U.S. may halt crude oil import from Nigeria

There are indications that the United States may halt crude oil import
from Nigeria by 2022 , as it moves closer to becoming a net export of
petroleum products . The United State Energy Information
Administration (EIA ) has projected that the United States will become
a net energy exporter in 2022 in the newly released Annual Energy
Outlook 2018 , primarily driven by changes in petroleum and natural
gas markets.
Nigeria saw a significant reduction in the US imports of its crude in
recent years , starting from 2012 , following the shale oil production
boom . The U. S . imported a total of 28 . 53 million barrels of crude
oil from Nigeria in the third quarter of last year, up from 18 . 88
million barrels in the same period in 2016 ; 10 . 13 million barrels
in 2015 ; 5 . 10 million barrels in 2014 ; and 21 . 23 million barrels
in 2013 .
The Minister of State for Petroleum, Dr . Ibe Kachikwu said recently
that Nigeria would explore the possibility of selling crude oil to
African markets. He said: "Nigeria has to begin by looking at the
country first . What do we do to encourage local companies to be able
to compete in Africa ? It is along these lines for example , that we
have started product or sector specialisation which are the areas
where we have the most competitive advantages. "
According to EIA , the transition from net energy importer to net
energy exporter occured even earlier in some sensitivity cases that
modify assumptions about oil prices or resource extraction .
Sensitivity cases with less energy production project that the United
States will remain a net energy importer through 2050 .
It stated : " The transition of the United States to a net energy
exporter is fastest in the High Oil Price case , where higher crude
oil prices lead to more oil and natural gas production and transition
the United States into a net exporter by 2020. In that case , higher
crude oil prices also result in higher petroleum product prices and
lower consumption of petroleum products , driving decreases in net
petroleum imports .
"In the High Oil and Gas Resource and Technology case , with more
favorable assumptions for geology and technological developments, the
United States becomes a net exporter in 2020, and net exports increase
through the end of the projection period. In cases with relatively low
oil prices or less favorable assumptions for geology and technological
developments, U. S . net energy trade still decreases, but the United
States remains a net energy importer through 2050.
"In energy equivalent terms , the United States imported about 27
quadrillion British thermal units (quads) of energy in 2017 and
exported 18 quads, which resulted in 9 quads of net imports . In 2017,
the United States imported about 11 quads of petroleum and other
liquids and exported two quads of coal and coal coke . U. S . natural
gas trade in 2017 was nearly balanced between imports and exports, and
net electricity trade with Canada and Mexico was relatively small .
Petroleum and natural gas account for most of the changes EIA projects
in U . S . energy trade . "
EIA said that U. S . net petroleum trade —crude oil , petroleum
products , and natural gas plant liquids —has fallen in recent years ,
reaching 3 . 8 million barrels per day (b / d ) in 2017 based on data
through November .
He expressed concern that the country has not been able to capture the
African terrain of the market, adding that the market must be captured
in terms of contract awards , whether in crude , investment or other
formulations .