"How oil receipts declined from $3bn to zero"

" How oil receipts declined from $3bn to zero \r\nThe official foreign exchange receipt from crude oil and gas sales into Nigeria\u2019s official reserves has dried up steadily from about $1.9 trillion in 2014 to an absolute zero dollars today, data from the Central Bank of Nigeria (CBN) have shown.\r\n\r\nExperts have proffered several reasons for this decline, ranging from falling oil and gas production, rising payments for petrol subsidies and ballooning government costs.\r\n\r\nThe issue, which has been simmering since the past seven years, became a hot button issue when Godwin Emefiele, governor of the CBN, said the official FX receipt from crude oil sales into the official reserves has dried up steadily from above $3.0 billion monthly in 2014 to zero dollars today.\r\n\r\nThe following numbers reveal the rate at which crude oil and gas sales going into the Federation Account declined in Africa\u2019s largest economy, using data sourced from the CBN, noting the factors that account for their drop in the prevailing years.\r\n $1.9 trillion (2014) \r\nIn 2014, $1.9 trillion earned from crude oil and gas sales was transferred into Nigeria\u2019s reserves. That same year, the country pumped on average about 1.962 million barrels per day (bpd), according to the Organization of the Petroleum Exporting Countries (OPEC).\r\n\r\nBusinessDay Research and Intelligent Unit reported in 2014 that India\u2019s import of Nigeria crude oil reached 116.8 million barrels in 2014.\r\n $898 billion (2015) \r\nCrude oil and gas sales fell to $898 billion in 2015 as the average oil output fell to 1.88 million bpd from 1.96 million bpd in 2014. Nigeria was preparing for the general elections and agitations were already rising in the Niger Delta, crimping oil production.\r\n $389 billion (2016) \r\nBy the first quarter of 2016, the global oil market was on the brink of crises as global supply outpaced demand, leading to a slump in oil prices to below $30 per barrel.\r\n\r\nAccording to OPEC data, Nigeria\u2019s annual average production declined to 1.556 million bpd in 2016 from 1.88 million bpd.\r\n\r\nIn January that year, gunmen blew up an oil pipeline belonging to Italy\u2019s Eni in the Delta, killing three workers, according to officials.\r\n\r\nThe next month, Niger Delta militants calling themselves Movement for the Emancipation of the Niger Delta, staged an underwater attack on a Shell pipeline, shutting down the 250,000 barrel-a-day Forcados export terminal.\r\n\r\nTo halt oil decline, OPEC and non-OPEC countries including Russia agreed on a pact that will eventually prove to rescue global oil markets.\r\n $795 billion (2017) \r\nRising from a turbulent 2016, where crude prices found the floor at $30 per barrel and militants were blowing up pipelines, 2017 marked a significant recovery for the sector.\r\n\r\nThe Forcados oil terminal restarted. Few months after the Forcados terminal came on stream, Nigeria was able to ramp up crude oil production to 1.8 million bpd from below 1.5 million bpd recorded for much of 2016.\r\n\r\n2017 witnessed a flurry of policy approvals including the national oil and gas policies. In August that year, a landmark Gas Sales & Aggregation Agreement with Greenville LNG for 74MMscf gas delivery to a $500 million LNG facility located in Rumuji, River State was signed between Nigeria and investors due to the gas policy.\r\n\r\nNigeria came under the OPEC+ pact, which placed a cap on the country\u2019s production.\r\n $415 billion (2018) \r\nIn 2018, crude theft began to become the new normal. Nigeria lost a total of 53.281 million barrels valued at $3.837 billion (applying an average price of $72.01) to crude oil theft and sabotage.\r\n\r\nThis is an increase of 46.15 percent when compared to 2017 volumes of 36.457 million barrels. Shell lost about 57 percent of its total production of 62 billion barrels in 2018 to crude oil theft, while Chevron lost about 2.6 billion barrels from its output 62.8 billion barrels.\r\n\r\nSeplat lost about 1.7 billion barrels from its total 2018 oil production of 8.7 billion while NewCross lost about 1.1 billion barrels from its total oil production of 6.1 billion.\r\n\r\nIndependents began shuttering oil fields and oil majors started entering discussions to sell off their onshore assets as they decreased oil production activities in them.\r\n\r\nRead also:\u00a0 More pain for Nigeria\u2019s economy as FG admits loss of biggest crude buyers \r\n $398 billion (2019) and $356 billion (2020) \r\nAs the average annual oil production fell from 1.78 million bpd in 2019 to 1.575 bpd in 2020, crude oil and gas sales dropped by 10 percent due to struggles in producing oil.\r\n\r\nCOVID-19 decimated global oil markets as governments across the world shuttered their economies to halt the spread of the rampaging pathogen.\r\n\r\nNigeria\u2019s oil production declined rapidly in 2020 as oil companies in the country also shut operations. Production suffered and declined below 1.4 million bpd.\r\n $35 billion (2021) \r\nBy 2021, Nigeria was unable to meet its OPEC+ quota as production hovered around 1.2 million bpd.\r\n\r\nCrude theft began to occur on an industrial scale, leading independents to shut their fields. Heirs Holding and other producers started to lament the impact of oil theft on their productions.\r\n\r\nOil majors that were contemplating leaving Nigeria hardened their resolve and began moving investments elsewhere. ExxonMobil, for example, had discovered lucrative fields in Guyana and were searching for independents to offload their onshore, shallow water assets.\r\n\r\nOther countries were now being assigned Nigeria\u2019s unused quota.\r\n $0 (2022) \r\nRevenues have dropped to zero as Nigeria now spends virtually all its crude earnings to pay for petrol subsidies.\r\n\r\nThe Nigerian National Petroleum Company Limited, after changing its logo and claiming it is now a commercial firm, began a campaign to force the government to tackle crude theft.\r\n\r\nInvestors had abandoned their oil fields, oil service firms were shuttering as businesses dried up and even the Nigeria LNG Limited, which secured a final investment decision on its Train 7 project, was impacted by crude theft.\r\n\r\nThe Nigerian Upstream Petroleum Regulatory Commission, in its oil production status report, showed that Nigeria produced less than 1 million bpd in August and September as Libya and Angola overtook the country.\r\n \r\n \r\n \r\n "

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