Cutting Supply Not Enough To Drive Up Oil Prices, IOCs Replies Kachikwu

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Minister of State for Petroleum Resources, Dr. Ibe Kachikwu thinks freezing supply at certain levels would help drive up oil prices. But International Oil Companies (IOCs) and energy experts, yesterday, said he is wrong.

They stated that freezing the supply of crude oil alone would not likely lead to a rebound in the price of the commodity, stating that other factors needed to be considered also.

Speaking at the ongoing Sixth African Petroleum Congress and Exhibition (CAPE VI) in Abuja, the IOCs and the energy experts disclosed that due to inefficiencies in terms of energy use, the demand curve at the moment was not what obtained in the past and would hamper a rebound in oil prices to levels seen in the past.

Mr. Clay Neff, Chairman, Oil Producer Trade Section, OPTS, of Lagos Chamber of Commerce and Industry, LCCI, stated that effective collaboration was critical in overcoming the challenges facing the petroleum industry.

According to him, success at the continental level and, indeed, globally starts with a critical recognition that producing and consuming countries, IOCs and all stakeholders in the oil and gas industry must all recognize that when it comes to the challenges of the industry, they are all playing for the same team.

Neff, who is also Chairman/Managing Director, Chevron Nigeria Limited, maintained that collaboration would throw up practical solutions which would help drive the industry.

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