendment of the Declaration of Cooperation, is an unequivocal demonstration of the steadfast commitment of participating countries to continue working towards the achievement of the goal of rebalancing the market and putting it on a sustainable stable footing.

According to OPEC, The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) expressed great satisfaction with the results and sustained level of high conformity with the voluntary production adjustments, and encouraged all participating countries to achieve full conformity for the benefit of producers and consumers alike.

The Minister of State for Petroleum Resources, Ibe Kachikwu, Nigeria was capable of meeting and exceeding the 2.3 million barrels per day crude oil production and oil revenue benchmarks in the proposed 2018 budget before the National Assembly for approval.“First, the 1.8 million barrels per day was not a cap fixed for Nigeria by OPEC, but an expectation,” he explained.

“Also, Nigeria’s oil output does not include condensate production of 350,000 barrels per day. So, between 1.8 million bpd and 350,000 bpd, we are doing 2.2 million barrels per day. We can produce more than the 1.8 million bpd if we have the capacity.”

Group General Manager, Corporate Planning and Strategy, Bala Wunti, said the current production capacity for the country was more than 2.3 million barrels per day, noting, however, that due to the insecurity in the Niger Delta region, the full production capacity has not been achieved over the years. “The 2018 crude oil national production projection for Joint Ventures, Modified Carry Arrangement or External Financing, Production Sharing Contracts, Independents, Marginal Fields and Service Contracts is about 2,298,000 barrels per day,” Wunti said.

He added that the 2018 price projection on the long term price assumption was based on price scenarios of $35 (low), $45 (medium) and $55 (high), stressing that most price forecasting agencies thought that the medium price scenario had the highest probability of occurrence which the 2018 budget was hinged upon. “Consequently, a conservative price projection of $45 per barrel was used as benchmark for crude price for 2018 budget,” Wunti stated.

http://www.akelicious.com/2017/12/oil-price-inches-towards-70-44-above.html

IMASTEX:
Well, I may not consider it a good news because it means more cash to be shared at the top. How on earth will a fisherman catch & sell his fresh fish for #10 per one. Then go back again to buy the same fish when dried at #100. When it will cost him nothing to get the fish dried himself in the fist place. This country is under a curse.

9jakohai:
Bad news

1.We still need oil at $123 to balance the books.

2.We need to pay off debts incurred due to oil price crash PLUS the fact that we have not reached the minimum benchmark we need.

3.We need to diversify

Bede2u:
This topic should be screen grabbed. We shall use it to bury APC and Buhar in 2019 when that start complaining that low oil prices made them not to perform. They claim oil sold above $100 during GEJ regime, but they never say for how long it remained at that

macaphan007:
You are right,2012 would have been the best time to remove subsidy but because of lack of information and individual education by Nigerians on matters like this we are faced with the ugly scenario again,full deregulation is the only solution,the Senate should pass the PIB and allow more investment in the upstream sector.since Buhari once said subsidy is a scam,well Nigerians should be ready to pay more for PMS cos the landing cost will increase.if we allowed Jonathan then and the PIB was passed things would have been fair by now and Nigerians would have adjusted to the price.....it is well.

GavelSlam:


You've been peddling these figures for a while without any references to back them up.

GavelSlam:


No it wouldn't.

The best time to remove subsidy would be when you have local refining capacity viz private refineries competing with each other as against cost of import.

Should that be fixed, there would be an initial jump in price but eventually a flat line as it balances out.

GavelSlam:


You've been peddling these figures for a while without any references to back them up.

9jakohai:


I got the dollar figures from a Bloomberg report back in 2014....

The same report put it at $77 for Saudi Arabia, $99 for Russia.

Also, earlier this year, Fitch put it at $139 per barrel for Nigeria...so even i am being optimistic

Nigeria needs $139 oil price-vanguard

GavelSlam:


Please provide the Bloomberg and Fitch links.

macaphan007:
That's why I said the Senate should pass the PIB,my Boss has a client that has the license to build a 120bpd refinery and two modular refineries but cos of too many constraints its difficult for her to get foreign investors to partner her cos even her bank can provide a financial guarantee,13 companies have license to build refineries in Nigeria why is Dangote the only one the Govt is assisting?I agree with you but the PIB has to be passed to provide a level playing ground for all investors and the local communities where the raw material is gotten from.

9jakohai:


Have done that earlier.....see my second mention.

The bloomberg report makes for some very interesting reading.

Just in case you missed it....The Bloomberg report

GavelSlam:


You do know this has to do with budget balancing and not cost of production.

9jakohai:


But of course....which is what the original post of mine you responded to first was referring to.

When oil prices go up, Nigerians somehow expect increased cash to fund everything...when the cold reality is that the cash is not enough....and the looting makes it more painful.

We need to get off oil dependency. And...this is why, harking somewhat to the 'cost of production', we need to also realise that we cannot fund subsidies adequately.

It is an argument i don't like making...but it is the cold fact. We are not a rich nation. Rich nations have more than one revenue source, and it isn't hawking raw materials

Millz404:
Even if it is $200, buhari will not still perform.
He is that useless to Nigeria