OIL AND GAS 1.7C OPEC (NIGERIA REMAIN MEMBER)
SHOULD NIGERIA CONTINUE TO BE A MEMBER OF OPEC?
Arguments for Nigeria’s continued membership of OPEC:
- Member countries (like Nigeria) have been able to derive more revenue from export of oil and gas.
- The coalition of oil producing states (to form OPEC) resulted in greater bargaining power against the IOCs and the interest of member countries are advanced.
- Argued that if Nigeria leaves OPEC, it would produce more but earn less. This argument is questionable in the light of non-OPEC member countries like Mexico and Russia which produce more and still sell at reasonable prices.
- OPEC was the brain behind the establishment of National Oil Companies to advance state participation in the production of their natural resources. The Nigerian National Oil Company was established to this effect. This has in turn helped Nigeria to take greater control of her natural resources.
- OPEC has contributed to the regulation of the oil sector to some extent. Nigeria should adhere to her policies for a good oil sector.
- Some argue (Diwan Fawibe (Chairman of international energy services ltd)) that since the OPEC president (Alison Madueke) is a Nigerian, she would likely favour Nigeria.
- OPEC production quota to Nigeria is inequitable and inhibits her development: For example, Nigeria (with over 120 million citizens) has a production quota of 2.018 million barrels while smaller countries like Saudi Arabia (with about 22 million population) is accorded over 7million barrels. It has however been argued that this is done based on the reserves available in a country.
- Extinction of Petroleum: Research for and discovery of alternative sources of energy are made daily. People advise that Nigeria pulls out of OPEC and maximise the exploitation of her resources on time.
- Most member countries still remain undeveloped.
- Existence of a parallel market like OAPEC (discussed above).
In conclusion, although OPEC has faced and continues to face challenges it is nevertheless a force to be reckoned with. Nigeria is to blame. Embezzlement, laziness, inability of Nigeria to produce and refine, and so on. depending basically on oil. A return to agriculture and other means. Who is sure that the higher money obtained from our production quota would be spent well- Dr Mobolaji Aluko.