Nigerian Violence Could Cause Oil Crisis - Political Forum

CHUQ · #1 (**permalink**) 08-14-2007, 06:01 AM

Since the US gets a good portion of their crude from here, this could be a major prob in the near future.

A major crisis loomed in the nation's oil and gas industry yesterday as senior workers threatened to withdraw from the Niger Delta if the current spate of killings in the region continues.

Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) which issued the threat also charged the Federal Government to summon enough political will to tackle increasing violence in the region.
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Speaking in the same vein, Rivers State government urged the security agencies to address illegal oil bunkering and the activities of cult and militant gangs in the state.

SOURCE

CHUQ · #2 (**permalink**) 09-23-2007, 05:41 AM

This will become a hot topic when you start whining, bitching and pouting about the price of oil.

Wheeldog · #3 (**permalink**) 09-24-2007, 01:36 AM

The fact that we are concerned by the possibility of violence in Nigeria impacting the flow of oil imports into the U.S. is reflective of just how tenuous the supply of oil has become. Even without geopolitical turmoil in Nigeria, the price of oil has rocketed to over $80 a barrel within a very short period of time. There has not been hurricane damage to Gulf of Mexico oil rigs. Other than Iraq, there are no major wars raging in the Middle East. Virtually all major oil producers are currently enjoying relative peace.

So why is the price of oil climbing so dramatically??? The simple answer is because there is not enough being produced to meet rising demand. Indeed, the overall production high point took place in 2005, and it hasn't surpassed it since. We are currently using over two barrels of oil for every one barrel that is being discovered. That is a recipe for disaster.

NATe · #4 (**permalink**) 09-24-2007, 11:06 AM

Quote:

Originally Posted by Wheeldog

Other than Iraq, there are no major wars raging in the Middle East. Virtually all major oil producers are currently enjoying relative peace.

I dunno which world your living in but that is completely untrue. Have you seen Israel lately? Or Pakistan? The only reason our media doesnt report on the constant violence in those countries is because its been going on for centuries and it wouldn't make for good news.

Wheeldog · #5 (**permalink**) 09-24-2007, 09:37 PM

Quote:

Originally Posted by NATe

I dunno which world your living in but that is completely untrue. Have you seen Israel lately? Or Pakistan? The only reason our media doesnt report on the constant violence in those countries is because its been going on for centuries and it wouldn't make for good news.

These are areas of serious concerns, but they currently are not major wars. That is not to say that they will not esculate into full-scale conflicts. Also, these situations are not constraining the pumping and shipping of oil. Overall, the great majority of oil exporting nations can pump and transport as much crude as they wish - or as much as their reserves are able to supply. The fact that we are concerned about the rebels in Nigeria reducing the flow of oil from that country is indicative of the fact that the world supply of oil is extremely tight - and getting tighter. So-called "spare capacity" (the amount of oil that can be added to the current rate of flow) has been considerable in the past. Saudi Arabia and other nations could simply open the taps a bit more whenever they chose to keep price increases from setting off recessions in importing countries. Indications are that spare capacity is now almost zero.

It would only take one or two successful attacks on a major oil port or production facility in the Middle East or a direct hit of a major hurricane on oil production platforms in the Gulf of Mexico to set off an explosive price increases. We are literally skating on thin ice when it comes to oil.

NATe · #6 (**permalink**) 09-25-2007, 11:43 AM

I agree with your there but the comment you made about the no wars thing is a seperate issue in my opinion. I think the senseless killing of any nation to nation should be considered a war. But i agree with you. We are on very thin ice.

Brother Oz · #7 (**permalink**) 09-25-2007, 03:02 PM

Palestine and Israel are not oil producing countries. There are other countries in the Middle East with Wars besides Iraq, such as the aforementioned Palestine/Israel, Yemen, Sudan, and so on, but Gulf states like Saudi Arabia, Bahrain, UAE, Iran that are the big oil producers are currently fine.